2011 Texas Business Growth Was Fueled By Fossils
In 2011, the oil and gas industry in Texas experienced growth in nearly every sector, including drilling permits and employment. According to a report by the Texas Alliance of Energy Producers (TAEP), higher oil prices in Texas resulted in a ripple effect that resulted in an across-the-board increase in energy payrolls in the state. As a result, the state of Texas enjoyed strong economic performance in 2011 while the rest of the United States continued to struggle with the effects of a recession.
How Big Was The 2011 Texas Oil Boom?
The TAEP report shows that drilling permits in Texas increased by nearly 25 percent in 2011, with a total of 22,480 permits requested. Each one of these drilling permits represents hundreds of thousands of dollars of investment, a large percentage of which goes to drill rig operators, equipment technicians, and support staff. The report also shows that Texas oil and gas employment increased 15 percent in 2011 (more than 224k jobs in total), supporting the claim that the growth in fossil fuels in Texas is directly related to more jobs in the Lone Star State.
Put another way, there were 30,000 new oil jobs in Texas in 2011. Considering that many of these jobs went to engineers, highly paid technicians, and skilled laborers, oil was a major economic boost for Texas.
Texas Is No Stranger to Oil Booms
This is not the first time Texas has experienced strong growth related to oil. The Spindletop strike of 1901, once considered the world's most productive oil source, is considered the very first Texas oil boom. Numerous smaller local oil booms occurred throughout Texas for the next 40 years – so many that the image of an oil derrick was once synonymous with Texas.
Today, Texas continues to reap the rewards of solid oil production figures, as evidenced by the report by the Texas Alliance of Energy Producers. The Spindletop strike had a ripple effect on other industries in the state for decades, so much so that it's hard to separate the "oil economy" in Texas from all Texas business listings.
The good news for the people of Texas is that, according to the U.S. Bureau of Labor Statistics, the unemployment rate in Texas is hovering around 7.4 percent. This figure is lower than the national average and a good indicator that Texas Tea continues to boost the state's economy.
About the Author: Jason Lancaster is a big fan of Texas toast, works with a website that publishes company business profiles, and understands that there is no basement in the Alamo.