CORPUS CHRISTI, Texas — An unintended effect of the Russian invasion of Ukraine is in an economic boost to the Texas oil and gas industry.
Texas Independent Producers and Royalty Owners Association (TIPRO) President Ed Longanecker said there may be some positive benefits.
"Employment opportunities, development and investment in prolific areas like the Permian Basin and the Eagle Ford Shale, and also the Barnett Shale with such high natural gas prices. So this is positive," Longanecker said.
Longanecker adds the impact will show because Europe depends on Russia's natural gas supplies.
"Last year we produced about 10.7 trillion cubic feet of gas and did not quite have a new record," Longanecker said. "We produced about 1.7 billion barrels of oil and that number is going to increase significantly."
Del Mar College History Professor Jim Klein said before the split, Russia thought of Ukraine as its "wheat basket," along with substantial deposits of crude oil and gas.
"The nations of western Europe will want to secure a long-term energy supply, they need to look at alternative energy sources," Klein said.
He agrees that the war will bring an increase in oil and gas prices which will benefit the Texas oil and gas industry in the short term.
"My sense is that if the Russian people suffer, it's not going to move Mr. Putin. I wish it would, but that doesn't seem to be the kind of man that he is," Klein said.
According to Longanecker, gas prices exceeded expectations last year.
"Even last year, the gross regional product, direct gross regional product for the Texas oil and gas industry, which is essentially GDP for a region of study, exceeded $200 billion. About 12-percent of the Texas economy," Longanecker said.
He added that with support industries included, that can translate to 30-percent of the State's entire economy.
More from 3News on KIIITV.com:
- 'Gender-affirming care is lifesaving': Texas mother, transgender son speak against Abbott, Paxton's gender-affirming directive
- Mother raises concerns following medical examiners office investigation, still waiting on son's final autopsy report
- Hero dog honored for alerting sleeping family about Rockport house fire
- 'Are you okay?' Mother thanks Corpus Christi Starbucks employees for looking out for daughter
- Residents urged to keep close eye on pets following increase in coyote sightings on Padre Island
Want to send us a news tip?
Put your name and contact information below so we can get in touch with you about your story should we have questions or need more information. We realize some stories are sensitive in nature. Let us know if you'd like to remain anonymous.
If you do not have a photo/video to submit, just click "OK" to skip that prompt.