UTSA: Eagle Ford Shale Economic Impact – $87 Billion

Researchers Predict $137 Billion Economic Impact by 2023
Eagle Ford Shale Core Counties

Eagle Ford Shale Core Counties|Click to Enlarge

The Eagle Ford Shale had an economic impact of $87-billion in 2013, according to the University of Texas at San Antonio. That’s up significantly from 2012 when university researchers determined the oilfield had a $61-billion impact.

Read more: Economic Impact of the Eagle Ford Hits $61 Billion in 2012

Estimates of the Eagle Ford’s overall economic impact for the 21-county area included in the study exceeded $137-billion for 2023. That’s much higher than the 2022 forecast of $89-billion reported in the previous report. The basis for this increase researchers say has to do with the exceptional production numbers in the Eagle Ford. This month, the U.S. Energy Information Administration (EIA) predicts the Eagle Ford Shale will produce 1.51-million b/d crude oil. By 2020, consultancy Wood Mackenzie predicts production will rise to 2-million b/d. Advancements in well completions, and practices such as infill drilling will likely have an impact on production as operators continue to apply new and innovative techniques to access Eagle Ford reserves.

Read more: Eagle Ford Production Will Hit 1.5 Million b/d – Sept. 2014

In addition, new manufacturing projects associated with the natural gas renaissance in the U.S., as well as new processing, refining and port facilities are factors driving increases in the economic impact statistics. Just last week, the Environmental Protection Agency (EPA) gave a subsidiary of Conneticut-based Castleton Commodities International the green light for the construction of new petroleum process facilities near Corpus Christi, TX. The price tag for the project is estimated at $500-million.

Read more: EIA Grants Permit for $500 Million Corpus Christi Condensate Splitter

The study calculated the direct economic effects of oil and gas exploration, and “induced” economic activity. Stay tuned to EagleFordShale for further details and analysis of the study.

Read more at iedtexas.org

Riches from the Eagle Ford Boom – Video

Who's Benefiting from Oil Production and What You Can Do to Cash In

You may be curious to know exactly how some folks are getting rich from the Texas oil boom, and better yet, what you can do to ride the wave.

The KPRC-TV report provides a concise look at how development of the oil-rich Eagle Ford formation has brought wealth to the small South Texas town of Three Rivers. The story also provides a hint at an industry segment some locals suggest would be a money-maker.

Boom Times in Three Rivers, TX

Prior to the beginning of the boom in 2008, Three Rivers, which is about 70 miles South of  San Antonio, TX, was a sleepy little town, but that has all changed. For local residents “oil money” has changed their lives and the town in which they live. Recently, Three Rivers built an $11-million dollar junior-senior high school from tax revenues derived from oil & gas development. And some locals with mineral rights in the area have benefitted greatly from lease bonuses and “mailbox money” (i.e. royalty payments) from oil & gas production.

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According to the University of Texas at San Antonio, the Eagle Ford Shale had a $61 billion economic impact across a 20-county area in 2012. That’s a big chunk of change, and the money is mostly funneling into the pockets of oil & gas company executives, tertiary industry, the general workforce, mineral owners, investors and shrewd businessmen.

Getting Rich from the Eagle Ford Shale

So, the question is, what can you do to make money from the Eagle Ford boom? The best thing to do now for the majority of folks is go to work in the field, or open a business that serves the needs of the workforce. Certainly, everyone has different circumstances to consider, and not everyone has the necessary capital to open a business, but the money is there for the taking – you just have to be willing to work hard for it.

Oil patch jobs have provided individuals and families with lucrative salaries. Some rig workers can make upwards of 80k – 120k annually. Experience counts for certain positions, but entry-level opportunities can still be had as development continues to ramp up in the region. CDL Drivers are also in high demand in the Eagle Ford for hauling crude, supplies, frack water, etc. Their salaries can also top six figures.

