Economic impacts of oil and gas clusters: Analyzing the influence of oil and gas revenues in Brazil and Texas

Abstract

This study analyzes the correlation between oil and gas firms and their contribution to regional development in the Brazilian southeast coastal region and in the State of Texas from 2013 to 2017. The study uses Pearson's correlation to examine the effects of oil revenues distributed in local economies and their tax contributions on seven local development indicators. Results show a strong correlation between oil and gas incomes and GDP growth in both regions, with Brazil being more dependent on these resources. However, the correlations do not necessarily translate into broader societal advancements, indicating a need for development policies that support sustained oil and gas clusters to improve socio-economic conditions. The findings underscore the importance of strategic planning in resource-rich regions to mitigate risks associated with resource dependency.