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Researchers Develop Economic Impact Report for Pipeline Industry

Texas Pipeline Association commissions university for first ever analysis of this kind.

Written by George Watson

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A group of four Texas Tech University professors were the driving forces behind a report commissioned by the Texas Pipeline Association (TPA) to show the economic impact the Texas oil and gas pipeline industry has on the state.

Bradley Ewing, a professor in the Rawls College of Business who specializes in the areas of energy, economics and law, led the group, which concluded that, in 2013, the pipeline industry contributed $33 billion in economic impact. The report also stated that the pipeline industry supports more than 165,000 high-paying jobs, added $18.7 billion more in gross state product and injected $1.6 billion in state and local government revenues.

This marked the first time the TPA has commissioned an economic impact report, and having Texas Tech faculty work on the study signifies the importance of the industry to this part of the state.

“It indicates we are recognized by the energy industry as leaders/experts in energy-related research,” Ewing said, “specifically in energy economics and petroleum engineering where we are able to conduct inter-disciplinary research in new ways.”

Also on the team that developed the report are Terry McInturff, professor of practice and chairman of the area of energy, economics and law in the Rawls College of Business, Marshall C. Watson, professor and chair of the Bob L. Herd Department of Petroleum Engineering in the Whitacre College of Engineering, and Daan Liang, an associate professor in the department of construction engineering and engineering technology in the Whitacre College of Engineering.

Three petroleum engineering students – Tariq Ali, Roland O. Ezewu and Ibegbuna Ezisi – all contributed to the project as well.

(l-r) Ewing, Watson, McInturff and Liang

“We are proud to work alongside industry partners such as the Texas Pipeline Association, who recognize the value of employing the Texas Tech University research enterprise, which utilizes the scientific process to address critical issues of the day,” said Russell Thomasson, director of corporate engagement, for the Texas Tech University System.

The report also estimates that, over the next 10 years, the pipeline industry will contribute more than $374 billion in total economic impact, sustain 171,000 high-paying jobs annually, add more than $212 billion in gross state product and inject more than $19.5 billion in state and local government revenues.

Texas also has 48 percent of the total number of oil rigs in the United States and 25 percent of the world’s total rig count.

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Rawls College of Business
Business Administration Building

The Rawls College of Business accounts for about 25 percent of Texas Tech graduates.

The college has a full-time teaching staff of roughly 100 in five departments: accounting, finance, information systems and quantitative science, management and marketing.

The college offers an accredited weekend MBA for Working Professionals program.

Dedicated to connecting students, alumni and employers, the Career Management Center assists Rawls College students with their transition to the world-of-work, and supplies prospective employers with top-notch candidates, ready to make an immediate contribution.

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Whitacre College of Engineering
The Edward E. Whitacre Jr. College of Engineering

The Edward E. Whitacre Jr. College of Engineering has educated engineers to meet the technological needs of Texas, the nation and the world since 1925.

Approximately 4,300 undergraduate and 725 graduate students pursue bachelor’s, master’s and doctoral degrees offered through eight academic departments: civil and environmental, chemical, computer science, electrical and computer, engineering technology, industrial, mechanical and petroleum.