AQUA BOOK 2015 - Page 23

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 21