6. Significance of the Petroleum Related Industries in the Texas By 1969, Texas was the Nation's largest producer of petroleum, (see Fig. 32) has historically ac natural gas, and natural gas liquids. In turn, the coastal zone of Texas, consisting of 36 coastal counties counted for a large portion of the State's crude oil production and refining capacity. Table 22 indicates that since 1940, the coastal zone has produced an average of 28.5 percent of the State's crude oil production. Table 22. Volume of Crude Oil Production in the Coastal The largest and most significant industry in the Texas coastal zone is the refining of crude oil. This industry, historically located throughout the State close to production areas, has become concentrated in the coastal zone which now is capable of producing 90 percent of the State's 1/ Source: Texas A & M, 1973. refined oil. The refineries are located from Beaumont to Corpus Christi, but the heaviest concentrations are in the Beaumont-Port Arthur area (Table 23). This concentration of refining capacity Table 23. Maximum Daily Capacity of Crude Oil Refineries has required the development of extensive transportation networks (pipelines, railroads, barges, etc.) and has contributed to the development of a large petrochemical industry in the coastal zone. Since World War II, there has been a tremendous expansion of the petrochemical industry in this area, due to increased demand for its products, the availability of feedstocks, and other minerals, and the Source: Texas A & M, 1973. 1/ proximity of transportation facilities. Petrochemicals, for the purposes of this section, include chemicals derived from petroleum or natural gas excluding fuel and energy products such as gasoline, fuel oil, kerosene, natural gas for fuel, etc. The Texas Gulf coast has, by volume, the greatest concentration of chemical plants in the U.S., producing more than 40% of every basic petrochemical, 80% of the synthetic rubber, and 60% of the sulfur in the nation. Of the 139 plants operated by 82 firms in Texas, 67% by number, and 88% by capacity are located in the coastal zone. 7. Historical and Projected Economic Growth a. Introduction The OBERS Projections of Regional Activity in the United States 1/ was used as the basis for this discussion. These regional projections covered population, employment, and income for major industries for the years 1980, 1990, and 2000, with 1969 as the base year. Analysis on the regional level uses the unit of the "BEA economic area", developed by the Bureau of Economic Analysis of the U.S. Department of Commerce. The emphasis on cities as the hubs around and within which integrated economic activity concentrates, provided the conceptual framework for the delineations of these BEA economic areas. To calculate the regional data, national projections were first made for components of the Gross National Product (GNP). These projections were then converted into income originating from major industries. The national projections were disaggregated into regional projections using a proportionate growth factor between the region and the nation for each industry or growth component. It was assumed that most factors influencing this proportionate growth factor would continue, that regional earnings per worker and income per capita 1/ U.S. Water Resources Council, 1972 OBERS Projections, Regional Economic Activity in the United States, 1972. (See Attachment G.) would tend to converge on the national average, that regional employment/population would move toward the national ratio, and that workers will migrate to areas of expanding job opportunities. As depicted in Figure 35 the BEA areas landward of the proposed 9 sale are Nos. 140 (Beaumont-Port Arthur - Orange, Texas) and 141 (Houston, Texas). |