west texas region 10 county level impacts of oil and gas phase 2

Upload: texas-public-radio

Post on 14-Oct-2015

789 views

Category:

Documents


0 download

DESCRIPTION

Ten counties in a West Texas oil and gas play will produce $20.5 billion in economic output in 2022, according to a new study released today by the University of Texas at San Antonio (UTSA) Institute for Economic Development.UTSA Institute for Economic Development Research Director Thomas Tunstall released the study, which describes the economic output of Fisher, Glasscock, Howard, Irion, Martin, Mitchell, Nolan, Reagan, Scurry and Sterling Counties.Additional forecasts for the year 2022 include:30,540 full-time jobs supported $1.8 billion in salaries and benefits paid to workers $9.4 billion in gross regional product

TRANSCRIPT

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    1/191

    1

    West Texas Energy Consortium Region: TenCounty-Level Economic Impacts of Oil andGas ActivitiesCenter for Community and Business Research at The University of Texas at San Antonios Institute for

    Economic Development

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    2/191

    2

    Acknowledgements

    This report was performed by the University of Texas at San Antonio Institute for Economic

    Developments Center for Community of Business Research. The project was supportedwith funding

    from the West Texas Energy Consortium. Any finding, conclusions or opinion are those of the authors

    and not necessarily those reflected by The University of Texas at San Antonio or the West Texas Energy

    Consortium.

    Javier Oyakawa, M.A., M.Sc., Lead Investigator

    Thomas Tunstall, PhD, Principal Investigator

    Research Assistants: Gina Conti, Hector Torres, Ricardo Avalos, Jason Hernandez, Binbin Wang, John

    Rodriguez, Neeraj Ravi, Feihua Teng, and Christina Valerino.

    Hisham Eid, GIS specialist

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    3/191

    3

    Contents

    1.Acknowledgements ................................................................................................................................... 2

    2. Executive Summary .................................................................................................................................. 8

    3. Introduction .............................................................................................................................................. 17

    The West Texas Energy Consortium and the Severance Tax ................................................................. 17

    4. Fisher County .......................................................................................................................................... 20

    Overview of Fisher County ....................................................................................................................... 20

    Per Capita Income, Population, and Industries ........................................................................................ 21

    Population Growth Comparison ............................................................................................................... 22

    Job Growth Comparison .......................................................................................................................... 23

    Natural Resource and Mining Employment Growth Comparison ............................................................ 24 Location Quotients for Natural Resource and Mining Employment ......................................................... 25

    Population Projections ............................................................................................................................. 27

    Total Employment Forecast for Fisher County in 2014-2022 .................................................................. 28

    Educational Attainment ............................................................................................................................ 29

    Amounts Subject to State Sales Tax........................................................................................................ 30

    Employment Changes .............................................................................................................................. 31

    Commuting Patterns ................................................................................................................................ 32

    Economic Impacts in 2012 ....................................................................................................................... 33

    Economic Impacts in 2022 ....................................................................................................................... 34

    5. Glasscock County ................................................................................................................................... 35

    Overview of Glasscock County ................................................................................................................ 35

    Per Capita Income, Population, and Industries ........................................................................................ 36

    Population Growth Comparison ............................................................................................................... 37

    Job Growth Comparison .......................................................................................................................... 38

    Natural Resource and Mining Employment Growth Comparison ............................................................ 39

    Location Quotients for Natural Resource and Mining Employment ......................................................... 40

    Population Projections ............................................................................................................................. 42

    Total Employment Forecast for Glasscock County in 2014-2022 ............................................................ 43

    Educational Attainment ............................................................................................................................ 44

    Amounts Subject to State Sales Tax........................................................................................................ 45

    County Budgets ........................................................................................................................................ 46

    Employment Changes .............................................................................................................................. 47

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    4/191

    4

    Commuting Patterns ................................................................................................................................ 48

    Economic Impacts in 2012 ....................................................................................................................... 49

    Economic Impacts in 2022 ....................................................................................................................... 50

    6. Howard County ........................................................................................................................................ 51

    Overview of Howard County .................................................................................................................... 51Per Capita Income, Population, and Industries ........................................................................................ 52

    Population Growth Comparison ............................................................................................................... 53

    Job Growth Comparison .......................................................................................................................... 54

    Natural Resource and Mining Employment Growth Comparison ............................................................ 55

    Location Quotients for Natural Resource and Mining Employment ......................................................... 56

    Population Projections ............................................................................................................................. 58

    Total Employment Forecast for Howard County in 2014-2022 ................................................................ 59

    Building Permits ....................................................................................................................................... 60

    Educational Attainment ............................................................................................................................ 61

    Amounts Subject to State Sales Tax........................................................................................................ 62

    County Budgets ........................................................................................................................................ 63

    Employment Changes .............................................................................................................................. 64

    Commuting Patterns ................................................................................................................................ 65

    Economic Impacts in 2012 ....................................................................................................................... 66

    Economic Impacts in 2022 ....................................................................................................................... 67

    7. Irion County ............................................................................................................................................. 68

    Overview of Irion County .......................................................................................................................... 68

    Per Capita Income, Population, and Industries ........................................................................................ 69

    Population Growth Comparison ............................................................................................................... 70

    Job Growth Comparison .......................................................................................................................... 71

    Natural Resource and Mining Employment Growth Comparison ............................................................ 72

    Location Quotients for Natural Resource and Mining Employment ......................................................... 73

    Population Projections ............................................................................................................................. 75

    Total Employment Forecast for Irion County in 2014-2022 ..................................................................... 76

    Educational Attainment ............................................................................................................................ 77Amounts Subject to State Sales Tax........................................................................................................ 78

    County Budgets ........................................................................................................................................ 79

    Employment Changes .............................................................................................................................. 80

    Commuting Patterns ................................................................................................................................ 81

    Economic Impacts in 2012 ....................................................................................................................... 82

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    5/191

    5

    Economic Impacts in 2022 ....................................................................................................................... 83

    8. Martin County .......................................................................................................................................... 84

    Overview of Martin County ....................................................................................................................... 84

    Per Capita Income, Population, and Industries ........................................................................................ 85

    Population Growth Comparison ............................................................................................................... 86Job Growth Comparison .......................................................................................................................... 87

    Natural Resource and Mining Employment Growth Comparison ............................................................ 88

    Location Quotients for Natural Resource and Mining Employment ......................................................... 89

    Population Projections ............................................................................................................................. 91

    Total Employment Forecast for Martin County in 2014-2022 .................................................................. 92

    Building Permits ....................................................................................................................................... 93

    Educational Attainment ............................................................................................................................ 94

    Amounts Subject to State Sales Tax........................................................................................................ 95

    Employment Changes .............................................................................................................................. 96

    Commuting Patterns ................................................................................................................................ 97

    Economic Impacts in 2012 ....................................................................................................................... 98

    Economic Impacts in 2022 ....................................................................................................................... 99

    9. Mitchell County ...................................................................................................................................... 100

    Overview of Mitchell County ................................................................................................................... 100

    Per Capita Income, Population, and Industries ...................................................................................... 101

    Population Growth Comparison ............................................................................................................. 102

    Job Growth Comparison ........................................................................................................................ 103

    Natural Resource and Mining Employment Growth Comparison .......................................................... 104

    Location Quotients for Natural Resource and Mining Employment ....................................................... 105

    Population Projections ........................................................................................................................... 107

    Total Employment Forecast for Mitchell County in 2014-2022 .............................................................. 108

    Building Permits ..................................................................................................................................... 109

    Educational Attainment .......................................................................................................................... 110

    Amounts Subject to State Sales Tax...................................................................................................... 111

    Employment Changes ............................................................................................................................ 112Commuting Patterns .............................................................................................................................. 113

    Economic Impacts in 2012 ..................................................................................................................... 114

    Economic Impacts in 2022 ..................................................................................................................... 115

    10. Nolan County ......................................................................................................................................... 116

    Overview of Nolan County ..................................................................................................................... 116

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    6/191

    6

    Per Capita Income, Population, and Industries ...................................................................................... 117

