Page 6 - BowieNews

Basic HTML Version

6 •
Wednesday, October 29, 2014
By Ed Ireland, execu-
tive director, Barnett
Shale Energy Educa-
tion Council
A new economic im-
pact study of the fiscal
contributions of the Bar-
nett Shale finds that the
current regional gains
in business activity and
tax receipts related to
oil and gas exploration
include $11.8 billion in
gross product per year
and more than 107,650
permanent jobs.
Commissioned by the
Fort Worth Chamber of
Commerce and conducted
by The Perryman Group
(TPG) of Waco, the Sept.
2014 impact study shows
that despite reduced drill-
ing and fluctuating natu-
ral gas prices, production
remains stable and the
annual gross product has
in fact increased by $700
million since the last
such study by Perryman
in 2011, when the figure
was at $11.1 billion an-
“Even with the re-
cession and the drop in
{natural} gas prices, the
production and job levels
have remained stable and
provide ongoing benefits
to the region and the
state,” said Ray Perry-
man, TPG founder and
president. “The energy
produced from the Bar-
nett Shale is an impor-
tant domestic fuel source
for the nation with sig-
nificant strategic and
economic value.
“Exploration activity
for both natural gas and
oil is likely to increase
in the future as price
and global market condi-
tions change,” he add-
ed. “A number of things
could move the numbers
upward: greater LNG
capacity development,
infrastructure to allow
more uses for natural
gas, higher CNG fleet
usage, global demand,
volatile foreign politi-
cal situations, tighter
emission regulations for
utilities and technology
In annual tax receipts
alone, the economic ac-
tivity in the relevant
region of 25 counties in-
cluded in the Barnett
Shale generates an esti-
mated $480.6 million to
local government entities
(including cities, coun-
ties and school districts)
and $644.7 million to the
state of Texas.
For the state, the cur-
rent impact of the Bar-
nett Shale is estimated
to be $12.8 billion in an-
nual gross product and
about 115,000 permanent
jobs. The tax receipts
statewide include $517.3
million to local govern-
ments and $686.3 million
In Montague County,
The Perryman Group
estimates the current
annual impact of the Bar-
nett Shale is 2,018 person
years of permanent jobs,
with the bulk, 1,206, be-
ing in retail trade. The
current annual impact of
Barnett Shale activities
in Montague County is
$160 million in real gross
product and $97 million
in personal income.
The Perryman Group
also looked at the esti-
mated cumulative impact
of the Barnett Shale on
business activity from
2001 to 2014.
For Montague County,
the Barnett Shale has
generated a whopping
$1 million in real gross
This activity has cre-
ated 13,703 person-years
of employment. Retail
trade in Montague Coun-
ty has been boosted the
most, followed by mining
(which is oil and gas),
transportation and utili-
ties services and finance,
insurance and real es-
Even better news is
that the positive econom-
ic impact of the Barnett
Shale will continue in the
future. The Perryman
Group estimates that
Barnett Shale activities
will produce almost $2
billion in real gross prod-
uct and over 23,000 per-
son-years of employment
during the 10-year period
from 2014 to 2023.
Ray Perryman notes
t he r eas on Ba rne t t
Shale activities continue
to have such a signifi-
cant economic impact
on North Texas is due to
the multiplier effect. The
multiplier effect is high
in the Barnett Shale,
says Perryman, because
the play is situated near
a large metropolitan area
and many support indus-
tries are located in the
As a result, theBarnett
Shale has a multiplier of
six or more. This means
every dollar generated
by direct expenditures
by the natural gas and oil
industry generates six or
more dollars in other sec-
tors such as retail trade.
Ed Ire land, Ph.D.
brings a 20-year career
in the oil and gas indus-
try, along with extensive
management operational
expertise to the BSEEC.
He started as an energy
economist and soon devel-
oped his own independent
oil and gas exploration
company. Ireland has
a BS in economics from
Midwestern State Uni-
versity and a Ph.D. in
economics and statistics
from Texas Tech Uni-
For information on the
BSEEC visit its website
Ed Ireland
Economic impact
strong across the
Barnett Shale
Oil wells - green
Gas Wells - red
Drilling Permits - blue
Producing wells and regions of the Barnett Shale
Updated March 26, 2014 Texas Railroad Commission