Barnett shale boosts Texas economic activity
The Barnett shale remains a driving economic force in North Texas, even though the number of active rigs has declined in recent years.
An economic impact study released by The Perryman Group (TPG) found the shale play has created more than 107,650 permanent jobs and generates $11.8 billion in gross product/year for the North Texas region. Annual gross product increased by $700 million from 2011.
"Even with the recession and the drop in gas prices, the production and job levels have remained stable and provide ongoing benefits to the region and the state," said Ray Perryman, founder and president of TPG. The study was commissioned by the Fort Worth Chamber of Commerce.
Since 2001, more than 15 tcf has been produced from about 18,000 wells in the Barnett shale. Perryman estimates almost 40% of incremental growth in the regional economy during that time resulted from the play.
Data from the Texas Railroad Commission shows Barnett shale production averaged 4.9 bcfd in the first half of 2014, down from a peak of 5.7 bcfd in 2012. Twenty-five rigs were active in the play in mid-September, down from a peak of 83 rigs in early 2011, Baker Hughes data show.
In the 25-county Barnett shale region, the play generates $480.6 million in annual tax receipts for local government entities-including cities, counties, and school districts-and $644.7 million/year for the State of Texas.
The study found 84% of jobs created by the play are concentrated in four counties: Denton, Johnson, Tarrant, and Wise.