    Population Growth Comparison ............................................................................................................. 118

    Job Growth Comparison ........................................................................................................................ 119

    Natural Resource and Mining Employment Growth Comparison .......................................................... 120

    Location Quotients for Natural Resource and Mining Employment ....................................................... 121 Population Projections ........................................................................................................................... 123

    Total Employment Forecast for Nolan County in 2014-2022 ................................................................. 124

    Building Permits ..................................................................................................................................... 125

    Educational Attainment .......................................................................................................................... 126

    Amounts Subject to State Sales Tax...................................................................................................... 127

    County Budgets ...................................................................................................................................... 128

    Employment Changes ............................................................................................................................ 129

    Commuting Patterns .............................................................................................................................. 130

    Economic Impacts in 2012 ..................................................................................................................... 131

    Economic Impacts in 2022 ..................................................................................................................... 132

    11. Reagan County ..................................................................................................................................... 133

    Overview of Reagan County .................................................................................................................. 133

    Per Capita Income, Population, and Industries ...................................................................................... 134

    Population Growth Comparison ............................................................................................................. 135

    Job Growth Comparison ........................................................................................................................ 136

    Natural Resource and Mining Employment Growth Comparison .......................................................... 137

    Location Quotients for Natural Resource and Mining Employment ....................................................... 138

    Population Projections ........................................................................................................................... 140

    Total Employment Forecast for Reagan County in 2014-2022 .............................................................. 141

    Building Permits ..................................................................................................................................... 142

    Educational Attainment .......................................................................................................................... 143

    Amounts Subject to State Sales Tax...................................................................................................... 144

    County Budgets ...................................................................................................................................... 145

    Employment Changes ............................................................................................................................ 146

    Commuting Patterns .............................................................................................................................. 147Economic Impacts in 2012 ..................................................................................................................... 148

    Economic Impacts in 2022 ..................................................................................................................... 149

    12. Scurry County ........................................................................................................................................ 150

    Overview of Scurry County .................................................................................................................... 150

    Per Capita Income, Population, and Industries ...................................................................................... 151

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    7/191

    7

    Population Growth Comparison ............................................................................................................. 152

    Job Growth Comparison ........................................................................................................................ 153

    Natural Resource and Mining Employment Growth Comparison .......................................................... 154

    Location Quotients for Natural Resource and Mining Employment ....................................................... 155

    Population Projections ........................................................................................................................... 157Total Employment Forecast for Scurry County in 2014-2022 ................................................................ 158

    Building Permits ..................................................................................................................................... 159

    Educational Attainment .......................................................................................................................... 160

    Amounts Subject to State Sales Tax...................................................................................................... 161

    County Budgets ...................................................................................................................................... 162

    Employment Changes ............................................................................................................................ 163

    Commuting Patterns .............................................................................................................................. 164

    Economic Impacts in 2012 ..................................................................................................................... 165

    Economic Impacts in 2022 ..................................................................................................................... 166

    13. Sterling County ...................................................................................................................................... 167

    Overview of Sterling County ................................................................................................................... 167

    Per Capita Income, Population, and Industries ...................................................................................... 168

    Population Growth Comparison ............................................................................................................. 169

    Job Growth Comparison ........................................................................................................................ 170

    Natural Resource and Mining Employment Growth Comparison .......................................................... 171

    Location Quotients for Natural Resource and Mining Employment ....................................................... 172

    Population Projections ........................................................................................................................... 174

    Total Employment Forecast for Sterling County in 2014-2022 .............................................................. 175

    Educational Attainment .......................................................................................................................... 176

    Amounts Subject to State Sales Tax...................................................................................................... 177

    Employment Changes ............................................................................................................................ 178

    Commuting Patterns .............................................................................................................................. 179

    Economic Impacts in 2012 ..................................................................................................................... 180

    Economic Impacts in 2022 ..................................................................................................................... 181

    14.Appendices ............................................................................................................................................ 182Appendix A: County Budgets and Road Expenditures .......................................................................... 182

    Appendix B: West Texas Consortium Hotel Occupancy Data ............................................................... 183

    15. References ............................................................................................................................................ 186

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    8/191

    8

    Executive Summary

    The oil and gas industry in the core 10-county area of the WTxEC in 2012 had an impact close to $14.5

    billion, supported nearly 21,450 full-time jobs, paid $1 billion in wages and salaries, generated almost$472 million in state revenues including $187 million in severance taxes added approximately $6.2

    billion in gross regional product, and contributed nearly $447 million in local governments revenues.

    By 2022, those impacts will grow to $20.5 billion in output, supporting 30,500 full-time jobs, paying $1.8

    billion in wages and salaries, generating $701 million in state revenues including $334 million in

    severance taxes creating close to $9.4 billion in gross regional product, and contributing about $664

    million in local government revenues.

    Selected GIS software provided by Caliper Corporation; Newton, MA. http://www.caliper.com/Center for Community and Business Research.

    Taking into consideration low- and high-price scenarios, the impacts in 2022 could vary widely. This

    study estimates scenarios where low prices of oil in the future could produce an output as low as $7.6

    billion, and where high prices of oil could see enormous growth, as high as $34.3 billion. The ranges of

    these figures are broad due to high variability in the prices of oil and gas, the challenges of forecasting

    future oil and gas activities, changes in the number of wells per rig, and changes in productivity per well.

    http://www.caliper.com/http://www.caliper.com/http://www.caliper.com/http://www.caliper.com/
  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    9/191

    9

    Low

    Estimate Moderate Estimate

    High

    Estimate

    Output $7,589 $20,524 $34,29

    Employment 11,822 30,540 49,69

    Payroll $714 $1,865 $3,04

    Gross Regional Product $3,371 $9,434 $16,22

    Estimated Local Government Revenues $226 $664 $1,19

    Estimated State Revenue, incl. severance taxes $238 $701 $1,25

    * 2012 dollars

    Estimated Impacts for West Texas Energy Consortium

    at the Regional Level 2022 in millions of dollars *

    Total Impact Three Scenarios

    Source: IMPLAN software version 3, database 2011.

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    10/191

    10

    The effects across different counties are diverse. For 2012, in terms of output, the most affected

    counties are Howard ($4.2 billion), Martin ($2.8 billion), and Scurry ($1.9 billion). For 2022, Howard

    appears in first place ($4.4 billion), Reagan in second place ($4.3 billion), and Irion in third place ($3.2

    billion). Fisher and Sterling counties appear to be affected the least among the 14 counties with $2.9

    billion and $2.7 billion in 2012 and 2022, respectively.

    Source: CCBR Estimations using IMPLAN software version 3, database 2011

    Total Output Impacts

    County 2012 Total

    Output Impact, in

    millions of $

    County 2022 Total

    Output Impact,

    in millions of $

    Howard $4,238.9 Howard $4,461.0

    Martin $2,863.2 Reagan $4,359.9

    Scurry $1,903.4 Irion $3,238.9

    Reagan $1,771.5 Martin $2,666.7

    Glasscock $1,468.7 Glasscock $1,871.2

    Irion $856.7 Nolan $1,484.7

    Mitchell $727.0 Mitchell $1,080.8

    Nolan $556.8 Scurry $564.6

    Sterling $178.9 Fisher $384.9

    Fisher $176.3 Sterling $383.2

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    11/191

    11

    Source: CCBR Estimations using IMPLAN software version 3, database 2011

    In terms of employment, the most impacted counties in 2012 are Martin (4,610 full-time jobs), Scurry

    (2,966 full-time jobs), and Howard (2,808 full-time jobs). For 2022, the three most impacted counties are

    Reagan (5,131 full-time jobs), Irion (4,586 full-time jobs), and Martin (4,002 full-time jobs). Similar to the

    output impacts, Sterling appears among the least impacted with 275 and 637 full-time jobs in 2012 and

    2022, respectively. Something similar occurs to Fisher.

