(Dec. 16, 2013) -- Development of oil and natural gas in a 16-county region of West Texas added more than $14.5 billion in total economic impact during 2012, according to a study released today by the Center for Community and Business Research in The University of Texas at San Antonio Institute for Economic Development. Additionally, the region supported 21,450 full-time jobs for workers in oil and gas, drilling, support operations, pipeline construction, refineries and petrochemicals.
Highlights of the UTSA study concluded that in 2012 the region generated:
The UTSA Center for Community and Business Research was contracted by the West Texas Energy Consortium (WTxEC) to estimate the economic impact of the oil and gas industry on certain counties in the consortium's area during 2012, and create a forecast for the year 2022. The consortium's area consists of the Concho Valley, West Central Texas and Permian Basin regions.
The region has a long history of oil and gas activity and, in recent years, has been affected not only by renewed attention in vertical wells but also new techniques such as horizontal drilling coupled with hydraulic fracture stimulation. The study estimates that nearly 854 vertical wells and 57 horizontal wells (including 12 directional wells) were completed in 2012.
"This baseline study is intended to help communities in West Texas plan and prepare for the prospect for increased oil and gas production in the area down the line. For many counties, activity is clearly in the early stages," said Thomas Tunstall, research director at the UTSA Institute for Economic Development and principal investigator for the study.
While taking into consideration low and high-price scenarios, the impact in 2022 could vary widely. But, UTSA estimates growth in full-time jobs supported by the oil and gas industry could potentially increase by 42.2 percent from 2012 to 2022. This study estimates a scenario where low oil prices in the future could produce an output as low as $7.6 billion, and where high oil prices could see enormous growth as high as $34.3 billion.
The ranges of these figures are broad due to high variability in the prices of oil and gas, the challenges of forecasting future oil and gas activities, changes in the number of wells per rig and changes in productivity per well.
The 16-county area researched encompassed various shales including the Cline Shale, a 70-mile wide by 140-mile long formation that stretches along 14 counties in West Texas. The formation produces natural gas, condensate, oil, and natural gas liquids, with margins more favorable than other shale plays.
The Center for Community and Business Research in the UTSA Institute for Economic Development conducts primary research on community and business development in South Texas and the border region. In addition to the study released today, the center has published Economic Impact of the Eagle Ford Shale (March 2013), Economic Impact of the Eagle Ford Shale (May 2012), Strategic Housing Analysis (July 2012, in partnership with the UTSA College of Architecture and UTSA Center for Urban and Regional Planning Research), Eagle Ford Shale Impact for Counties with Active Drilling (October 2012) and its Workforce Analysis for the Eagle Ford Shale (October 2012).
About the IED
The University of Texas at San Antonio (UTSA) Institute for Economic Development is dedicated to creating jobs, growing businesses and fostering economic development. Its 12 centers and programs provide professional business advising, technical training, research, and strategic planning for entrepreneurs, business owners and community leaders. Its programs serve San Antonio, the Texas-Mexico border area as well as regional, national and international stakeholders. Together with federal, state and local governments, and private businesses, the UTSA Institute for Economic Development fosters economic and community development in support of UTSA's community engagement mission.
The University of Texas at San Antonio (UTSA) is an emerging Tier One research institution specializing in health, energy, security, sustainability, and human and social development. With nearly 29,000 students, it is the largest university in the San Antonio metropolitan region. UTSA advances knowledge through research and discovery, teaching and learning, community engagement and public service. The university embraces multicultural traditions and serves as a center for intellectual and creative resources as well as a catalyst for socioeconomic development and the commercialization of intellectual property -- for Texas, the nation and the world.
The UTSA community is encouraged to donate blood and save a life. Donors will also receive a free t-shirt.
H-E-B University Center parking lot, Main Campus
Dr. Stephanie Westney (violin) presents a concert of Mozart compositions as performed by herself and other talented musicians from the university and surrounding area. This concert is free and open to the public.
Arts Building, Recital Hall (ARTS 2.03.02), Main Campus
The Student Center for Community Engagement and Inclusion annually hosts a Volunteer Opportunities Fair to allow students, faculty and staff to learn about volunteer and service-learning opportunities in the San Antonio area.
University Center, 1st floor corridor, Main Campus
The University of Texas at San Antonio, the San Antonio Express-News and KLRN-9 will host a town hall meeting to explore policy related to sanctuary cities. The event, Sanctuary Cities: State rules versus Local Control, is free and open to the public.
Buena Vista Street Building Theater (BVB 1.326), Downtown Campus
Join the conversation about the experiences of military-connected families in transition. Free parking in the Cattleman Square (along Buena Vista Street). The event is free and open to the public.
Frio Street Building, Riklin Auditorium (FS 1.406), Downtown Campus
School district superintendents and other district leaders responsible for bilingual and ESL programs' administration and accountability learn about cultural literacy, language, and diversity in the community.
Recruiters from across the STEM fields will be present with full-time, part-time and/or internship opportunities. Dress professional and bring plenty of resumes.
Convocation Center, Main Campus
Recruiters from across all fields looking to hire students with all different majors will be present at this event looking to hire for their full-time and/or internship opportunities. Professional dress is required. Bring plenty of resumes.
Convocation Center, Main Campus
The Civic Engagement Summit is an opportunity to celebrate and showcase UTSA's commitment to civic engagement through a myriad of efforts by students, faculty and staff, highlighting the significant ways the university impacts the local community.
H-E-B University Center Ballroom, (HUC 1.104), Main Campus
The Department of Demography presents Dr. Rodolfo Cruz Peñeiro of El Colegio de la Frontera Norte. His presentation is titled "Changes in the Migratory Dynamics of the Northern Mexican Border." This event is free and open to the public.
Monterrey Building, (MNT 3.240), Downtown Campus
Grab your friends, family, kids and dog for this annual fun run on the UTSA Main Campus benefititng the UTSA Alumni Association.
Convocation Center, Main Campus
The University of Texas at San Antonio is dedicated to the advancement of knowledge through research and discovery, teaching and learning, community engagement and public service. As an institution of access and excellence, UTSA embraces multicultural traditions and serves as a center for intellectual and creative resources as well as a catalyst for socioeconomic development and the commercialization of intellectual property - for Texas, the nation and the world.
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