Recent advances such as hydraulic fracturing, horizontal drilling, as well as new discoveries, increased exports, and infrastructure improvements will lead to less volatility, larger scale drilling programs, increased cycle times, and a larger permanent workforce and population. These changes and their associated spin-off effects will lead to myriad economic benefits, including increased output (real gross product), greater personal income, new (and higher paying) jobs, additional retail sales, and enhanced tax revenues. The resulting growth brings enormous potential benefits, but also has profound implications for housing, infrastructure, education, health & wellness, and quality of place. Proactive efforts to prepare for the coming growth can position the area to emerge stronger and more prosperous in the future.
The manufacturing statistics for Texas in March were driven down by various factors associated with COVID-19 and the oil and gas industry. Dr. Perryman explains the effects.
It now appears the Permian Basin will be the largest oil and gas field in history. Dr. Perryman says by 2020, the Permian will produce seven to eight million barrels per day.
The latest numbers on oil production reveal the US is now producing 12 million barrels of oil per day, and Dr. Perryman says Texas is at the forefront.
GE and Baker Hughes are joining their oil and gas businesses to create a powerful player in the energy sector. Dr. Perryman takes a look at what it means.
We estimate that the Texas oil and gas business and related industries generate nearly two million jobs around Texas when multiplier effects are considered (as described in a recent column). The energy sector includes oil and natural gas exploration and drilling, as well as the industries required to produce, transport, transform, and deliver it to markets throughout the world.
For well over a century, the vast reserves of oil and natural gas in Texas have contributed to business activity and job creation. We recently took a close look at the overall impact of the sector on business activity across the state and found that it directly or indirectly supports about one of every six Texas jobs.
Things are definitely looking up in the oil and gas business, with more rigs, more jobs, and more spending. The economic benefits of this activity are rippling through the economy, and that is definitely good news. It looks like we may have turned the corner back toward expansion, though there are some signals that the recovery may face some challenges.