The West Texas Cline Shale play will increase the economic output of the surrounding counties by $20.5 billion by 2022, the author of a study of the economic impact of oil and gas development in the region said Monday.
The study conducted by the University of Texas at San Antonio Institute for Economic Development examined the effect of oil and gas operations in 10 counties in the eastern part of the Permian Basin, which is somewhat east of the center of oil and gas activity in the basin, institute Research Director Thomas Tunstall said.
“One of the things we find is there are three significant shale formations in the Permian Basin, the Wolfberry/Spraberry, the Cline and the Wolf Camp. Most of the activity right now is targeted on the Spraberry formation, west of our study area, although we expect to see a lot of that activity move eastward over to the Cline Shale over time,” he said.
Tunstall said most of the development in the region is driven by oil drilling, because of crude’s price premium. But he added that gas also is produced in significant volumes. “We examined both, particularly in the producing counties west of the study area,” he said.