It’s no secret that Texas is oil country — and a new analysis found the energy sector directly or indirectly supports about one in every six jobs in the state.
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Analysts from The Perryman Group, a Waco-based economic research firm, used models developed by president and CEO Ray Perryman to examine the total economic impact of the energy sector. Their analysis found gains in “just about everything” that could be traced to oil and natural gas.
“Texas has developed a deep network of suppliers to the industry, which enhances its importance,” Perryman wrote.
The total annual economic benefits of the Texas energy sector and related industries include a gross product of $198.8 billion and more than 1.9 million jobs, including multiplier effects, Perryman said.
Perryman also pointed to the record-high level of U.S. crude oil production, which Reuters reported will hit 12.36 million barrels per day this year. That has led to a reduced need for imports in the U.S. and new investment in related infrastructure and industries like pipelines, storage and shipping, he said.
Production has risen by about 500 percent since 2010, according to Perryman. That’s largely thanks to new methods of extracting oil from areas it previously couldn’t be retrieved. An estimated 59 percent of U.S. crude oil produced in 2018 came from shale, where extracting oil used to not be cost-effective, according to the U.S. Energy Information Administration.
Texas has driven much of the oil growth in the U.S.
“Growth in production in the Permian Basin and other parts of Texas is creating a global transformation of petroleum markets,” Perryman wrote, adding that “this amazing resource will continue to fuel (pun intended) economic expansion and opportunity.”