OIL IMPACTS ACROSS TEXAS
T
he five major shale formations in Texas are Barnett, Eagle Ford, Granite Wash,
Haynesville and Permian Basin. The map below shows their locations and the counties
atop each formation.
Texas Shale Formations
OIL IMPACTS
Until recently, most so-called “impact” studies provide forecast estimates using inputoutput models, such as IMPLAN, customized to the specific shale region. Those models explain
economic impacts through the concept of multiplier effect, which represents the potential
impact of drilling new oil and gas wells on all industries within a region.
For natural gas drilling in the Barnett shale, the Perryman Group (2009, 2011) reported
regional economic impacts that imply an employment multiplier of 1.15. For the counties in the
Permian Basin, Ewing et al. (2014) of Texas Tech University produced corresponding economic
impact estimates that imply an average multiplier of 1.93 for employment and 1.47 for wage
income.
Annual Review of South Texas Economy
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