ACCESS NUMBER: 30797 

STUDY TITLE: A Socioeconomic and Environmental Issues Analysis of Oil and Gas 

Activity in the Outer Continental Shelf of the Western Gulf of Mexico 

REPORT TITLE: Socioeconomic and Environmental Issues Analysis of Oil and Gas 

Activity in the Outer Continental Shelf of the Western Gulf of Mexico

CONTRACT NUMBER: 14-35-0001-30797 

SPONSORING OCS REGION: Gulf of Mexico 

APPLICABLE PLANNING AREA: Western Gulf of Mexico 

FISCAL YEAR(S) OF PROJECT FUNDING: 1995 - 2000 

COMPLETION DATE OF REPORT: February 2002 

COST(S): FY 1995: $172,467; CUMULATIVE PROJECT COST: $172,467 

PROJECT MANAGER(S): W.R. Kelley 

AFFILIATION: University of Texas at Austin 

ADDRESS: P.O. Box 7726, Austin, Texas 78713 

PRINCIPAL INVESTIGATOR: William R. Kelley, Ph.D. 

KEY WORDS: Public concerns; economic effects; social effects 

BACKGROUND: This is one of three “stakeholder issues” studies funded in 

response to recommendations of a MMS GOMR socioeconomic workshop held in 

New Orleans in 1992. This study addresses the Texas coast (the Western Planning 

Area). The others addressed the Central and Eastern Planing areas. The three 

studies were separately funded separately and used different research 

methodologies. This study is organized around five topical areas that grew from the 

semi-structured discussions: community dependency on industry, perceived benefits 

to the community from oil and gas activities, general public perceptions of the 

industry, and the appropriate role of the federal government. The report emphasizes 

the variation of responses and provides numerous verbatim quotations. 

OBJECTIVE(S): To identify the issues and concerns of stakeholder groups in the 

coastal region (a five-county study area). To understand the relationships among 

various issues and groups. 

DESCRIPTION: The research focused on the perceptions individuals held on a 

number of issues and on their perspectives about the relationship between the oil 

and gas industry and Texas coast communities. An open-ended discussion format 
ACCESS NUMBER: 30797 

was used to allow elaboration on issues; unanticipated results were pursued. The 

approach is not easily applied to generalizing to the larger population. A form of 

“snowball” sampling was used. Coastal counties were the primary sampling unit. 

Using census and state data, five counties were selected based on their specific 

experience and varied levels of involvement with the oil and gas industry. Counties 

were chosen for their focus on coastal tourism and recreation, investment in 

downstream industry activities, and involvement in exploration activities. Major and 

smaller communities were included. Community leaders in three sectors were 

targeted: business, government, and environmental organizations. Knowledgeable 

individuals were identified in each sector. As typical in snowball sampling, these 

were used to identify other stakeholders. Discussions progressed until responses 

became redundant. A total of 39 semi-structured discussions were conducted, 

generally lasting 45 min. to an hour. 

SIGNIFICANT CONCLUSIONS: In spite of the 1980s oil price bust, Texas coastal 

communities continue to be dependent on the oil industry. Given this level of 

dependency, one could easily oversimplify the social and economic issues salient to 

the people in coastal communities. In actuality, the relationships between the oil and 

gas industry and the communities that host its various activities is complex, perhaps 

best viewed as a series of balances between competing interests, needs, values, and 

goals. The primary lesson of the 1980s is that oil and gas is volatile. One solution is 

to create a local context in which the industry can thrive as exemplified by tax 

abatement agreements. Another solution is to encourage other industries (e.g., 

tourism or Houston’s high-tech) or government projects (e.g., Jefferson’s prisons). 

These are rational strategies but have not, to date, erased the basic dependency. 

Another area of completing interests is environmental protection. Here, again, there 

are no clear divisions. The stereotypical notion of “no-growth environmentalists” vs. 

“uncaring industry” is far too black-and-white to accurately describe the relationship 

between these two groups in Texas coastal communities. In fact, after years of 

interaction, the trend in many communities is toward increased dialogue, more 

effective communication, and even the development of consensus-building activities 

involving these two interest groups. The biggest area of concern is environmental 

degradation—oil spills and beach tar and trash in tourist areas, air and water pollution 

in other areas. Even here there are no absolute divisions among interests. People 

near the industry see more of its problems; people further away more of its benefits. 

This has led to active Environmental Justice movements in Corpus Christi and 

Jefferson County. 

STUDY RESULTS: Community dependency: All Texas coast communities are 

dependent to some degree on offshore oil. Many individuals compared current levels 

with dependency before and during the 1980s bust. Type and degree of involvement 

varied across the region. Most heavily invested communities were involved in 

downstream refining and petrochemicals. Communities invested in tourism also 

remained heavily dependent on oil. Even in highly involved areas, dependency and 

job opportunities have markedly declined since the 1980s. Diversification has been 

most successful in Houston’s large economy. In Jefferson County, the construction 
ACCESS NUMBER: 30797 

of prisons has decreased dependency. The vast majority of port activity is oil related, 

related particularly to the increasing downstream activities. Benefits: Benefits come 

primarily from employment opportunities. Cities hosting refineries and petrochemical 

companies are particularly dependent on this form of employment. Such jobs are 

higher paying with better benefits than most in the communities. The industry 

created employment opportunities throughout the communities. Even areas 

dependent on tourism and “bedroom communities” were viable because of the 

industry. Taxes from refineries and petrochemical plants were also seen as a major 

benefit. Concerns: Small spills occur “with some frequency” but “the big one” is the 

worry. Of particular concern are possible effects on tourism. Air, water and soil 

pollution are seen as a problem, particularly with oil refining and petrochemicals. The 

situation is viewed as much improved from the past, but needing to improve more. 

The perception of “environmental racism” is a problem in Corpus Christi and, to a 

lesser degree, Jefferson County. Concerns surrounding drilling and production 

activities were fewer. There is concern that on- or near-shore drilling might affect 

birding. Downsizing, and its effects on local employment, is a non-environmental 

concern. On the Texas coast, refineries are the focus of most concerns. Residents 

near refineries do not receive most of the benefits-which created resentment both of 

industry and of other residents. Community/industry relationships. Observations in 

this category are limited by the sample. Leaders were asked for their impressions of 

the attitudes of the general public. The study finds no consistent attitude and great 

variation from positive and trusting to outright distrust. There is no single relationship 

between oil and gas and the communities in which they do business. A multitude of 

situations, interests, and experiences have led to a variety of perspectives in this 

area. There was a positive trend toward less “us vs. them” and more cooperation. 

Perceptions of Federal involvement: MMS and its role is not familiar even among 

government and business leaders. Most respondents believe the area had benefited 

significantly from federal involvement, particularly in environmental areas. Some felt 

more power should be given to states. Others supported a strong federal role. 

Conflicting views were not about the past, rather they were about how much 

additional regulation should occur. 

STUDY PRODUCT(S): Kelley, William R. 2002. A socioeconomic and 

environmental issues analysis of oil and gas activity in the outer continental shelf of 

the western Gulf of Mexico. U.S. Department of the Interior, Minerals Management 

Service, Gulf of Mexico OCS Region, New Orleans, Louisiana. OCS Study MMS 

2002-011.