New UTSA study stresses diversification in economic development for oil boom towns
This olive ranch in Carrizo Springs is helping diversifying the town's economy.

This olive ranch in Carrizo Springs is helping diversifying the town's economy.
(Nov. 16, 2015) -- In a new study published in The Journal of Regional Analysis & Policy, Thomas Tunstall, research director of the UTSA Institute for Economic Development, describes how regions affected by the oil boom in the Eagle Ford Shale can avoid becoming ghost towns after the revenues dry up.
“There may be 1,000 or more ghost towns in Texas,” Tunstall said. “We have to figure out a way to keep the communities that are still here viable.”
In his new study, Tunstall looks at several Eagle Ford Shale counties and towns whose fortunes have been made since the oil boom in the past five years. And though the area could continue producing at a high rate for years, the key to sustaining an economy in previously sleepy towns is to use that extra money to diversify the local economy. That way, when the price of oil falls or, far into the future, the oil dries up, the town remains economically stable.
“We saw what happened to Houston in the 1980s when oil prices dropped,” Tunstall said. “In a lot of cases, people were packing up and leaving. It’s completely avoidable.”
He used the example of Gonzales, Texas as a town that prospered from oil production. It has also diversified by making itself a tourist destination as the birthplace of the Texas Revolution.
“One way to do it is to look at the reason the town is there,” he said. “Sometimes a town becomes a ghost town because a highway or rail line bypassed it, or in many cases farming community became unnecessary because of the widespread mechanization of agriculture.”
Some towns in the Eagle Ford Shale have looked into becoming Free Trade Zones, allowing manufacturing companies to come in and operate without tariffs. Tunstall’s colleagues in the UTSA Institute for Economic Development also analyzed the town of Asherton, Texas that is diversifying by taking advantage of a crop that hadn’t been previously singled out as a commodity in Texas: olives. The state now produces about 54 tons per year. In 2002, it wasn’t producing any.
“Gonzales, Karnes City and Pleasanton have all done a great job of fostering economic development,” he said. “Some cities haven’t, either because their governments just aren’t in sync or they’re just disorganized. We hope that these cities take the opportunity to steward the additional tax revenue they’ve received, because nothing lasts forever.”
-----------------------------Read Thomas Tunstall’s study in Regional Analysis & Policy.
Learn more about the Institute for Economic Development’s Eagle Ford Shale Community Development Program.
Learn more about the UTSA Institute for Economic Development.
Connect online at Facebook, Twitter, YouTube and Instagram.
Events
Tour the new Blackboard homepage, navigation, and features for the upcoming semester. The agenda includes an Introduction to Blackboard Cloud, a tour of the new Blackboard homepage and navigation; review improvements to course management, and a question and answer session.
Virtual EventHelp us welcome back Campus Recreation with our VIP Day. Sign up for your social-distanced tour where you will get to experience some of the incredible programs and offerings we are bringing you this semester.
Recreation Center, Main CampusThe Welcome Back Social is a great way to meet new people and make new friends. You can also win some prizes! Playfair is a high-spirited, high-energy event that allows students to interact with each other and laugh with each other and feel a part of an exciting campus community. This year, we feature Playfair Online! as part of the event.
Virtual EventJoin us to kickoff the spring semester! We will have events happening all week and please participate in all that you can. Learn about upcoming opportunities within your academic department in virtual sessions with faculty, alumni, and student organizations. This is a great way to get involved in the UTSA COE/CACP community.
Virtual EventThe Adobe Creative Campus Kickoff will introduce students to Adobe software and how they can use it to produce professional content for their courses. Students will learn about UTSA’s Adobe Creative Campus program and how they can access the software. Time permitting, there will be an overview of Adobe Creative Cloud.
Virtual EventWant to study abroad but aren't sure where to start? Our Study Abroad Information Session is a great way to hear about the options available to those interested in pursuing a global academic experience! Here you can learn about program types, scholarships, and other essential information!
Virtual EventTune in to learn about the best picks for having an easy and fun digital Spring. We will be introducing you to the new Blackboard experience and showing you how to access essential digital tools that are free! In this session, you’ll find resources that are UTSA exclusive.
Virtual Event