'Powerhouse' Texas Pipeline Industry Contributes Billions to Economic Output

(PGJ) – The Texas midstream industry is a powerhouse that contributes to the state’s economic output, jobs and government revenues, according to a new study conducted by the Center for Energy Commerce at Texas Tech University and commissioned by the Texas Pipeline Association (TPA).

oil and gas pipelines

The 2022 Analysis of the Current and Future Economic Impact of the Texas Oil and Gas Pipeline Industry study shows that through ongoing operations and construction in 2022 alone, the Texas oil and gas pipeline industry provided more than $60.5 billion in economic output.

In addition, the Texas oil and gas pipeline industry contributed more than $34 billion in additional gross state product and nearly $3.6 billion in state and local government revenues. The pipeline sector in Texas also added more than 234,000 jobs and an estimated $12,250 in property tax revenues generated per mile of a pipeline for a typical Texas county.

The strength of the midstream industry is expected to continue. According to the study, the pipeline industry is conservatively expected to generate $1.86 trillion in economic output, $1.05 trillion in additional gross state product, $110.34 billion in state and local government revenues, 525,000 jobs, and $377,000 in cumulative property tax revenues generated per mile of a pipeline over the next 40 years.

Pipelines transport a variety of energy products, including natural gas, crude oil and refined petroleum materials that are used for heating homes, generating electricity, fueling vehicles and manufacturing a wide range of consumer goods. Without pipelines, it would be difficult to transport these products efficiently, cost-effectively and safely, which would ultimately result in higher energy costs and decreased availability of the hydrocarbon products that Texans and all Americans rely on every single day.

“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,” said study author Bradley Ewing, PhD, 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. “It is clear that pipelines are of great benefit to the residents and businesses of this growing state.”


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