Report: How the Texas Shale Revolution is Spurring a Manufacturing Renaissance

Wed, June 06, 2018

The report, entitled Revolution to Renaissance: How Fracking Has Spurred a Resurgence in Texas Manufacturing, explores how an abundance of oil and natural gas has made manufacturing more competitive in Texas, including lower electricity costs and more affordable feedstocks to help make everything from plastics and cleaners to clothes and medical equipment. As a result, massive investments have been made into Texas’ manufacturing industry from all over the world – leading to the construction of new facilities, increased output, a rise in exports, and expanded infrastructure. 

Key findings in the report:

  • The manufacturing sector employs 878,000 people in Texas.
  • Texas manufacturing output increased 50 percent between 2009 and 2016 – tracking the growth of shale oil and natural gas development over the same period.
  • Shale gas has reduced costs for U.S. chemical companies by 8 percent.
  • From 2012 to 2015, shale-related manufacturing in Texas accounted for $441 billion in economic output.
  • The value of Texas shale-related manufacturing exports increased 68 percent between 2007 and 2017.
  • New chemical manufacturing investment in Texas is expected to generate $43 billion in additional chemical industry output, support 182,000 permanent new jobs by 2025, and add nearly $14 billion in wages for Texas workers.

“We all know that the fracking revolution has been an economic driver in Texas – creating thousands of direct jobs, providing low-cost energy, and generating billions of dollars in funding for schools and emergency services. But this report shows the extended benefits and reach of oil and natural gas production. It’s not only putting people to work in the oil fields, but creating new jobs and opportunities for other sectors – including manufacturing,” said Steve Everley, spokesman for Texas for Natural Gas. “Companies from around the world are flocking to Texas thanks to our abundant and inexpensive energy resources.  From chemicals to plastics, tech and refining – all aspects of manufacturing are benefiting from Texas shale.” 

“The Texas manufacturing sector is among the most energy-efficient industries in the world, but electricity costs and the availability of feedstock still make a huge difference in where companies decide to invest,” said Tony Bennett, President, Texas Association of Manufacturers.  “The shale revolution has been a game changer for Texas manufacturers by helping to reduce power prices and providing an abundance of feedstock that has helped companies to expand. All of this has spurred billions of dollars in new investments and created high-paying jobs for Texans.”

According to the American Chemistry Council, “Robust domestic natural gas supplies have spurred historic levels of new chemical industry investment in the United States. Since 2010, companies have invested $194 billion across 325 projects, including new facilities, expansions and restarts. The new activity could add 846,000 jobs to our economy by 2025.” 


The full report can be downloaded here