    Total Employment Impacts

    County

    2012 TotalFull-Time

    Employment

    County2022 TotalFull-Time

    Employment

    Martin 4,610 Reagan 5,131

    Scurry 2,966 Irion 4,586Howard 2,808 Martin 4,002

    Reagan 2,600 Nolan 3,714

    Glasscock 1,657 Howard 2,783

    Nolan 1,640 Glasscock 1,884

    Mitchell 1,348 Mitchell 1,810

    Irion 1,247 Scurry 1,208

    Fisher 394 Sterling 637

    Sterling 275 Fisher 590

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    12/191

    12

    Between the fourth quarter of 2011 to the fourth quarter of 2012, for the aggregate of all 10 counties,

    employment increased by 737 jobs, a 2.20 percent increase. For the 10 counties, the highest growth rate

    corresponds to other services (8.80 percent increase); followed by the natural resources & mining sector

    (8.00 percent increase), and the manufacturing sector (7.80 percent increase).

    Employment Changes in 10-County Region

    2011 4thQuarter to 2012 4thQuarter

    IndustryEmployment 2011

    4thQuarter

    Employment 2012

    4th Quarter

    Employment

    Change

    Percent Growth,

    2011-2012

    Other Services 894 973 79 8.80%

    Natural Resources &Mining

    4,910 5,304 394 8.00%

    Manufacturing 2,029 2,187 158 7.80%

    Leisure & HospitalityGroup

    2,693 2,884 191 7.10%

    Construction 2,213 2,338 125 5.60%

    Education & HealthServices

    9,219 9,333 114 1.20%

    Trade, Transport. &Utilities

    6,904 6,855 -49 -0.70%

    Financial Activities Group 1,048 1,018 -30 -2.80%

    Information 232 224 -8 -3.40%

    Public Administration 2,474 2,319 -155 -6.30%

    Professional Business &Other Services 1,105 1,023 -82 -7.40%

    Total, All Industries 33,721 34,458 737 2.20%Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012

    Employment changes by the Texas Workforce Commission are based on establishments paying

    employment insurance and do not include the self-employed. These statistics do not include the number

    of workers living in hotels, RV parks, and man camps, among other lodging facilities.1

    1These differences are discussed in Javier OyakawaAFrameworkfortheStudyandForecastofLaborForce,Employment,Population,Migration,andCommuteChangesintheEagleFordShale . Paper presented at the 44th

    Annual Conference of the Urban Affairs Association. March 19-22, 2014, San Antonio, Texas.

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    13/191

    13

    Source: CCBR Estimations using IMPLAN software version 3, database 2011

    The gross county product (GCP) impacts provide a better picture of the benefits obtained from oil and

    gas activities because these values include only earnings and surplus, and do not double count them as

    might happen with the output numbers. For 2012, in terms of GCP, the most impacted counties are

    Martin ($1.3 billion), Howard ($1.1 billion), and Scurry ($985 million). For 2022, Reagan ranks first ($2.1

    billion) Irion is second place ($1.5 billion), and Martin takes the third place ($1.3 billion).

    Total Gross County Product Impacts

    County

    2012 TotalGross

    County ProductImpact, in

    millions of $County

    2022 TotalGross

    County ProductImpact, in

    millions of $

    Martin $1,388.1 Reagan $2,134.0

    Howard $1,154.0 Irion $1,524.7

    Scurry $985.0 Martin $1,385.3

    Reagan $817.9 Howard $1,191.8

    Glasscock $686.4 Glasscock $934.2

    Irion $385.0 Nolan $757.9

    Mitchell $343.4 Mitchell $557.0

    Nolan $249.3 Scurry $296.9

    Sterling $87.2 Fisher $198.1

    Fisher $77.5 Sterling $186.2

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    14/191

    14

    The estimated state revenue provides a better picture of the economic benefits that the state of Texas

    gathered in 2012.This state revenue was then broken down by the amount gathered by each respective

    county. For 2012, the counties with the highest estimated state revenue are Martin ($116 million),

    Scurry ($85 million), and Glasscock ($61 million). Based on the predictions and calculations, the counties

    with the highest estimated state revenue for 2022 are Reagan ($157 million), Irion ($117 million) and

    Martin ($115 million).

    Estimated State Revenue 2012 and 2022

    County

    EstimatedState

    Revenue

    2012,in

    millions of $ County

    EstimatedState

    Revenue2022, in

    millions $

    Martin $115.7 Reagan $157.0

    Scurry $85.1 Irion $117.3

    Glasscock $61.8 Martin $114.9

    Reagan $61.3 Glasscock $81.5

    Howard $54.6 Nolan $58.0

    Irion $31.6 Howard $52.6

    Mitchell $28.7 Mitchell $48.3

    Nolan $15.8 Scurry $22.1

    Sterling $6.7 Fisher $17.1

    Fisher $5.8 Sterling $12.6

    Source: CCBR Estimations using IMPLAN software version 3, database 2011

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    15/191

    15

    The estimated local revenue provides a better picture of the economic benefits that each individual

    county locally acquired throughout 2012. For 2012, the counties with the highest estimated local

    revenue are Martin ($110 million), Scurry ($80 million), and Glasscock ($58 million). Based on

    predictions and calculations, the counties with the highest estimated local revenue for 2022 are Reagan

    ($149 million), Irion ($111 million), and Martin ($109 million).

    Estimated Local Revenues 2012 and 2022

    County

    Estimated Local

    Revenues

    2012, in

    millions of $ County

    Estimated

    Local

    Revenue

    2022, in

    millions of $

    Martin $109.5 Reagan $148.6

    Scurry $80.4 Irion $111.3

    Glasscock $58.3 Martin $108.9

    Reagan $58.0 Glasscock $77.1

    Howard $51.8 Nolan $55.0

    Irion $29.9 Howard $50.0

    Mitchell $27.1 Mitchell $45.5

    Nolan $15.1 Scurry $21.0

    Sterling $6.3 Fisher $16.2

    Fisher $5.5 Sterling $12.0

    Source: CCBR Estimations using IMPLAN software version 3, database 2011

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    16/191

    16

    Another indicator of the benefits from the West Texas oil and gas production is the amount of sales

    taxes that these counties generate, divided into four quarters, between 2002 and 2012. The 10-county

    areas total sales subject to state sales tax had an increase of $340.0 million by the end this time span.

    The following graph shows the original values in blue and the smoothed values in red. The smoothed

    values represent a four-quarter average.

    Source: Texas Comptroller office, historic sales tax data.

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    17/191

    17

    Introduction

    The West Texas Energy Consortium is an open forum for coordination and information sharing,

    organized by the Workforce Solutions Boards in the Concho Valley, West Central Texas, and PermianBasin regions. This is the second phase of a study that the WTxEC contracted with the Center for

    Community and Business Research at The University of Texas at San Antonios Institute for Economic

    Development to estimate the specific economic impacts of the oil and gas industry on each of the

    following ten counties: Fisher, Glasscock, Howard, Irion, Martin, Mitchell, Nolan, Reagan, Scurry, and

    Sterling.

    The West Texas Energy Consortium and the Severance Tax

    The West Texas Consortium is a 10-county region with active drilling. These counties include: Fisher,

    Glasscock, Howard, Irion, Martin, Mitchell, Nolan, Reagan, Scurry, and Sterling. The following tables

    detail the severance tax revenue for the ten counties in the consortium. The data was taken from the

    Texas ComptrollersOffice and focuses on crude oil and natural gas tax revenue for the year 2012, as

    well as the percent change from 2011 to 2012.

    Table 0-1

    Source: Texas Comptroller of Public Accounts

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    18/191

    18

    Table 0-2

    Source: Texas Comptroller of Public Accounts

    Reagan County had the highest revenue of the severance tax for crude oil in 2012, a staggering $23.6

    million. Martin and Glasscock Counties had over $17 million, with Irion earning $12.8 million. Howard

    County comes in fifth with a gross revenue for 2012 of $8.4 million. Glasscock County has the highest

    percent change in crude oil revenue with an 80.7 percent increase from 2011 to 2012. Irion County saw

    a 60.7 percent increase in severance tax revenue. The state of Texas as a whole saw a 44.3 percent

    increase. Both Sterling and Howard County suffered a negative change in crude oil revenue from 2011

    to 2012 with Howard losing the most at 9.1 percent.

