Employment Growth Continues In The South Texas Eagle Ford – Dallas Fed

The Energy Sector Of The Economy Is Expected To Improve Further
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The Federal Reserve Bank of Dallas released its most recent beige book and Eagle Ford job growth was noted as part of the steady labor market.

The report states “Financial firms added employees to comply with regulatory stress testing and wealth management, and noted employment growth in Austin and the Eagle Ford Shale area. Several contacts reported difficulty finding qualified people to fill vacancies…. A construction-related manufacturer noted truck drivers were in short supply.” [Read more…]

Drought = Fires in Texas

Texas Fire MapThe Texas drought is wreaking havoc on the state. South Texas is blanketed with smoke and fires near Bastrop have taken lives and hundreds of homes. Wildfires have spread throughout Texas and destroyed millions of acres. If you live in affected areas, please use any and all precautions.

Weather reports indicate we’ll get a reprieve from the wind over the next few days. Firefighters should have a better chance of controlling the fires if that proves correct.

To our knowledge, the fires have not directly impacted any oil & gas operators, but that can change if we don’t get rain sooner or later. We don’t have any areas of the state that are immune to the risk of fires. [Read more…]

Drought Gets Worse as the Eagle For Picks Up

The drought and the renewed call on water resources from the Eagle Ford Shale has been a concern since the beginning of the year when South Texas fell below normal rainfall levels. Water needed for hydraulic fracturing or fracking is now a pull on resources in what is officially the second worst drought on record. Operators are working to limit the impact on South Texas and are beginning to recycle, as well as drill deep water wells. The problem is, in today’s world of enormous frack jobs, oil & gas companies use millions of gallons of water to complete each well.

Water wells, that are often drilled on the well pad itself, can cost as much as $500,000. That can make completions cost prohibitive in areas with lower economic returns.¬†What was bad a few months ago has only gotten worse, but you can bet the industry is already tackling how to best handle the drought. This isn’t the first place water has been an issue. The town of Big Spring is already treating recycled wastewater and you can bet more local towns in South Texas will begin doing the same. [Read more…]