The Barnett Shale natural gas drilling boom has had an economic impact of $65.4 billion in North Texas since 2001 and now supports, directly and indirectly, 100,268 jobs in 24 counties, according to a report by economist Ray Perryman.
Employment in the region is about 8.7 percent higher, and personal income about 8.5 percent more, than it would be without the Barnett Shale, which has generated 38.5 percent of the area's economic growth since 2001, Perryman said in presenting his report Tuesday to the Fort Worth City Council.The huge economic impact of the Barnett Shale, accomplished in just a decade, has been "remarkable," he said."It's been a nice addition to the job base when a lot of businesses are struggling," he said.Perryman is a well-known Texas economist whose Waco firm, the Perryman Group, has done many economic impact studies for groups and industries. The new report, "A Decade of Drilling," was commissioned by the Fort Worth Chamber of Commerce.Perryman said jobs related to the Barnett Shale peaked at about 120,000 in 2008 because of high natural gas prices that led to more drilling. The rig count, now less than one-third of its peak, can be expected to rise again if gas prices rebound, he told the Star-Telegram after his presentation to the council."I think you'll see some price increases two to three years out, which always drives the rig activity," he said.In terms of the number of jobs created directly and in related sectors, the Barnett Shale's impact is now about 5 percent higher than that of aircraft manufacturing and 10 percent greater than air transportation, which includes Dallas/Fort Worth Airport, Dallas Love Field and Fort Worth Alliance Airport, Perryman said.He estimated that the total regional impact of the Barnett Shale will be $11.1 billion in 2011. He said the economic benefits come from exploration, drilling and related activity; pipeline investments and related operations; royalties and lease bonuses; local and state tax revenue; and direct and indirect jobs and increased business activity in the private sector.The impact "goes far beyond just the drilling of new wells," he said. Economic benefits will last "as long as the wells produce, which can be 40 or 50 years or longer."The Barnett Shale will have generated $5.3 billion in taxes for local governments over the 2001-11 study period, including an estimated $730.6 million in 2011. The state will receive estimated benefits of $911.8 million, he said.Bill Thornton, CEO of the Fort Worth chamber, said in a statement that the study was commissioned to see how or whether the economic downturn had affected past projections about the industry."What we found was that it's a bulwark of our economy," Thornton said. Barnett Shale gas drilling was "virtually nonexistent a decade ago and now -- thanks to new technology developed here -- is generating huge benefits in terms of tax revenues, payroll and personal income for our region and the state."Bud Weinstein, associate director of the Maguire Energy Institute at Southern Methodist University, said the Barnett Shale has been a strong backstop against effects of the recession and what he calls the "Great Stagnation.""What's important is that we have an industry in North Texas that basically didn't exist a decade ago," he said. "While gas prices have fallen over the last couple of years and the rig count is way down, and the Barnett may no longer be the biggest shale-producing play in the U.S., the technology of horizontal drilling and hydraulic fracturing has clearly added a new dimension to our economy, added thousands of jobs, and helped cities, counties, school districts."Weinstein also criticized the Obama administration for its lack of focus on natural gas as a future energy source."One of these years, prices are going to go back up, because one of these years, the economy is going to recover, and one of these years, we may have a sensible national energy policy that recognizes the potential of natural gas," he said.Online: www.fortworthchamber .com/BarnettShaleStudy11.pdfStaff writer Scott Nishimura contributed to this report.Jack Z. Smith, 817-390-7724Have more to add? News tip? Tell us
