Texas Study Links More Than 238,000 Jobs to Pipelines



Texas Study Links More Than 238,000 Jobs to Pipelines
A new study finds ongoing operations and construction in Texas' pipeline industry provided nearly $49 billion in economic impact last year.

Ongoing operations and construction in Texas’ oil and gas pipeline industry provided the state with more than $48.6 billion in economic impact and supported more than 238,000 jobs last year, according to a newly released study from the Texas Pipeline Association (TPA).

In addition, the TPA-commissioned research – conducted by Texas Tech University’s Center for Energy Commerce – found the pipeline sector added $29.3 billion in gross state product and $2.7 billion-plus to state and local government coffers in 2019.

“Texas pipelines are an essential component of our energy infrastructure,” TPA President Thure Cannon remarked in a written statement emailed to Rigzone. “It is clear from this Update to the Economic Impacts of the Texas Oil and Gas Pipeline Industry study that pipelines deliver the robust economic benefits that come from the continued growth and expansion of the oil and gas industry.”

TPA pointed out the study also projects that more than 492,000 of the state’s jobs over the next four decades will be attributable to the pipeline industry. Moreover, it anticipates the following industry-driven cumulative economic impacts (figures in 2020 dollars):

  • $1.49 trillion in economic output
  • $903 billion in additional gross state product
  • $84 billion in state and local government revenues
  • $380,000 in per-pipeline-mile property tax revenues in a typical Texas county.

“The activities of the Texas pipeline industry, which include the transportation of hydrocarbons from sources of exploration and production to refineries and end-users, are one vital component of the substantial job creation, investment and overall economic growth of the state’s economy,” commented Bradley Ewing, McLaughlin Endowed Chair of Free Enterprise and energy commerce professor in Texas Tech’s Rawls College of Business. “Provided that the pipeline industry maintains effective transportation capabilities, it will continue to generate economic benefits that will likely impact Texas for years to come.”

The full study is available on TPA’s website.

To contact the author, email mveazey@rigzone.com.



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