HomeNewsTexas Pipeline Association Study Shows Economic Impact of Texas Pipelines

Texas Pipeline Association Study Shows Economic Impact of Texas Pipelines

10/27/2020

(P&GJ) — Through ongoing operations and construction in 2019 alone, the Texas oil and gas pipeline industry provided more than $48.6 billion in economic impact to the state, according to a study commissioned by the Texas Pipeline Association (TPA). 

The updated study conducted by the Center for Energy Commerce at Texas Tech University also showed that the industry supported more than 238,000 high-paying jobs, contributed an additional $29.3 billion in additional gross state product, and injected more than $2.7 billion in state and local government revenues.

The study also found that of those state and local revenues, a typical Texas county receives an estimated $12,350 in property taxes per year for each mile of pipeline located in the county.

“It is clear from this Update to the Economic Impacts of the Texas Oil and Gas Pipeline Industry study that pipelines deliver the robust economic benefits that come from the continued growth and expansion of the oil and gas industry,” said Thure Cannon, president of TPA.

The study also shows that over the next 40 years, the jobs impact attributable to the Texas pipeline industry will reach more than 492,000.

In addition, the industry is projected to generate cumulative economic impacts of:

  • $1.49 trillion in economic output;
  • $903 billion in additional gross state product; and
  • $84 billion in state and local government revenues.

The study also estimates that cumulative property tax revenues per mile will generate $380,000 for a typical Texas county over the next 40 years.

Even with the changes in prices and industry cycles experienced over the last several years, the innovations and discoveries in both plays and technologies have given rise to increased production of oil and gas and have led to additional demands on the pipeline system.

Other highlights of the study include:

  • Since the original Texas Tech TPA-commissioned economic impact study, which focused on 2013 figures, the Texas pipeline industry’s total output impact from operations and construction has increased by 47 %, total employment by 40 %, and state and local government revenues by 68 %
  • Pipeline mileage in Texas increased 13.16 % from 2013 – 2019, with an
  • average annual growth rate of 2.08 %
  • The number of employees in Texas whose employment is directly related to pipeline transportation increased by 2.68 % per year from 2013 – 2019
  • The price of West Texas Intermediate (WTI) in 2013 was $98.97/bbl and $57/bbl in 2019; with the price of natural gas (Henry Hub) at $3.73 in 2013 and $2.56 in 2019 per million BTU
  • Texas rig count was 843 at the end of the year in 2013 and 406 at the end of 2019
  • Texas Real Gross Domestic Product grew at an annual rate of 3.35 % from 2013 – 2019
  • The value added to Texas Real Gross Domestic Product accounted for by the economic impact generated from the Texas pipeline industry was 1.2 % in 2013 and over 1.6 % in 2019

Visit the study online for more information.

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