    Table 0-3

    Source: Texas Comptroller of Public Accounts

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    19/191

    19

    Table 0-4

    Source: Texas Comptroller of Public Accounts

    The severance tax revenue for natural gas was the largest in Martin County totaling $79 million.

    Glasscock came in second with $51.6 million. Reagan County, which had the highest revenue for crude

    oil, was third in natural gas at just over $37.2 million. Scurry and Howard County round out the top five

    with $27.1 and $22.9 million, respectively. Glasscock, similar to crude oil percent change, has the

    highest percent change for natural gas tax revenue change with 77.6 percent. Scurry is a close second

    with a 74.3 percent change. Both Glasscock and Scurry are well above the Texas percent change for

    natural gas totaling 13.2 percent increase. Fisher, Sterling, and Mitchel County all suffered a negative

    change in natural gas revenue with the last six counties all losing more than 10 percent.

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    20/191

    20

    Fisher County

    Overview of Fisher County

    Fisher County lies on TX-180, north of I-20. There are only three cities in Fisher County. Roby is thecounty seat, with a population of 643. Rotan and Hamlin are the other two cities, with half of Hamlin

    lying in Jones County. It was named after Samuel Rhoads Fisher, a signer of the Texas Declaration of

    Independence. Fisher County is one of 30prohibition, or entirelydry,counties in the state of Texas.

    Figure 1-1

    Source: Selected GIS software provided by Caliper Corporation; Newton, MA.

    http://www.caliper.com/Center for Community and Business Research.

    http://en.wikipedia.org/wiki/Dry_countieshttp://www.caliper.com/http://www.caliper.com/http://www.caliper.com/http://en.wikipedia.org/wiki/Dry_counties
  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    21/191

    21

    Per Capita Income, Population, and Industries

    Fisher County has a population of 3,914 in 2011. The per capita personal income is $34,088 for 2011.

    The top three employments by industry are farm employment, state and local government, and retail

    trade; with government and government enterprises being the top industry by earnings.

    Table 1-1

    Fisher County

    Population 3,914Per Capita Personal Income 34,088Total Employment 987

    Farm Employment

    Employment by Industry (Top 3) State and Local Government

    Retail Trade

    Government andGovernment Enterprises

    Earnings by Industry (Top 3) Farms Earnings

    Other Services, Except PublicAdministration

    Source: Bureau of Economic Analysis (BEA), Regional Accounts

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    22/191

    22

    Population Growth Comparison

    Fisher Countys population growth falls behind the rate of Texas and the study area, according to the

    U.S. Census Bureau. By 2012, the population of Texas and the WTxEC study area has increased by 22.2percent and 2.7 percent, while the population of Fisher County has decreased by 9.7 percent when

    compared to 2001.

    Figure 1-2

    Source: U.S. Census Bureau

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    23/191

    23

    Job Growth Comparison

    Employment in Fisher County decreased 9.8 percent in the twelve-year study period. Fisher Countys

    employment rate has not been consistent with the WTxEC study region or state, which have grownrespectively by 14.7 percent and 11.3 percent when compared to 2001.

    Figure 1-3

    Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    24/191

    24

    Natural Resource and Mining Employment Growth Comparison

    Employment in the natural resources and mining super sector increased 51.2 percent for the state of

    Texas and 74.5 percent for the study area in the period between 2001 and 2012. In Fisher County, theemployment for the super-sector was not stable, peaking at 35.1 percent in 2005, decreasing to 13.0

    percent in 2011, and decreasing 3.9 percent in 2012 when compared to 2001. The decline in

    employment for the sector has followed the same trend as total employment, but has shown a higher

    degree of turbulence.Figure 1-4

    Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    25/191

    25

    Location Quotients for Natural Resource and Mining Employment

    Location quotients are useful in determining the significance of a particular job sector in the local

    economy. This is determined by calculating the ratio of a particular job sector with total jobs in the localeconomy, then comparing that to the same ratio for the state level. A location quotient greater than 1.0

    denotes a sector that has greater importance to the local economy than that for the state. A location

    quotient less than 1.0 signifies that the sector is lessimportant to the local economy when compared to

    the state.

    Both Fisher County and the study area report a location quotient greater than 1.0 from 2001-2012 . The

    natural resource and mining super sector has a greater significance in the Fisher County than in study

    area from 2002 to 2006.

    Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012

    Figure 1-5

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    26/191

    26

    Table 1-6

    Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    27/191

    27

    Population Projections

    The following table projects Fisher Countys population from 2000-2050. The projections are divided by

    ethnicity. Each category contains the percent change. Fisher County is projected by the year 2050 to see

    an overall decrease in population of 12.7 percent, a 34.4 percent decrease in Anglo population, a 5.9

    percent increase in Black population, and a 59.7 percent increase in the Hispanic population.

    Table 1-2

    Population Projections

    Year Total Change Anglo Change Black Change Hispanic Change Other Change

    2000 4,344 - 3,271 - 118 - 928 - 27 -

    2005 4,249 -2.2% 3,116 -4.7% 117 -0.8% 989 6.6% 27 0%

    2010 3,974 -8.5% 2,797 -14.5% 124 5.1% 999 7.7% 54 100.0%

    2015 3,984 -8.3% 2,731 -16.5% 130 10.2% 1,069 15.2% 54 100.0%

    2020 4,001 -7.9% 2,656 -18.8% 135 14.4% 1,156 24.6% 54 100.0%

    2025 4,005 -7.8% 2,583 -21.0% 137 16.1% 1,233 32.9% 52 92.6%

    2030 3,984 -8.3% 2,484 -24.1% 138 16.9% 1,310 41.2% 52 92.6%

    2035 3,949 -9.1% 2,383 -27.1% 134 13.6% 1,380 48.7% 52 92.6%

    2040 3,883 -10.6% 2,295 -29.8% 133 12.7% 1,405 51.4% 50 85.2%

    2045 3,841 -11.6% 2,224 -32.0% 130 10.2% 1,440 55.2% 47 74.1%

    2050 3,794 -12.7% 2,146 -34.4% 125 5.9% 1,482 59.7% 41 51.9%

    Source: Texas Workforce Commission as computed in 2012 by The Office of the State Demographer for the State of Texas

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    28/191

    28

    Table 1-3

    Total Employment Forecast for Fisher County in 2014-2022

    In order to estimate the Total Employment Forecast we used percentages of the super sectors for each

    county using the forecasts for the corresponding Workforce Development Area (WDA) starting with the

    base year (2014) and forecasting every year in between through 2022 (2020 figure provided by TWC).

    For the period 2020-2022, it was assumed the same growth rate from previous years.

    Year Total Employment Forecast

    2014 936

    2015 948

    2016 961

    2017 974

    2018 987

    2019 1000

    2020 1013

    2021 1026

    2022 1040

    Source: CCBR elaboration with Texas Workforce

    Commissions forecasts for Workforce Development

    Areas (WDAs) 2010-2020

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    29/191

    29

    Educational Attainment

    Educational Attainment refers to the highest degree of education an individual has completed. In Fisher

    County, 82.9 percent of its population has at least a high school diploma, and only 15.9 percent havecompleted their bachelors degree.

    Table 1-4

    Educational Attainment

    Type of School Number Percent Educational Attainment Number Percent

    Nursery school or preschool 52 5% Less than 9th grade 232 8%

    Kindergarten 49 5% 9th-12th grade, no diploma 246 9%

    Elementary (grades 1-8) 496 51% High school diploma or equiv. 1,147 41%

    High School (grades 9-12) 308 32% Some college, no degree 571 20%

    College or graduate school 70 7% Associate degree 157 6%

    Total 975 Bachelor's degree 333 12%

    Graduate or professional degree 112 4%Percent with high school diploma 82.9% Total 2,797

    Percent with Bachelor's degree 15.9%Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    30/191

    30

    Amounts Subject to State Sales Tax

    Fisher Countys total sales subject tostate sales tax were 1.3 million in the first quarter of 2010 with an

    increase to 2.5 million by the first quarter of 2013, an increase of 96 percent. Below is a 10-year

    historical graph for Fisher County of the amount of total sales subject to state sales tax. The original

    values are in blue and the smoothed values in red. The smoothed values represent a four-quarter sales

    average.

