Cline Shale creates $14.5B impact, Eagle Ford with $61BCline Shale creates $14.5B impact, Eagle Ford with $61Bhttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=53352014-01-09T07:25:00Z2014-01-08T00:00:00Z

TEXAS - The oil and gas industry had a $14.5 billion impact on the Cline Shale region in 2013, according to The University of Texas at San Antonio’s (UTSA) Institute for Economic Development. The industry supported 21,450 jobs with $1 billion in salaries and benefits to workers.

The core counties for the study were Fisher, Glasscock, Howard, Irion, Martin, Mitchell, Nolan, Reagan, Scurry and Sterling, where around 854 vertical wells and 57 horizontal or directional wells were completed in 2012.

The study forecasts that by 2022 — depending on a variety of factors that include oil prices and well productivity — the annual economic output could be as low as $7.6 billion or as high as $34.3 billion.

Neighboring counties, including Brown, Coke, Coleman, Runnels, Taylor and Tom Green, don’t have much drilling activity, but have had a lot of construction and new headquarters because of the boom.

The oil and gas activity generated $472 million in state revenue in 2013, including $187.4 million in severance taxes, and $447 million in local government taxes.

In 2013, UTSA estimates the Eagle Ford had a $61 billion impact and supported 116,000 jobs across 20 counties in South Texas.

One of the long-term challenges for both West and South Texas will be to diversify their economies, but it may be easier for South Texas, according to Thomas Tunstall, research director with the Institute for Economic Development.

“In West Texas, it’s mostly scrub, the two interstates and it takes a long time to get out there. It makes it harder for them to diversify,” said Tunstall.

Midland Reporter-Telegram
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