*UPDATE III* The Eagle Ford Soars
*UPDATE III* (Mar.28, 2012; 5:21 p.m. ET): Not only is the Eagle Ford soaring – it’s flying out of sight. This week, ongoing research from The University of Texas at San Antonio Institute for Economic Development found that development of the Eagle Ford Shale in 2012 added more than $61 billion in total economic impact across 20 counties in Central and South Texas. It also was responsible for creating more than 116,000 jobs, including 46,000 direct jobs in the field. According to the study, Eagle Ford development also generated:
- $4.69 billion in total wages;
- $28.43 billion in Gross Regional Product (value added);
- $1.01 billion in total local revenues; and
- $1.24 billion estimated state revenue.
The full study on the Eagle Ford’s economic impact can be found HERE .
*UPDATE II* (Mar.13, 2012; 5:03 p.m. ET): This week, Commissioner David Porter and several state officials announced the release of a major project: the Eagle Ford Shale Task Force Report. Recognizing the importance of community involvement and stakeholder engagement, Commissioner Porter formed the 24-member Task Force in 2011, assembling a group of stakeholders from various interests and areas of expertise – from community leaders and energy producers to water representatives and environmental interests — to ensure the continued, successful, safe development of the Eagle Ford Shale. According to the report:
“In 2011, the Eagle Ford Shale supported almost 50,000 full-time jobs in 20 counties and contributed over $25 billion dollars to the South Texas economy. From 2011 to 2013, daily hydrocarbon liquid production, including natural gas liquids, increased from 100,000 to 700,000 barrels per day. These developments have made South Texas one of the most prominent energy producing regions in the United States.”
After over a year of work, the report provides solutions to issues like workforce development, infrastructure (roads, pipelines, housing), water quality, state regulations, air emissions, and social services, among many others.
*UPDATE* (Dec. 11, 2012; 11:30 a.m. ET): A report from Wood Mackenzie found that companies will invest an estimated $28 billion in capital expenditures in the Eagle Ford over the course of 2013. As the report highlights, investment in the Eagle Ford will be the top energy investment across the globe, surpassing even the Kashagan Project in Kazakhstan – one of the largest oil fields found in the past 30 years.
As Wood Mackenzie research analyst Callan McMahon noted, Eagle Ford activity is “now in full swing” and “shows no sign of slowing down.” This means real jobs and real opportunities for the United States economy, thanks to Shale. Just look to neighboring San Antonio where new growth, business and jobs are emerging every day. The Houston Chronicle and San Antonio Business Journal have the full story.
- Original post, May 23, 2012 -
On January 10th, 1901, the Lucas No. 1 well made history when it began gushing oil in the town of Spindletop, Texas. It didn’t take long before the heretofore unassuming well was producing more than 100,000 barrels of oil per day, redefining production rates and catapulting Texas to the front stage of America’s new energy frontier.
Over a century later, a lot has changed for the Lone Star State – new technologies, seismic testing, well log analysis, the Dallas Cowboys – but one thing has remained the same: From Spindletop to George Mitchell’s ingenious combination of hydraulic fracturing and horizontal drilling in the Barnett Shale, Texas has long stood as the hub of America’s energy industry.
So it’s no surprise, then, that the Eagle Ford Shale in South Texas has become one of the new, premier sites for oil and gas development, as a recent study by the University of Texas at San Antonio highlights.
The growth in the Eagle Ford has been nothing short of amazing: Oil production has increased more than six-fold since 2010, condensate production has tripled, and natural gas production has more than doubled. Those numbers are impressive enough in and of themselves, but the increasing availability of domestic, affordable energy isn’t the only benefit that the Eagle Ford is delivering.
Consider: The 14 county region encompassing the Eagle Ford Shale development area was boosted by nearly $20 billion in economic growth in 2011. According to the UTSA study, the specific benefits to the state and local economies are:
• 38,000 full-time jobs supported
• $2.6 billion in salaries and benefits paid to workers
• $10.8 billion in gross regional product (value added)
• $211 million in local government revenues
• $312 million in state revenues, including $120.4 million in severance taxes
In the 20 county region surrounding the play – inclusive of the producing counties plus six others experiencing substantial indirect activity — development provided approximately $25 billion in economic impact, including more than 47,000 full time jobs, $12.63 billion in gross regional product (value added), and over $600 million in local and state government revenues. The study also found that Eagle Ford development could support 116,972 full-time jobs, $42 billion in gross regional product, and more than $2.75 billion in state and local government revenues in 2021.
As this report again confirms, the development of America’s oil and natural gas resources has created real and tangible benefits across the nation, reinvigorating communities, and generating millions in state and local revenues. And with one in every 10 new jobs created as a result of oil and natural gas development in 2011, the job-creating potential of continued production is truly extraordinary across the nation.
As for Texas’ future? More jobs, more economic growth, and more tax revenues to pay for vital public services. Without question, the Eagle Ford Shale is and will continue to be an economic engine for South Texas for years and years to come.