    Figure 1-7

    Source: Texas Comptroller of Public Accounts

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    31/191

    31

    Employment Changes

    Between the fourth quarter of 2011 and the fourth quarter of 2012, for Fisher County, there was a 2.6

    percent change in employment for all industries. Employment growth for the state of Texas for the same

    period was 3.26 percent. The industry with the highest growth was Natural Resources and Mining with a

    72.9 percent increase, and the industry with the highest negative growth in employment was

    Construction, with a -53.8 percent change.

    Table 1-5

    Employment Changes by Sector

    Industry Sector 2011 Q4 2012 Q4Employment

    ChangePercentChange

    Natural Resources and Mining 74 128 54 72.9%

    Leisure and Hospitality 33 39 6 18.2%Public Administration 77 83 6 7.8%Prof., Business, and Other Services 35 37 2 5.7%Total, All Industries 800 821 21 2.6%Trade, Transportation, Utilities 161 156 -5 -3.0%Financial Activities 56 54 -2 -3.0%Education and Health Services 298 281 -17 -5.7%Other Services 27 25 -2 -7.0%Construction 39 18 -21 -53.8%Manufacturing n/a n/a n/a n/aInformation n/a n/a n/a n/a

    Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    32/191

    32

    Commuting Patterns

    Using the Longitudinal Employer-Household Dynamic (LEHD) mapping programing, the commuting

    patterns of residents and employees of the 10-county region shows where residents work and the

    employees live. The commuting patterns for Fisher County can be seen below. When compared to the

    other nine counties, Fisher County had the second highest percentage, at 69 percent, of employees who

    live within one of the 10-counties with active drilling. They had the fourth highest percentage of

    residents who work within the 10-county area.

    There are 716 people employed in Fisher County. Of the total, 215 work in Scurry and live within one of

    the 10-counties that are part of the study. The remaining 501 workers are employed in Fisher County

    but live outside the 10-county study area.

    Table 1-6

    Commuting Patterns for EmployeesNumber Percentage

    Live in 10-county area215 30.1%

    Live outside 10-county area 501 69.9%

    Total 716 100.0%Source: U.S. Census Bureaus On the Map

    There are 1,431 workers who live in Fisher County. Of this total, 686 work within the 10-county study

    area. The remaining 745 workers live in Fisher County but work outside the 10-county study area.

    Table 1-7

    Commuting Patterns for Residents

    Number Percentage

    Work in 10-county area686 47.9%

    Work outside 10-county area745 52.1%

    Total 1,431 100.0%Source: U.S. Census Bureaus On the Map

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    33/191

    33

    Economic Impacts in 2012

    The following table shows the estimated impacts of the oil and gas industry on Fisher County in 2012.

    The rows contain the estimated economic impact for 2012 in regards to the oil and gas industry. During

    this period, the total output $176 million, a total of $77 million gross county product, and a total of 394

    full-time employment.

    The total estimated state revenue was $5 million, and an estimated severance tax of $1 million, with a

    total amount of royalties of $16 million, and a total of $6 million lease payments. The drilling and

    completion expenditures represented $60 million; followed by oil and gas production with $82 million.

    Estimated Impacts in Fisher, 2012

    Table 1-8

    Economic Impacts

    Direct Indirect Induced Total

    Output $142,586,917 $23,282,178 $10,528,336 $176,397,432

    Gross County Product $60,908,752 $10,381,581 $6,240,719 $77,531,052

    Employment Full-Time 137 187 70 394

    Payroll $10,781,696 $3,380,275 $1,134,293 $15,296,264

    Estimated State Revenue $5,839,608Source: CCBR Estimations using IMPLAN software version 3, database 2011

    Estimated Expenditures in Fisher, 2012Table 1-9

    Severance Tax $1,972,909

    Royalties $16,517,383

    Lease Payments $6,580,070

    Drilling and completion $60,000,000

    Oil and gas production $82,586,916

    1. Source: CCBR Estimations using IMPLAN software version 3 database 2011

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    34/191

    34

    Economic Impacts in 2022

    The following table shows the estimated impacts of the shale activity on Fisher County. In 2022, it is

    estimated that a total of 590 Fisher County jobs were supported by the 10-county area under analysis, in

    addition to $384 million in output as well as over $198 million gross county product.

    The total estimated state revenue is $17 million, and the total severance tax is $9.9 million with a total

    of $81 million in royalties and a total of $3 million in lease payments. The drilling and completion

    expenditures represented $34 million; followed by oil and gas production with $405 million.

    Estimated Impacts in Fisher, 2022Table 1-10

    Economic Impacts

    Direct Indirect Induced Total

    Output $331,136,128 $34,267,210 $19,541,409 $384,944,747

    Gross County Product $169,648,577 $16,888,716 $11,583,810 $198,121,103

    Employment Full-Time 202 259 130 590

    Payroll $23,678,839 $6,009,710 $2,102,966 $31,791,515

    Estimated State Revenue $17,173,710Source: CCBR Estimations using IMPLAN software version 3, database 2011

    Estimated Expenditures Fisher, 2022Table 1-11

    Severance Tax $9,988,373.11

    Royalties $81,052,314Lease Payments $3,915,811

    Drilling and completion $34,925,022

    Oil and gas production $405,261,569Source: CCBR Estimations using IMPLAN software version 3, database 2011

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    35/191

    35

    Glasscock County

    Overview of Glasscock County

    The following graphs and charts show population growth, total employment, the natural resource and

    mining employment, and the relationship among Glasscock County, the study area, and the state of

    Texas. Glasscock County is named after George Washington Glasscock, an early settler of the Austin

    area. Glasscock County is located on US Highway 87, and its only town is Garden City, which has a

    population of just 334.

    Figure 2-1

    Source: Selected GIS software provided by Caliper Corporation; Newton, MA.

    http://www.caliper.com/Center for Community and Business Research.

    http://www.caliper.com/http://www.caliper.com/http://www.caliper.com/
  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    36/191

    36

    Per Capita Income, Population, and Industries

    Glasscock County had a total population of just 1,251. The per capita personal income was $32,256. The

    top three industry are farm employment, state and local government, and forestry, fishing, and related

    activities; with government and government enterprises being the top industry by earnings.

    Table 2-1

    Glasscock CountyPopulation 1,251

    Per capita Personal Income 32,256

    Total Employment 436

    Farm Employment

    Employment by Industry (Top 3) State and Local Government

    Forestry, Fishing, and RelatedActivates

    Government and GovernmentEnterprises

    Earnings by Industry (Top 3)

    Forestry, Fishing, and RelatedActivities

    MiningSources: Bureau of Economic Analysis (BEA), Regional Accounts

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    37/191

    37

    Population Growth Comparison

    Glasscock Countys population growth falls behind the state of Texas and the WTxEC study area.

    Compared to the 22.2 percent increase of Texas, the study area only increased 2.7 percent during the

    last twelve years, while Glasscock County decreased 6.8 percent when comparing 2001 and 2012.

    Glasscock Countys population has not been consistent with the region or the state.

    Figure 2-2

    Source: U.S. Census Bureau

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    38/191

    38

    Job Growth Comparison

    Employment growth for Glasscock County during the study period is erratic, but has shown a major

    upswing since 2009. Glasscock County reached the same 14.7 percent rate as the state of Texas in 2012,

    outpacing the WTxEC study areas 11.3 percent job growth when compared to 2001.

    Figure 2-3

    Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    39/191

    39

    Natural Resource and Mining Employment Growth Comparison

    Employment in the natural resources and mining super-sector increased 51.2 percent in Texas and 74.5

    percent for the WTxEC study area between 2001 and 2012. Glasscock Countys employment growth

    within the sector has increased to a more modest 22.9 percent between 2001 and 2012.

