Are Higher Oil and Gas Prices Good or Bad for Texas

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Are Higher Oil and Gas Prices Good or Bad for
Texas?

• Presented to
• 2008 Texas Ports and Waterways Conference
• Galveston, Texas
• July 24, 2008
• Presented by
• Bernard L. Weinstein, Ph.D.
• Center for Economic Development and Research
• University of North Texas
• www.unt.edu/cedr

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Crude Oil and Natural Gas Prices 2006-2008
Crude Oil West Texas Intermediate Spot Average
(Dollars per barrel) Natural Gas Henry Hub Spot
(Dollars per thousand cubic feet) Prices as of
July 9, 2008 Source Energy Information
Administration, Bloomberg.com
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Where does our oil come from?
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(No Transcript)
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Growing energy consumption
Quadrillion Btu
Other
Nuclear
Natural Gas
Petroleum
Coal
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Oiloholics
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U.S. Energy Consumption, 1973-2004
Energy Consumption per Dollar of GDP

• Energy Consumption per person in million btu
• 1973 358 2004 340

Source Energy Information Agency, U.S.
Department of Energy
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Top Twenty Industries by Total Demand for Natural
Gas - Texas
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Top Twenty Industries by Natural Gas as
Percentage of Total Inputs
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Economic Impacts of a 1 per MCF Increase in
Natural Gas Prices on Texas Industries and
Households
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Unconventional Gas
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Barnett Shale 1
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Devon Expanding Frontiers
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Natural Gas Wells in North Texas
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Oil and Gas Property Tax Values
Source Texas Comptroller of Public Accounts
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Oil, Gas, and Minerals in School District Tax
Base, 2005
Source Texas Comptroller of Public Accounts
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Economic and Property Income Impacts of Devon
OperationsNine County Barnett Shale Operating
Area 2005
Includes indirect and induced property income
impacts to rents, royalties, dividends, and
corporate profits. Study area includes Denton,
Erath, Hill, Hood, Johnson, Palo Pinto, Parker,
Tarrant, and Wise counties.
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Economic and Property Income Impacts of Devon
Operations on the Overall Texas Economy, 2005
Includes indirect and induced property income
impacts to rents, royalties, dividends, and
corporate profits.
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Total Fiscal Impacts of Devon Operations
Based on activities in Denton, Erath, Hill,
Hood, Johnson, Palo Pinto, Parker, Tarrant, and
Wise counties. Includes counties, county
hospital districts, county community college
districts, special county taxing entities such as
road districts. Includes water districts and
other entities. _at_ Estimates of direct sales and
use tax payments are not available, but likely
total several million dollars each year.
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Economic and Property Income Impacts of Devon
Operations, Barnett Shale Operating Area,
2006-2010
Estimates not adjusted for inflation.
Includes indirect and induced property income
impacts to rents, royalties, dividends, and
corporate profits. Study area includes Denton,
Erath, Hill, Hood, Johnson, Palo Pinto, Parker,
Tarrant, and Wise counties.
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Largest States Ranked by Installed Wind Capacity
Source American Wind Energy Association The New
York Times
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Levelized Electricity Costs for New Plants2015
and 2030 (2005 mills per kilowatt-hour)
Source American Wind Energy Association
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Cost of Incentives for Power Generating Projects
in Texas( in millions except for per job data)
Source Texas Comptroller of Public Accounts and
authors calculations