Texas Tech study shows economic impact of Texas pipelines
Published: Thu, 06/15/23
Texas Tech study shows economic impact of Texas pipelines
World Pipelines
Published by Sara Simper, Editorial Assistant, World Pipelines
The Texas midstream industry is a powerhouse that contributes to the state’s economic output, jobs and government revenues, according to a new study conducted by the Center for Energy Commerce at Texas Tech University and commissioned by the Texas Pipeline Association (TPA).
The 2022 ‘Analysis of the Current and Future Economic Impact of the Texas Oil and Gas Pipeline Industry’ study shows that through ongoing operations and construction in 2022 alone, the Texas oil and gas pipeline industry provided:
- More than US$60.5 billion in economic output.
- More than US$34 billion in additional gross state product.
- Nearly US$3.6 billion in state and local government revenues.
- More than 234 000 jobs.
- An estimated US$12 250 in property tax revenues generated per mile of a pipeline for a typical Texas county.
The strength of the midstream industry is expected to continue. According to the study, over the next 40 years the pipeline industry is conservatively expected to generate cumulative economic impacts of:
- US$1.86 trillion in economic output.
- US$1.05 trillion in additional gross state product.
- US$110.34 billion in state and local government revenues.
- Nearly 525 000 jobs.
- US$377 000 in cumulative property tax revenues generated per mile of a pipeline for a typical Texas county.
“The 2022 ‘Analysis of the Current and Future Economic Impact of the Texas Oil and Gas Pipeline Industry’ study shows that the Texas midstream industry is an economic powerhouse, delivering billions of dollars to state and local coffers and providing hundreds of thousands of well-paying jobs,” said Thure Cannon, President of TPA. “Without the network of natural gas gathering and transmission lines and storage facilities, Texas would not only be deprived of the vital fuels and hydrocarbons it needs to grow and thrive, but also the revenues, taxes and jobs that bolster the state’s economy.”