Eagle Ford Shale Continues to Exceed Projections
The University of San Antonio Institute for Economic Development has been monitoring and assessing the economic output of the Eagle Ford Shale and the job and energy numbers just keep getting better. The release this month of their fourth economic assessment titled “Economic Impact of the Eagle Ford Shale” displays the exponential growth that has driven job creation across Texas.
The current study found that in 2013, the Eagle Ford Shale generated about $87 billion in economic output, employed 155,000 people and added $2.2 billion in revenues to local and state governments. There’s a reason why Texas leads the country in job growth. As the Eagle Ford Shale is receiving the lions-share of capital investment from across the country, these numbers will continue to climb.
With economic models often underestimating the energy potential in new plays, we can be excused for wondering if even this study ascribes conservative economic numbers. The University of San Antonio study has increased economic output each year noting that, “For 2023, the 21-county impact is estimated to exceed $137 billion, far higher than the $89 billion forecast for 2022 that we reported in the March 2013 economic impact study.”
Critically, this new economic reality does not display the boom and bust indicators of past energy cycles but has developed signs of a diverse and integrated economy. The study notes that, “The economic impact of the Eagle Ford Shale has the potential to transform cities, towns and counties in South Texas by providing the resources to ensure community sustainability.”
As recent as 2008, the Eagle Ford Shale was producing 581 barrels of oil and condensate per day. Those production numbers have since doubled, with an outlook for continued growth in the years ahead. Those are numbers we can definitely work with.