As natural gas is playing a smaller role in the Texas power generation market from 2005 through 2011, the state lost $7.7 billion and forfeited 8,600 jobs, according to a study by Dr. Michael J. Economides, a chemical and biomolecular professor at the University of Houston, and Philip E. Lewis, a petroleum engineering consultant.

The study analyzes direct and value-added economic effects coal, natural gas and wind, which are the three dominant power generation energy sources in Texas. For the past two decades in the U.S., natural gas has become a growing energy source for power generation, but starting in 2005 Texas reduced its reliance on natural gas while national use rose.

Considering that nearly all of the natural gas used for electric generation in Texas is produced in-state, this $7.7 billion reduction includes $2.5 billion in lost potential revenue, including leasehold improvements, production royalties, severance taxes to state and local governments, sales taxes and local property taxes, and $530 million in lost wages in 2011.