Institute for Economic Development releases forecasts for West Texas oil and gas play
Ten counties in a West Texas oil and gas play will produce $20.5 billion in economic output in 2022, according to a new study released today by the UTSA Institute for Economic Development.
UTSA Institute for Economic Development Research Director Thomas Tunstall released the study, which describes the economic output of Fisher, Glasscock, Howard, Irion, Martin, Mitchell, Nolan, Reagan, Scurry and Sterling counties.
Additional forecasts for the year 2022 include:
- 30,540 full-time jobs supported
- $1.8 billion in salaries and benefits paid to workers
- $9.4 billion in gross regional product
UTSA's Tunstall also predicts that the region will gain $701 million in state revenue, including $334 million in severance taxes and $664 million in local government revenue.
"Our research indicates that while Howard County and the Big Spring area are still expected to have the largest economic impact, Reagan and Irion counties are expected to see significant increases in gross output between 2012 and 2022," said Tunstall.
The study reported the growth and impact that the oil and natural gas industry has on residents and decision makers in the West Texas region. Although industry developments may still be considered recent, the scope and breadth of its impact is very large, and tangible effects on the region will be felt for years to come.
The ranges of the study's figures are broad due to high variability in the prices of oil and gas, the challenges forecasting future oil and gas activities, changes in the number of wells per rig and changes in productivity per worker for relevant industries in the study.
After a drop in production in the early half of the 2000s, annual oil production in the United States has dramatically increased from 3.1 billion barrels in 2008 to 4.1 billion barrels in 2012. The United States is now ranked second in the world in oil production, behind only Saudi Arabia (4.2 billion barrels). This surge in U.S. domestic oil production has contributed to the recent decrease of the U.S. trade deficit.
The UTSA Institute for Economic Development is dedicated to creating jobs, growing businesses and fostering economic development. Its 12 centers and programs provide professional business advising, technical training, research and strategic planning for entrepreneurs, business owners and community leaders. Its programs serve San Antonio and the Texas-Mexico border area as well as regional, national and international stakeholders. Together with federal, state and local governments, and private businesses, the IED fosters economic and community development in support of UTSA's community engagement mission.