A University of Texas at San Antonio study estimates that the oil and gas industry in an area of West Texas could have a $20 billion economic impact and support more than 30,000 jobs by 2022. While the Permian Basin in West Texas has a multitude of overlapping oil fields, the emerging Cline shale play on the northeastern edge could yield significant results.
The report looks at the Cline shale region, along with other counties nearby where the more established Wolfberry/Spraberry and Wolfcamp reservoirs are present.
The study focuses on 10 of the Permian Basin’s 39 counties: Fisher, Glasscock, Howard, Irion, Martin, Mitchell, Nolan, Reagan, Scurry, and Sterling counties. It also includes a secondary study of five Permian Basin counties that surround those 10 – Brown, Coke, Coleman, Runnels, Taylor, and Tom Green.
Early estimated recoverable reserves from the Cline were put at 30 billion barrels of oil, but analysts have since tamped down the grandiose expectations. Instead, most of the rigs in the Permian Basin are currently focused on the Spraberry trend.
UTSA is updating its Eagle Ford study and expects to release new numbers in September.