• Positive economic impacts take time to materialize: While it takes time for a newly drilled well
to exert its full economic impact on the industry and the local economy, layoffs can take place
almost immediately after a well is shut down. As a result, the absolute size of the measured
impact of shutting down a well on the local economy was found to be substantially greater than
the impact of drilling a new well within a given year.
• Interactions among counties raise local economic impacts: Economic interactions due to
trade and commute lead to spillover effects of the oil and gas activity in one county on to its
surrounding counties. This geographical effect is particularly evident in the Eagle Ford region.
• The multiplier effects of oil and gas drilling in Texas are found to be greater than previous
findings using input-output analysis.
OIL IMPACTS
Income Growth, 2009–2014
Source: Bureau of Economic Analysis.
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Annual Review of South Texas Economy