Due to Eagle Ford development being concentrated in mainly remote areas, a growing workforce exists without access to a wide variety of amenities (i.e. washaterias, restaurants, grocery stores, etc.). Opportunities for investors to get on-board with projects in the service industry have the potential for paying off, atleast up-front while there is less competition.

UTSA Eagle Ford Study Touts Oil & Gas Benefits

$3 Billion Paid In Royalties in 2012
UTSA Eagle Ford Study

UTSA Eagle Ford Study | Click to Enlarge

The latest report from UTSA that measures the impact of the Eagle Ford in South Texas includes impressive numbers. Tom Tunstall’s group has done a great job keeping us up to date on the magnitude of the South Texas oil and gas boom. [Read more…]

Economic Impact of the Eagle Ford Hits $61 Billion in 2012 – UTSA – Press Release

Oil & Gas Supports 116,000 Full-time Jobs in 2012
Economic Impact of the Eagle Ford Shale

Economic Impact of the Eagle Ford Shale | Click to Enlarge

Development of oil and natural gas in the Eagle Ford Shale added more than $61 billion in total economic impact during 2012, according to a study released today by the Center for Community and Business Research in The University of Texas at San Antonio Institute for Economic Development. In addition, the region supported 116,000 full-time jobs for workers in oil and gas, drilling, support operations, pipeline construction, refineries and petrochemicals. [Read more…]

Dallas Fed Report “Eagle Ford Shale Brings Wealth to South Texas”

Drilling, Wages, and the Economy on the Rise

The Dallas Federal Reserve bank is the latest organization to publish a report touting the economic benefits of the Eagle Ford.

Recent data suggest that the oil boom’s impact on jobs, income and spending in the region has been profound.

Other highlights include:

  • Between 2007 and 2011, gas production rose 20%, oil 80%, and condensate 541%
  • From Feb 2010 to Feb 2012, the rig count grew from 42 to over 225
  • Horizontal drilling accounts for over 90% of Eagle Ford wells
  • An estimated lease bonus of $1,500/acre x 5 million acres = $7.5 billion paid since 2007
  • Estimated drilling spend has risen from $1.8 billion in 2007 to $14.6 billion in 2011
  • Local royalty payments increased by $584 million from 2007 t0 2011
  • Biggest industry winners include: oil exploration and services, construction, wholesale and retail trade, and real estate.
  • Seasonally adjusted retail sales in the 23 county area grew 15.4% compared to 6% for Texas and 7.4% for the U.S.
  • Sales tax revenues grew 9.3% over the same period
  • Eagle Ford jobs represent 2% of the Texas workforce
  • Annualized growth in weekly wages was 14.6% vs. 6.3% for the U.S. [Read more…]

Economic Impact of the Eagle Ford Shale – UTSA Study

UTSA’s Institute for Economic Development is releasing its latest study at two luncheons. One on May 9 in San Antonio and another in Cotulla on May 11.

Here are the highlights from the San Antonio event:

In 2011:

  • Eagle Ford Shale development supported almost 50,000
  • Total impact of the play was $25 billion
  • Companies paid $3.1 billion in salaries related to the play’s development
  • 14 county core area has seen average salaries rise 27-34% across the board

In 2021:

  • Total economic impact could range from a low case of $25 billion to a high case of $96 billion
  • Eagle Ford could support 117,000 jobs. More than 2.5 times current employment

On a side note:

  • UTSA inherited 5,000 acres years ago and is getting royalties from one lease that is paying $25,000 per month. The money is going straight to scholarships
  • All statistics were taken from a mid-case or moderate view of development. If the high case comes to fruition, the play could contribute even more to South Texas.

Tom Tunstall and crew did a great job presenting the findings. We’re blessed to have great resources like the Institute of Economic Development right in our backyard.

We were in San Antonio providing live updates. Be sure to Follow EagleFordShale.com on Twitter to get future updates. If you’d like email updates on news in the Eagle Ford, be sure you’re getting our daily or weekly email updates.

You can read more about the study at utsa.edu