A new economic impact study of the fiscal contributions of the Barnett Shale was released today. The study, commissioned by the Fort Worth Chamber of Commerce and conducted by The Perryman Group (TPG) of Waco, reports that despite reduced drilling and fluctuating natural gas prices, Bartnett Shale production increased by $700 million since the last study was conducted in 2011.

The study of the fiscal contributions of the Barnett Shale finds that the current regional gains in business activity and tax receipts related to oil and gas exploration include $11.8 billion in gross product per year and more than 107,650 permanent jobs.

The full 172-page study is available to the public, as well as the Chamber of Commerce press release below.

The Perryman Group also recently released a study concerning the proposed hydraulic fracturing ban in Denton, Texas, and the impact the ban will have on the economy. Read more about the implications of the proposed ban and see The Perryman Group's full report here.

Study: Barnett Shale endures as a major economic engine, poised for global growth in energy demand

Annual gross product for region continues to top $11 billion

FORT WORTH – A new economic impact study of the fiscal contributions of the Barnett Shale finds that the current regional gains in business activity and tax receipts related to oil and gas exploration include $11.8 billion in gross product per year and more than 107,650 permanent jobs.

Commissioned by the Fort Worth Chamber of Commerce and conducted by The Perryman Group (TPG) of Waco, the Sept. 2014 impact study shows that despite reduced drilling and fluctuating natural gas prices, production remains stable and the annual gross product has in fact increased by $700 million since the last such study by Perryman in 2011, when the figure was at $11.1 billion annually.

“Even with the recession and the drop in {natural} gas prices, the production and job levels have remained stable and provide ongoing benefits to the region and the state,” said Ray Perryman, TPG founder and president. “The energy produced from the Barnett Shale is an important domestic fuel source for the nation with significant strategic and economic value.

“Exploration activity for both natural gas and oil is likely to increase in the future as price and global market conditions change,” he added. “A number of things could move the numbers upward: greater LNG capacity development, infrastructure to allow more uses for natural gas, higher CNG fleet usage, global demand, volatile foreign political situations, tighter emission regulations for utilities and technology breakthroughs.”

In annual tax receipts alone, the economic activity in the relevant region of 25 counties included in the Barnett Shale generates an estimated $480.6 million to local government entities (including cities, counties and school districts) and $644.7 million to the state of Texas.

For the state as a whole, the current impact of the Barnett Shale is estimated to be $12.8 billion in annual gross product and about 115,000 permanent jobs. The tax receipts statewide include $517.3 million to local governments and $686.3 million annually.

“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. “Hundreds of companies based here — either those in the energy industry or that provide services to the industry—are growing their employment levels again.”

Since 2001, Perryman estimates almost 40 percent of incremental growth in the regional economy has been the result of Barnett Shale activity.

More than 15 trillion cubic feet (TCF) of natural gas have been produced from about 18,000 wells in the Barnett Shale since 2001, up 66 percent from 9 TCF in 2011. (In other words, it took 10 years to produce 9 TCF, but only three years to produce another 6 TCF.) Natural gas continues to flow from thousands of wells, although only 19 rigs were operating in the Barnett as of September 1, 2014.

The Barnett Shale covers about 5,000 square miles, but approximately 84 percent of the jobs are concentrated in four “core” counties: Denton, Johnson, Tarrant and Wise.

As a prelude to the full study’s publication, the Denton County results were released in July as some residents in the City of Denton petitioned the City Council to adopt a ban on hydraulic fracturing, the drilling technology that allows substantial natural gas recovery from shale plays. The City Council opted to place the measure for voter consideration on November 4.

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Baseline price projections from the Energy Information Administration were used by TPG.

A full copy of the 172-page TPG 2014 Economic Impact Study may be found online here: www.fortworthchamber.com/chamber/docs/BSISeptember2014.pdf

About the Fort Worth Chamber

The Fort Worth Chamber of Commerce, with 2,000 member businesses in the DFW region, has consistently been recognized as one of the nation’s top economic development organizations in the country. Through business-to-business marketing, educational events, economic development, workforce development and government advocacy, the Fort Worth Chamber assumes a leadership role in making Fort Worth, the 17th-largest city in the U.S., a premier location in which to live, work and do business. For more information, please contact the Fort Worth Chamber of Commerce at (817) 336-2491 or visit www.fortworthchamber.com.

About TPG

TPG’s practice areas include economic modeling and forecasting, litigation and regulatory support, business valuation, economic development and strategic planning, and impact assessment. The firm also provides market and industry analysis, statistical modeling and analysis, economic forecasts, survey and demographic studies, economic statistics, research and information, and feasibility studies and business plans, as well as speeches, presentations, conferences, and other appearances.