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pipeline construction
July 2023 Exclusive Story

Oil and Gas Pipelines Support Texas’ Economy

AUSTIN, TX.—In 2022, the Texas midstream industry contributed more than $60.5 billion to the state’s economic output, according to a new study conducted by the Center for Energy Commerce at Texas Tech University and commissioned by the Texas Pipeline Association (TPA).

The study estimates that through ongoing operations and 2022 construction alone, the Texas oil and gas pipeline industry also provided:

  • More than $34 billion in additional gross state product;
  • Nearly $3.6 billion in state and local government revenues;
  • More than 234,000 jobs; and
  • An estimated $12,250 in property tax revenues generated per mile of pipeline for a typical Texas county.

The midstream industry’s strength will continue, the study indicates. Even by a conservative estimate, it calculates that during the next 40 years, the pipeline industry is expected to generate cumulative economic impacts of:

  • $1.86 trillion in economic output;
  • $1.05 trillion in additional gross state product;
  • $110.34 billion in state and local government revenues;
  • Nearly 525,000 jobs; and
  • $377,000 in cumulative property tax revenues generated per mile of pipeline for a typical Texas county.

“The 2022 Analysis of the Current and Future Economic Impact of the Texas Oil and Gas Pipeline Industry study shows that the Texas midstream industry is an economic powerhouse, delivering billions of dollars to state and local coffers and providing hundreds of thousands of well-paying jobs,” says TPA President Thure Cannon. “Without the network of natural gas gathering and transmission lines and storage facilities, Texas would not only be deprived of the vital fuels and hydrocarbons it needs to grow and thrive, but also the revenues, taxes and jobs that bolster the state’s economy.”

The study was authored by Bradley Ewing, who holds the McLaughlin Endowed Chair of Free Enterprise and is professor of energy commerce in the Rawls College of Business at Texas Tech University. “The Texas midstream industry will be a crucial player on the global playing field far into the future, while delivering trillions of dollars in economic benefit and more than half a million jobs to the state,” he says. “It is clear that pipelines are of great benefit to the residents and businesses of this growing state.”

You can read the study at 2022 Analysis of the Current and Future Economic Impact of the Texas Oil and Gas Pipeline Industry.

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