Through ongoing operations and construction in 2013 alone, Texas’ oil and gas pipeline industry provided $US33 billion in economic impact, supported more than 165,000 high-paying jobs, contributed an additional $US18.7 billion in gross state product, and injected $US1.6 billion in state and local government revenues, according to the report.
“Texas’ pipeline industry is a key component of our energy infrastructure and our nation’s ever-growing energy needs,” said Texas Pipeline Association (TPA) President Thure Cannon.
“And, due to a dramatic increase in the state’s oil and gas production, the demand for additional pipelines is expected to continually increase in the coming years,” explained Mr Cannon.
“The communities that are home to pipeline projects are perfectly poised to see an economic benefit from the industry in terms of more jobs and increased tax revenue.”
The report shows that while pipelines play a significant role in value creation and economic sustainability in the state, they also lead to a number of non-core but very critical supply chain activities such as the construction of pipelines, processing plants, meter stations, compressors, fractionators and equipment manufacturing.
The second-tier benefits of the pipeline industry flow directly into the operations of suppliers, both wholesale and retail, and include real estate and housing, and financial services, and provide a positive boost for local economies.
“The pipeline industry verifiably underpins the exploration and production industry, and its impact on state funds is not only substantially measurable but growing in scale,” said Texas Tech University Professor of Energy Economics Dr Bradley Ewing.
Other highlights of the study include:
- Conservative economic estimates conclude that in the period form 2014-2024, the pipeline industry will contribute over $US374 billion in total economic output, sustain 171,000 high-paying jobs annually, contribute over $US212 billion in additional gross state product, and inject $US19.5 billion in state and local government revenues.
- Wells in a confirmed shale play exhibit a repeatable, statistical distribution offering predictable performance in a given geological subset.
- The state of Texas has the greatest rig count of any US state or world region (48 per cent of the total rigs running in the US and 25 per cent of the total world rig count).