The Marcellus Shale, Eagle Ford Shale and West Texas’ Permian Basin should be thanked for the number of jobs that have been created over the past few years. Texas accounts for close to half of the net new jobs created since the recession began in 2007. Pennsylvania comes in third behind New York and then there is the rest of the country that has only created a few more jobs than Texas. That’s 47 states if your counting. Wow.
The energy industry is the main driver in both Texas and Pennsylvania. I think I’m hearing something I like. US energy creating US jobs. That sounds like a good combination to me.
Not many mineral owners have taken notice, but there have been budget proposals the past two years that would eliminate federal tax breaks for the energy industry. Those proposals included a repeal of the “percentage depletion allowance” for mineral owners. Think about trying to figure out the reserves and costs that go into your property. It’ll make your accountant happy and your wallet a little lighter. This article highlights the big positive if we allow energy companies to do what they do best. Royalty dollars are paid and jobs are created.
Using Bureau of Labor Statistics (BLS) data, Dallas Fed economists looked at state-by-state employment changes since June 2009, when the recession ended. Texas added 265,300 net jobs, out of the 722,200 nationwide, and by far outpaced every other state. New York was second with 98,200, Pennsylvania added 93,000, and it falls off from there. Nine states created fewer than 10,000 jobs, while Maine, Hawaii, Delaware and Wyoming created fewer than 1,000. Eighteen states have lost jobs since the recovery began.
The data are even more notable because they’re calculated on a “sum of states” basis, which the BLS does not use because they can have sampling errors. Using straight nonfarm payroll employment, Texas accounts for 45% of net U.S. job creation. Modesty is not typically considered a Texas virtue, but the results speak for themselves.
Read the full news release at wsj.com