Texas cities that host petrochemical plants on average have lower income, slower population growth, less job growth, higher poverty, and higher unemployment than the statewide average, according to a study by the Institute for Energy Economics and Financial Analysis (IEEFA).

The Sept. 3 IEEFA report examines the economic performance of Texas Gulf Coast cities that host oil, gas, and chemical facilities. Cities examined include Port Arthur, Orange, Beaumont, Mont Belvieu, Channelview, Baytown, Deer Park, Pasadena, La Port, Freeport, Ingleside, Corpus Christi, and Gregory. The study focuses on ethane crackers, which convert ethane, a key component of natural gas, into ethylene, a building block of plastics and other chemicals.

The study found that these “petrochemical cities” have on average higher unemployment and poverty rates than the statewide average – 7 percent compared to 5 percent statewide for unemployment, with 18 percent of the population at or below the poverty rate compared to the statewide average of 14 percent poverty.

"Our conclusion is not one of causation—we are not suggesting these cities underperformed because they hosted petrochemical complexes,” the study states. “Instead, we observe no data supporting claims made by developers that these communities are better off economically because they hosted the petrochemical capacity expansion that has occurred since the shale revolution.”

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