The Barnett Shale generates $11.8 billion in gross product per year and 107,650 permanent jobs for North Texas, according to economist Ray Perryman.
Despite reduced drilling and relatively low natural gas prices, the value of the Barnett Shale has increased by $700 million since Perryman’s last study in 2011.
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Perryman, the founder of The Perryman Group, based in Waco, was commissioned by the Fort Worth Chamber of commerce to look at the economic impact of the formation that spreads over 25 counties, including Tarrant and Denton counties.
Annual tax receipts generate $480.6 million to local government entities and $644.7 million to the state of Texas.
“Natural gas exploration and production continues to provide massive benefits in terms of tax revenues, jobs, payroll and personal income throughout the North Texas region,” said Bill Thornton, president and CEO of the Fort Worth Chamber of Commerce. “Hundreds of companies are based here—either those in the energy industry or that provide services to the industry—are growing their employment levels again.”
The Barnett Shale produces mostly dry natural gas in the Fort Worth and Denton areas while the northwest regions produce oil and natural gas liquids.
“Exploration activity for both natural gas and oil is likely to increase in the future as price and global market conditions change,” Perryman said.
Policies or other changes that could increase demand for drilling in the Barnett Shale include:
Greater liquid natural gas capacity development (meaning the ability to export domestic natural gas overseas).
Infrastructure to allow more uses for natural gas
More fleets converting to compressed natural gas
Volatile political situations overseas
Tighter emission regulations for utilities
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Nicholas covers the energy, manufacturing, aviation and transportation beats for the Dallas Business Journal. Subscribe the Energy Inc. newsletter
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