The pipeline industry created a windfall for Texas’ economy in 2013, fueled by an oil and gas boom that’s driving demand for more infrastructure, according to a report for a trade group.
The industry provided $18.7 billion in gross state revenue and sustained more than 165,000 jobs, according to a study commissioned by the Texas Pipeline Association conducted at Texas Tech University.
Technological advances in drilling and well completion have unlocked more hydrocarbons from dense rock formations, causing a surge in Texas production and driving a need for additional infrastructure to transport the hydrocarbons from wells to refineries.
“Without pipelines, our energy production will decline … that production would go somewhere else,” Thure Cannon, president of the Texas Pipeline Association, said in an interview with FuelFix Thursday.
The report draws attention to the midstream industry, underscoring the critical role pipelines play in maintaining the substantial oil and gas investments that have strengthened the state’s economy, Cannon said.
Ongoing operations and construction of new pipeline provided an estimated economic impact of $33 billion last year alone, the study found. Increased tax revenue helped inject an additional $1.6 billion in state and local government revenues, bolstering the economies of communities that are home to such projects.
And the future growth potential looks bright in Texas, which has the nation’s highest rig count and is home to several confirmed shale plays and reservoirs that are expected to result in decades of drilling activity and production, the study noted.
According to the study’s conservative estimates, pipeline operations and construction will contribute $212 billion in additional gross state product and $19.5 billion in state and local government revenues by 2024.