    Figure 2-4

    Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    40/191

    40

    Location Quotients for Natural Resource and Mining Employment

    Location quotients are useful in determining the significance of a particular job sector in the local

    economy. This is determined by calculating the ratio of a particular job sector with total jobs in the local

    economy, then comparing that to the same ratio for the state level. A location quotient greater than 1.0

    denotes a sector that has greater importance to the local economy than that for the state. A location

    quotient less than 1.0 signifies that the sector is lessimportant to the local economy when compared to

    the state.

    Both Glasscock County and the study area report a location quotient greater than 1.0 from 2001 to

    2012. The natural resource and mining super sector has a much greater significance in Glasscock County

    than in the state of Texas or even the rest of the study area.

    Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012

    Figure 2-5

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    41/191

    41

    Chart 2-6

    Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    42/191

    42

    Population Projections

    The following table projects Glasscock Countys population from 2000-2050. The projections are divided

    by ethnicity, with a category for Anglo, Black, and Hispanic. Each category contains the percent change.

    Glasscock County is projected by the year 2050 to see a 26.8 percent decrease in Anglo population, a

    100 percent increase in Black population, and a 51 percent increase in the Hispanic population.

    Table 2-2

    Population Projections

    Year Total Change Anglo Change Black Change Hispanic Change Other Change

    2000 1,406 - 978 - 7 - 420 - 1 -

    2005 1,473 4.8% 1,009 3.2% 7 0.0% 456 8.6% 1 0.0%

    2010 1,226 -12.8% 825 -15.6% 15 114.3% 378 10.0% 8 700.0%

    2015 1,280 -9.0% 848 -13.3% 15 114.3% 409 -2.6% 8 700.0%

    2020 1,341 -4.6% 873 -10.7% 15 114.3% 445 6.0% 8 700.0%

    2025 1,391 -1.1% 888 -9.2% 15 114.3% 480 14.3% 8 700.0%2030 1,429 1.6% 885 -9.5% 15 114.3% 521 24.0% 8 700.0%

    2035 1,441 2.5% 860 -12.1% 15 114.3% 558 32.9% 8 700.0%

    2040 1,421 1.1% 816 -16.6% 15 114.3% 583 38.8% 7 600.0%

    2045 1,392 -1.0% 762 -22.1% 14 100.0% 609 45.0% 7 600.0%

    2050 1,371 -2.5% 716 -26.8% 14 100.0% 634 51.0% 7 600.0%

    Source: Texas Workforce Commission as computed in 2012 by The Office of the State Demographer for the State of Texas

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    43/191

    43

    Table 2-3

    Source: CCBR elaboration with Texas Workforce

    Commissions forecasts for Workforce Development

    Areas (WDAs) 2010-2020

    Total Employment Forecast for Glasscock County in 2014-2022

    In order to estimate the Total Employment Forecast we used percentages of the super sectors for each

    county using the forecasts for the corresponding Workforce Development Area (WDA) starting with the

    base year (2014) and forecasting every year in between through 2022 (2020 figure provided by TWC).

    For the period 2020-2022, it was assumed the same growth rate from previous years.

    Year Total Employment Forecast

    2014 416

    2015 428

    2016 440

    2017 453

    2018 466

    2019 4802020 494

    2021 508

    2022 523

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    44/191

    44

    Educational Attainment

    Educational Attainment refers to the highest degree of education an individual has completed. In

    Glasscock County, 83.2 percent of its population has at least a high school diploma, and 20 percent havecompleted their bachelors degree.

    Table 2-4

    Educational Attainment

    Type of School Number Percent Educational Attainment Number Percent

    Nursery school or preschool 12 3.6% Less than 9th grade 72 9.7%

    Kindergarten 12 3.6% 9th-12th grade, no diploma 53 7.1%

    Elementary (grades 1-8) 158 47.7% High school diploma or equiv. 173 23.2%

    High School (grades 9-12) 113 34.1% Some college, no degree 247 33.1%

    College or graduate school 36 10.9% Associate degree 52 7.0%

    Total 331 Bachelor's degree 116 15.5%

    Graduate or professional degree 33 4.4%Percent with high school diploma 83.2% Total 746

    Percent with Bachelor's degree 20.0%Source: Texas Workforce Commissions County Narrative Profile from the Socrates database

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    45/191

    45

    Amounts Subject to State Sales Tax

    Glasscock Countys total sales subject to state sales tax were 5.3 million in the first quarter of 2010 with

    an increase to 2.2 million by the first quarter of 2013, an increase of 330 percent. Below is a 10-year

    historical graph for Glasscock County of the amount of total sales subject to state sales tax. The original

    values are in blue and the smoothed values in red. The smoothed values represent a four-quarter sales

    average.

    Source: Texas Comptroller of Public Accounts

    Figure 2-7

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    46/191

    46

    County Budgets

    The following graph shows the revenues and expenditures for Glasscock County. Their revenues have

    steadily risen from under $3.5 million in 2009 to over $7.3 million in 2013, while increasing their net

    surplus.

    Figure 2-8

    Source: Glasscock Reporting Budget Fund

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    47/191

    47

    Employment Changes

    Between the fourth quarter of 2011 and the fourth quarter of 2012 there was an 8.1 percent change in

    employment for all industries. Employment growth for the state of Texas for the same period was 3.26percent. The industry with the highest growth was trade, transportation and utilities with a 9.3 percent

    increase, and the industry with the highest negative growth in employment was Construction, with a

    15.8 percent decrease.

    Table 2-5

    Employment Changes by Sector

    Industry Sector 2011 Q4 2012 Q4Employment

    ChangePercentChange

    Trade, Transport., and Utilities 43 47 4 9.3%Natural Resources and Mining 210 229 19 9.0%Total, All Industries 321 347 26 8.1%

    Public Administration 49 50 1 2.0%Construction 19 16 -3 -15.8%Manufacturing n/a n/a n/a n/aInformation n/a n/a n/a n/aFinancial Activities n/a n/a n/a n/aProf., Business, and Other Services n/a 5 n/a n/aEducation and Health Services n/a n/a n/a n/aLeisure and Hospitality n/a n/a n/a n/aOther Services n/a n/a n/a n/a

    Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    48/191

    48

    Commuting Patterns

    Using the Longitudinal Employer-Household Dynamic (LEHD) mapping program, the commuting patterns

    of residents and employees of the 10-county region shows where residents work and the employees

    live. The commuting patterns for Glasscock County can be seen below. When compared to the other

    nine counties, Glasscock County had the third lowest percentage, at 40 percent, of employees who live

    within one of the 10-counties with active drilling. However, they had the second highest percentage of

    residents who work within the 10-county area.

    There are 249 people employed in Glasscock County. Of this total, 150 work in Glasscock County and live

    within one of the 10-counties that are part of the study. The remaining 99 workers are employed in

    Glasscock County but live outside the 10-county study area.

    Table 2-6

    Commuting Patterns for Employees

    Number Percentage

    Live in 10-county area150 60.2%

    Live outside 10-county area99 39.8%

    Total 249 100.0%Source: US Census Bureaus On the Map

    There are 480 workers who live in Glasscock County. Of the total, 118 work in Glasscock and live within

    the 10-county study area. The remaining 362 workers are employed in Glasscock County but live outside

    the 10-county study area.

    Table 2-7

    Commuting Patterns for Residents

    Number Percentage

    Work in 10-county area118 24.6%

    Work outside 10-county area362 75.4%

    Total 480 100.0%Source: US Census Bureaus On the Map

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    49/191

    49

    Economic Impacts in 2012

    The following table shows the estimated impacts of the shale oil and gas industry on Glasscock County.

    In 2012, it is estimated that a total of 1,657 Glasscock County jobs were supported by the 10-county

    area under analysis, in addition to $1.4 million in output as well as over $686 million gross county

    product.

    The total estimated state revenue was $61 million, total severance tax $27 million, an estimated lease

    payments of $28 million and $222 million in royalties. The drilling and completion expenditures

    represented $276 million; followed by oil and gas production with $1.1 million, and pipeline

    construction activity with $9 million.

