Salsaga Blog

FORT WORTH, Texas, March 28 /PRNewswire/ — On the heels of new U.S. Census Bureau figures that show Dallas/Fort Worth has had the largest population increase of any metropolitan area in the nation, a new study shows that the booming energy sector is fueling the growth.The Barnett Shale is energizing the North Texas economy with activity that is far exceeding expectations, even while the rest of the nation remains mired in an economic slump, according to a new report on the natural gas field’s economic impact. In 2007, activity in the Barnett Shale created 83,823 permanent jobs and pumped more than $8.2 billion into the local economy, a net gain of more than 50 percent over the previous year.The Barnett Shale is one of the largest natural gas fields in the nation, and is unique in that much of it is located in a highly urbanized area. Although the field was discovered in the early 1980s, little activity took place until 2001 after technological improvements in recovery methods and a favorable price environment led to substantial development. The Barnett Shale covers about 5,000 square miles.The study, commissioned by the Fort Worth Chamber of Commerce and authored by economist Ray Perryman, found that the Barnett Shale is having a multiplier effect on virtually all segments of the regional economy. Highlights of the Perryman report include: — The local real estate market is benefiting because of energy companies’ need for commercial and industrial space and increased demand for housing from new employees. The report estimates housing demand has increased by more than 38,000 units since the inception of major drilling activity in the area. — State and local governments are sharing in the gains as well. In the aggregate, Barnett Shale activity is responsible for almost $1.1 billion in annual fiscal revenues. — Companies operating in the Barnett Shale have been good corporate citizens, donating millions of dollars and substantial time to local charities. In fact, charitable giving among the energy companies surveyed more than tripled in the last year. — Overall activity in the Barnett Shale has not yet peaked and is growing faster than expected. Production has reached an estimated level of 3.7 billion cubic feet per day, accounting for 4.3 percent of total U.S. production. Projections are that production will increase to between 6.5 and 9.7 billion cubic feet per day by 2014-15.Perryman concludes that previous estimates of the future impact of the Barnett Shale have proven to be far below the actual effect of exploration, drilling, and production on regional business activity.”Last year, we projected that the economic impact of the Barnett Shale would increase by a rate of about 20 percent per year. But it was absolutely astounding to see that, in reality, it expanded by more than 50 percent in 2007,” said Perryman, who spearheaded the report, “Drilling for Dollars: An Assessment of the Ongoing and Expanding Economic Impact of Activity in the Barnett Shale on Fort Worth and the Surrounding Area.”"Although the national economy is definitely slowing, activity in the Barnett Shale is insulating Fort Worth and the surrounding region and serving as a catalyst for ongoing economic vitality.”Perryman’s report examined the economic impact of the Barnett Shale on the 18 Texas counties with the most drilling activity: Bosque, Clay, Cooke, Comanche, Denton, Eastland, Ellis, Erath, Hill, Hood, Jack, Johnson, Montague, Palo Pinto, Parker, Somervell, Tarrant and Wise. The Barnett Shale is a major economic generator in these areas, accounting for 8.1 percent of gross product, 7.8 percent of personal income and 8.9 percent of employment.The release of the report coincides with the second annual Barnett Shale EXPO, the largest trade show ever devoted to the Barnett Shale energy industry. Scores of local chambers, energy companies, expert speakers and more than 160 exhibitors will be converging on the Fort Worth Convention Center on Saturday, March 29th to provide information and answer questions about the natural gas field.”Fort Worth has emerged as a very diversified economy that includes everything from manufacturing to tourism,” Bill Thornton, president and CEO of the Fort Worth Chamber of Commerce. “The Barnett Shale now fuels the region as well, both by injecting direct revenues into the economy and through all the charitable giving that has helped enhance our quality of life.”Six major energy companies, comprising 81 percent of total Barnett Shale production, responded to a seven-page questionnaire prepared by The Perryman Group as part of the study. The firms were asked to break down by counties the number of full-time employees, staffing needs, annual payroll, operating costs, current and future production levels, charitable contributions and the amount of state and local taxes paid. To see the full report, go to Contact: Andra Bennett, 817-336-2491, ext. 265, Ellen Sterner-Sedeno, 214-546-8893, The Perryman Group

Filed under: Energy |