Texas has 576,000 jobs tied to unconventional oil and gas development and its economic ripples, IHS Global Insight says in a report today. It approaches half the nearly 1.3 million jobs nationwide associated with unconventionals in 16 producing states, IHS said. It's the group's second study of the economic impact of shale development and the first do to a state-by-state count.
"No other state approaches Texas in the number of jobs tied to unconventional oil and gas or the economic revenue contributions from the activity. In addition to jobs directly related to oil and gas production, the state's professional, scientific and technical services; construction; and oil and gas extraction industries are among the largest source of direct and supply chain (indirect) jobs," the consultant's release on the study said.
It said unconventional energy activity "will also account for more than $101 billion in value added contributions to Texas gross state product (GSP) in 2012, a figure that will increase to $169 billion in 2020. The study estimates that unconventional oil and gas activity in Texas will generate more than $22 billion in federal, state and local revenues in 2012, or more than $790 billion cumulatively through 2035."
"The unconventional oil and gas revolution is having a bigger impact across the country, including in non-producing states, than is generally recognized," said Daniel Yergin, vice chairman of IHS and author of two highly-regarded histories of oil and gas development, mostly recently The Quest.
The study said the top 10 producing states for unconventional oil and gas-related activity — Texas, North Dakota, California, Colorado, Oklahoma, Pennsylvania, Utah, Louisiana, Ohio, and Arkansas— "will contribute nearly 1.2 million jobs, almost $47 billion in government revenues, and approximately $178 billion in value added contributions to their state economies this year."
A link to the study is here.
-- Jim Fuquay