AQUA BOOK 2015 - Page 26

• 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. 24 Annual Review of South Texas Economy