Just a few thoughts from the Eagle Ford Consortium Conference last week:
- Production is outpacing expectations – Almost double early predictions from UTSA
- Housing remains a concern, but investors are beginning to consider major multi-family developments
- Peak drilling in the Eagle Ford is expected at 2,500-3,000 wells per year
- The success/economics of downspacing will ultimately decide how far we go below the range of 65-130 acre spacing currently
- More than 70,000 direct Eagle Ford Shale jobs will be created by 2020
- Permits issued over the past three years in the Eagle Ford have gone 2009 – 94; 2010 > 1,000; 2011 > 3,000
- In the most active counties, sales tax revenue increases have been as high as 500%
- Oil prices remain the major risk to development
UTSA is currently working on an updated economic impact study and the expectation is for almost all figures to be revised upwards. The new study will be out in April.
Use the comments below to share your thoughts and notes from the conference. I only hit on the major themes I heard from talking to everyone in San Antonio.