Eagle Ford Opportunities - Governor's Small Business Forum Highlights

Opportunities of the Eagle Ford Shale, part of the Governor's Small Business Forum, was the title of the event in La Vernia on March 20. It was a great opportunity for small businesses to hear directly from operators in the area and to get bits of advice for working with the industry.  If you're interested in future events, you can track future gatherings at our Eagle Ford Events & Conferences page. I've included a few highlights/notes from the various speakers below:

Thomas Tunstall, Ph D. UTSA

  • He will be surprised if there isn't significant development in Mexico
  • U.S. energy imports are falling
  • Wildcard for the Eagle Ford is the price of oil
  • Actual drilling and production numbers for 2010 and 2011 were double his initial forecast
  • Currently, modeling peak drilling at 2,500 wells per year (We expect the industry will get close to that this year)
  • 3-10 Billion barrels of recoverable oil are the common estimates he sees
  • Production will potentially surpass 1 million b/d before 2020 at current expectations
  • Fiscal discipline is very important for communities - too much money was wasted during the boom times in other areas

An Industry representative from Chesapeake and one from Marathon provided a panel discussion for those in attendance. The title of the panel was

Conducting Business with the Oil & Gas Industry

Adam Haynes - Chesapeake Energy

  • Hiring drivers, welders, and right-of-way agents
  • Midstream is a big portion of hiring - they have to move the products
  • Housing need is critical to the company's ability to grow its business in South Texas
  • Expecting a resurgence in manufacturing that hasn't been seen in the past 100 years
  • The industry has a BIG impact on local communities. The number one complaint he received a few months ago was about grocery stores not having milk and eggs.   CHK couldn't help, they're going to stick to drilling, but HEB is doing a great job
  • Contractors need $5 million in general liability insurance

Rick O'Brien - Marathon Oil

  • "Today is the slowest day for Marathon for the rest of the year." They're only increases their presence
  • They use the internet to find contractor, so a presence online is very important
  • Marathon doesn't own its subs like a Chesapeake, so contractors come through General Contractors
  • Contractors have to accept credit cards/wire transfers and be willing to only send 10-15 invoices per year
  • Recruiting 25 local operators
  • Starting first responder training for local fire departments soon

Special thanks to Carolyn Gibson of the City of Gonzales and Jennifer Kolbe of the La Vernia Municipal Development District. The ladies organized a great event.