    Estimated Impacts in Glasscock 2012

    Table 2-8

    Economic Impacts

    Direct Indirect Induced Total

    Output $1,395,709,629 $50,259,020 $22,801,749 $1,468,770,398Gross County Product $656,586,417 $16,835,812 $12,991,805 $686,414,034

    Employment Full-Time 1,069 455 133 1,657

    Payroll $80,406,832 $11,901,887 $2,040,628 $94,349,346

    Estimated State Revenue $61,821,808

    Source: CCBR Estimations using IMPLAN software version 3, database 2011

    Estimated Expenditures in Glasscock 2012Table 2-9

    Severance Tax $27,061,044Royalties $222,028,407

    Lease Payments $28,952,307

    Drilling and completion $276,257,253

    Oil and gas production $1,110,142,037

    Pipeline Construction $9,310,340Source: CCBR Estimations using IMPLAN software version 3, database 2011

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    50/191

    50

    Economic Impacts in 2022

    The following table shows the estimated impacts of the oil and gas industry on Glasscock County. In

    2022, it is estimated that a total of 1,884 Glasscock County jobs were supported by the 10-county area

    under analysis, in addition to $1.9 million in output as well as over $934 million gross county product.

    The total estimated state revenue was $81 million, total severance tax $49 million and an estimated

    lease payments of $23 million; with an estimate of $405 million in royalties. The drilling and completion

    expenditures represented $298 million; while oil and gas production accounted for $2 million and a

    refinery production of $3.5 million, and pipeline construction activity with $9 million.

    Estimated Impacts in Glasscock 2022Table 2-10

    Economic Impacts

    Direct Indirect Induced Total

    Output $1,780,982,912 $56,365,633 $33,862,244 $1,871,210,789

    Gross County Product $894,290,370 $20,575,864 $19,401,815 $934,268,048Employment Full-Time 1,172 512 199 1,884

    Payroll $133,067,851 $14,726,626 $3,072,251 $150,866,729

    Estimated State Revenue $81,544,909

    Source: CCBR Estimations using IMPLAN software version 3, database 2011

    Estimated Expenditures Glasscock 2022Table 2-11

    Severance Tax $49,533,384.25

    Royalties $405,771,731

    Lease Payments $22,727,635

    Drilling and completion $298,062,957

    Oil and gas production $2,028,858,656

    Refinery Production $3,555,538,000

    Pipeline Construction $9,310,340Source: CCBR Estimations using IMPLAN software version 3, database 2011

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    51/191

    51

    Howard County

    Overview of Howard County

    The following graphs and charts show population growth, total employment, the super sector natural

    resource and mining (NRM) employment, and the relationship between Howard County, the study area,and the state of Texas. Howard County is located along Interstate 20 and US Highway 87. The County

    was named after Volney E. Howard, a U.S. Congressman from Texas. Big Spring is the countys seat, with

    a population 27,282. Other smaller cities include Sand Springs, Coahoma, and Forsan, each with under

    1,000 residents.

    Figure 3-1

    Source: Selected GIS software provided by Caliper Corporation; Newton, MA.

    http://www.caliper.com/Center for Community and Business Research.

    http://www.caliper.com/http://www.caliper.com/http://www.caliper.com/
  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    52/191

    52

    Per Capita Income, Population, and Industries

    Howard County had a population of 35,122. The per capita personal income was $37,181. The top three

    industry are state and local government, retail trade, and mining; with government and government

    enterprises being the top industry by earnings.

    Table 3-1

    Howard County

    Population 35,122

    Per capita Personal Income 31,781

    Total Employment 12,935

    State and Local Government

    Employment by Industry (Top 3) Retail Trade

    Mining

    Government and GovernmentEnterprises

    Earnings by Industry (Top 3) Mining

    ManufacturingSource: Bureau of Economic Analysis (BEA), Regional Accounts

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    53/191

    53

    Population Growth Comparison

    The population of Howard County has grown by 6.4 percent during the past twelve years. This

    population growth is consistently higher than the 2.7 percent average of the WTxEC study area, but bothpercentages are lower than the 22.2 percent average for the state of Texas.

    Figure 3-2

    Source: U.S. Census Bureau

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    54/191

    54

    Job Growth Comparison

    Employment grew in Howard County at a 3.4 percent lower rate than in the state of Texas over the

    twelve-year study period. The employment growth percentages for the state of Texas, Howard County,and the WTxEC study area followed a similar pattern.

    Figure 3-3

    Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    55/191

    55

    Natural Resource and Mining Employment Growth Comparison

    Howard Countys employment in the natural resources and mining sector grew by 76.4 percent over the

    twelve-year study period, which is higher than the WTxECs study area growth of 74.5 percent and thestate of Texass 51.2 percent in the same sector between 2001 and 2012. Development within the oil

    and gas industry is definitely the driver of growth in Howard County, as the growth in jobs in the sector

    outpaces total job growth.Figure 3-4

    Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    56/191

    56

    Figure 3-5

    Location Quotients for Natural Resource and Mining Employment

    Location quotients are useful in determining the significance of a particular job sector in the local

    economy. This is determined by calculating the ratio of a particular job sector from the local economy

    with total jobs in the local economy, then comparing that to the same ratio for the state. A location

    quotient greater than 1.0 denotes a sector that has greater importance to the local economy than that

    for the state. A location quotient less than 1.0 signifies that the sector is lessimportant to the local

    economy when compared to the state.

    Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    57/191

    57

    Both Howard County and the study area report a location quotient greater than 1.0 between 2001 and

    2012. The natural resource and mining super sector has a greater significance in the study area than in

    Howard County, and its importance has grown over the years.

    Figure 3-6

    Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    58/191

    58

    Population ProjectionsPopulation projections are an estimate of a future population. The following table projects Howard

    Countys population from 2000-2050. The projections are divided by ethnicity, with a category for Anglo,

    Black, and Hispanic. Each category contains the percent change. Howard County is projected by the year

    2050 to see an increase in total population by 17.4 percent, a 12.5 percent decrease in Anglopopulation, a 42.9 percent increase in Black population, and a 54.4 percent increase in the Hispanic

    population.

    Table 3-2

    Population Projections

    Year Total Change Anglo Change Black Change Hispanic Change Other Change

    2000 33,627 - 19,327 - 1357 - 12597 - 346 -

    2005 34,365 2.2% 18,922 -2.1% 1456 7.3% 13622 8.1% 365 5.5%

    2010 35,012 4.1% 18,801 -2.7% 2079 53.2% 13255 5.2% 877 153.5%

    2015 36,274 7.9% 18,946 -2.0% 2193 61.6% 14,197 12.7% 938 171.1%

    2020 37,310 11.0% 18,937 -2.0% 2288 68.6% 15,095 19.8% 990 186.1%

    2025 38,237 13.7% 18,838 -2.5% 2328 71.6% 16,024 27.2% 1047 202.6%2030 38,936 15.8% 18,573 -3.9% 2326 71.4% 16,941 34.5% 1096 216.8%

    2035 39,395 17.2% 18,240 -5.6% 2281 68.1% 17,733 40.8% 1141 229.8%

    2040 39,603 17.8% 17,843 -7.7% 2193 61.6% 18,392 46.0% 1175 239.6%

    2045 39,563 17.7% 17,366 -10.1% 2078 53.1% 18,941 50.4% 1178 240.5%

    2050 39,475 17.4% 16,902 -12.5% 1939 42.9% 19,454 54.4% 1180 241.0%

    Source: Texas Workforce Commission as computed in 2012 by The Office of the State Demographer for the State of Texas

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    59/191

    59

    Table

    Table 3-3

    Total Employment Forecast for Howard County in 2014-2022

    In order to estimate the Total Employment Forecast we used percentages of the super sectors for each

    county using the forecasts for the corresponding Workforce Development Area (WDA) starting with the

    base year (2014) and forecasting every year in between through 2022 (2020 figure provided by TWC).

    For the period 2020-2022, it was assumed the same growth rate from previous years.

