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Barnett Shale Has Created 100,00 Jobs, $65 Billion In Economic Activity

The Barnett Shale natural gas field has generated $65.4 billion in economic activity and created more than 100,200 jobs over the 24-county area since 2001, according to a new study commissioned by the Fort Worth Chamber of Commerce.

Ray Perryman, founder and president of Waco-based The Perryman Group, presented his findings Tuesday to the Fort Worth City Council. The study examined the impact of Barnett Shale activity on local, regional and state businesses from 2001 to 2011.

“We commissioned the study to see how or if the economic downturn had impacted past projections about the industry,” said Bill Thornton, chamber president and CEO. “What we found was that it’s a bulwark of our economy.”

The economic activity generated by the Barnett Shale includes exploration and drilling, pipeline investments and related operations, royalties and lease bonuses, local and state tax revenues, and direct and indirect jobs and increased business in the private sector, according to The Perryman Group.

Here are some of The Perryman’s Group’s findings:

  • About 38.5 percent of the region’s economic growth since 2001 stems from Barnett Shale activity. That activity constitutes about 8.5 percent of the local business complex.
  • The regional effect of Barnett Shale activity is estimated $11.1 billion in annual output.
  • Barnett Shale-related activity has created 100,268 jobs in the 24-county region, including direct employment by the energy industry and related jobs.
  • Wage and salary employment in the region is about 8.7 percent higher than it would be without the Barnett Shale.
  • Personal income in the region is almost 8.5 percent higher than it would be in the absence of Barnett Shale-related activity.
  • Over the 2001 through 2011 period, local taxing entities received an estimated $5.3 billion in tax receipts. The state received $5.8 billion.
  • This year, the Barnett Shale and related activity will generate around $730 million in additional revenues for counties, cities and school districts in the region. The state will likely receive another $911.8 million, for a total gain in local and state taxes of an estimated $1.6 billion.
  • In 2010, independent school districts in the Barnett Shale region received approximately $2.7 million in royalty payments, $2.5 million in bonuses, and $45.8 million in tax revenue from natural gas and mineral rights.
  • In 2010, oil and gas companies donated at least $9 million to organizations in the Barnett Shale region.

Dalles Business Journal, 27 September 2011