    Year Total Employment Forecast

    2014 13265

    2015 13582

    2016 13909

    2017 14242

    2018 14586

    2019 14937

    2020 15296

    2021 15572

    2022 15898Source: CCBR elaboration with Texas Workforce

    Commissions forecasts for Workforce Development Areas

    (WDAs) 2010-2020

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    60/191

    60

    Building Permits

    Howard County saw a large increase in single family building permits the last three years, rising from two

    in 2009, to fifteen in 2012.

    Table 3-4

    Single Family Building PermitsYear 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Units 15 3 0 3 0 2 2 16 10 2 2 5 15Source: Texas A&M Real Estate Center

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    61/191

    61

    Educational Attainment

    Educational Attainment refers to the highest degree of education an individual has completed. In

    Howard County, 72.2 percent of its population has at least a high school diploma, and only 10.8 percenthave completed their bachelors degree.

    Table 3-5

    Educational Attainment

    Type of School Number Percent Educational Attainment Number Percent

    Nursery school or preschool 384 4.9% Less than 9th grade 2,698 11.4%

    Kindergarten 385 4.9% 9th-12th grade, no diploma 3,881 16.4%

    Elementary (grades 1-8) 3,390 43.1% High school diploma or equiv. 6,721 28.4%

    High School (grades 9-12) 2,127 27.0% Some college, no degree 5,963 25.2%

    College or graduate school 1,579 20.1% Associate degree 1,846 7.8%

    Total 7,865 Bachelor's degree 1,727 7.3%

    Graduate or professional degree 828 3.5%

    Percent with high school diploma 72.2% Total 23,664

    Percent with Bachelor's degree 10.8%Source: Texas Workforce Commissions County Narrative Profile from the Socrates database

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    62/191

    62

    Amounts Subject to State Sales Tax

    Howard Countys total sales subject to sales tax were $64,744,093 in the first quarter of 2010 with an

    increase to $110,074,460 by the first quarter of 2013, an increase of 70 percent. Below is a 10 year

    historical graph for Howard County of the amount of total sales subject to sales tax. The original values

    are in blue and the smoothed values in red. The smoothed values represent a four-quarter salesaverage.

    Figure 3-7

    Source: Texas Comptroller of Public Accounts

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    63/191

    63

    County Budgets

    The following graph shows the revenues and expenditures for Howard County. Their revenues have held

    steady around $11 million, until they increased 2011.

    Figure 3-8

    Source: Howard County, Texas 2009-2013 Budgets

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    64/191

    64

    Employment Changes

    Between the fourth quarter of 2011 and the fourth quarter of 2012, for Howard County, there was a 3.1

    percent change in employment for all industries. The employment growth for the state of Texas for the

    same period was 3.26 percent. The industry with the highest growth was manufacturing with a 15.7

    percent increase.

    Table 3-6

    Employment Changes by Sector

    Industry Sector 2011 Q4 2012 Q4Employment

    ChangePercentChange

    Manufacturing 959 1,110 151 15.7%Prof., Business, and Other Services 284 321 37 13.0%Leisure and Hospitality 1,107 1,206 99 9.9%Total, All Industries 12,392 12,780 388 3.1%Construction 841 863 22 2.6%Education and Health Services 4,596 4,716 120 2.6%

    Public Administration 643 626 -17 2.6%Trade, Transport, and Utilities 2,167 220 42 1.9%Natural Resources and Mining 946 950 4 0.4%Other Services 317 315 -2 -0.6%Information 98 94 -4 -4.0%Financial Activities 434 370 -64 -14.7%

    Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    65/191

    65

    Commuting Patterns

    Using LEHD mapping, the commuting patterns of residents and employees of the 10-county region

    shows where residents work and the employees live. The commuting patterns for Howard County can

    be seen below. When compared to the other nine counties, Howard County had the third highest

    percentage, at 32 percent, of employees who live within one of the 10-counties with active drilling. They

    also had the third highest percentage of residents who work within the 10-county area.

    There are 10,683 people employed in Howard County. A total of 7,265 work in Howard and live within

    one of the 10-counties that are part of the study. The remaining 3,418 workers are employed in Howard

    County but live outside the 10-county study area.

    Table 3-7

    Commuting Patterns for Employees

    Number Percentage

    Live in 10-county area7,265 68%

    Live outside 10-county area3,418 32%

    Total 10,683 100%Source: U.S. Census Bureaus On the Map

    There are 12,418 workers who live in Howard County. A total 7,402 work in Howard and live within the

    10-county study area. The remaining 5,016 workers are employed in Howard County but live outside the

    10-county study area.

    Table 3-8

    Commuting Patterns for Residents

    Number Percentage

    Work in 10-county area7,402 60%

    Work outside 10-county area5,016 40%

    Total 12,418 100%Source: U.S. Census Bureaus On the Map

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    66/191

    66

    Economic Impacts in 2012

    The following table shows the estimated impacts of the shale activity on Howard County. In 2012, it is

    estimated that a total of 2,808 Howard County jobs were supported by the 10-county area under

    analysis, in addition to $4.2 million in output and more than $1.5 million in gross county product.

    The total estimated state revenue was $54 million, total severance tax $17 million, a total of $148

    million in royalties and an estimated lease payments of $15 million. The drilling and completion

    expenditures represented $138 million; followed by oil and gas production with $744 million, and

    pipeline construction activity with $9 million.

    Estimated Impacts in Howard 2012

    Table 3-9

    Economic Impacts

    Direct Indirect Induced Total

    Output $3,543,275,901 $598,510,145 $97,197,229 $4,238,983,274

    Gross County Product $912,082,419 $185,886,274 $56,128,805 $1,154,097,498

    Employment Full-Time 827 1,350 631 2,808

    Payroll $88,277,830 $55,237,978 $20,380,558 $163,896,367

    Estimated State Revenue $54,663,733

    Source: CCBR Estimations using IMPLAN software version 3, database 2011

    Estimated Expenditures in Howard 2012Table 3-10

    Severance Tax $17,722,708Royalties $148,950,866

    Lease Payments $15,134,161

    Drilling and completion $138,000,000

    Oil and gas production $744,754,328

    Refinery Production $2,660,521,500Source: CCBR Estimations using IMPLAN software version 3, database 2011

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    67/191

    67

    Economic Impacts in 2022

    The following table shows the estimated impacts of the shale activity on Howard County. In 2022, it is

    estimated that a total of 2,783 Howard County jobs were supported by the 10-county area under

    analysis, in addition to $4.5 million in output and more than $1.2 million in gross county product.

    The total estimated state revenue was $52 million, total severance tax $22 million, a total of $186

    million on royalties and an estimated lease payments of $9 million. The drilling and completion

    expenditures represented $80 million; followed by oil and gas production with $932 million.

    Estimated Impacts in Howard 2022Table 3-11

    EconomicImpacts

    Direct Indirect Induced Total

    Output $3,672,311,610 $681,214,954 $107,534,671 $4,461,061,235

    Gross County Product $925,823,833 $204,736,419 $61,327,884 $1,191,888,136

    Employment Full-Time 720 1,377 686 2,783

    Payroll $100,642,574 $57,774,039 $22,201,279 $180,617,893

    Estimated State Revenue $52,675,758

    Source: CCBR Estimations using IMPLAN software version 3, database 2011

    Estimated Expenditures in Howard 2022Table 3-12

    Severance Tax $22,973,258.14Royalties $186,420,322

    Lease Payments $9,006,366

    Drilling and completion $80,327,551

    Oil and gas production $932,101,609Source: CCBR Estimations using IMPLAN software version 3, database 2011

  • 7/13/2019 West Texas Region 10 County Level Impacts of Oil and Gas Phase 2

    68/191

    68

    Irion County

    Overview of Irion County

    The following graphs and charts show population growth, total employment, natural resource andmining employment, and the relationship between Irion County, the study area, and the state of Texas.

    Irion County is located on theEdwards Plateau in thestate ofTexas.It is part of the San Angelo

    Metropolitan Statistical Area.The county is named forRobert Anderson Irion,a secretary of state of the