UTSA: Eagle Ford Shale Economic Impact - $87 Billion

September 26, 2014 Kirk Eggleston

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.

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.

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.

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.

Riches from the Eagle Ford Boom - Video

July 17, 2014 Kirk Eggleston

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.

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, at least up-front while there is less competition.

UTSA Eagle Ford Study Touts Oil & Gas Benefits

March 28, 2013 R.T. Dukes

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.

"It is our hope that this research helps state and local officials make informed decisions as the economic growth of this region continues to expand," said Bob McKinley, UTSA associate vice president for economic development.

The full report is 76 pages and can be accessed HERE.

Highlights include the following:

Eagle Ford Shale Ranks as the largest oil & gas development in the world based on capital expenses
$61 billion economic impact in the 20 county area affected by the play
116,000 jobs supported by the play with $4.69 billion paid in salaries
$1.01 billion paid to local governments in 2012
$1.24 billion paid to the state government in 2012
$72 million paid to landowners for leases in 2012
Estimated $3 billion was paid in the form of royalties to landowners
Anadarko led the number of gas wells and EOG led the number of oil wells drilled in 2012
In 2022, the economic impact is estimated at $89 billion and
127,000 jobs will be supported in the area in ten years

For our regular readers, it's no surprise. The Eagle Ford is blessing South Texas with an economic impact no one ever imagined.

Share your thoughts on the study in the comment section below.

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

March 26, 2013 R.T. Dukes

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.

Fiscal impacts to the State of Texas are significant. The Eagle Ford added more than two billion dollars in state and local revenue to government coffers in 2012. The continued robust activity in the Eagle Ford stems in large measure from the play’s ability to produce not only natural gas, but also oil and condensate.

“In 2008, we saw very little activity in the Eagle Ford shale. Today, it has become one of the most significant oil and gas plays in the country and has generated a tremendous amount of wealth for Texas,” said Thomas Tunstall, director of the UTSA Center for Business and Community Research, and the study’s principal investigator. “Over the next 10 years, the annual revenue generated and jobs created will continue the steady progress upward, helping to ensure environmental and economic goals can be realized together. The goal is to create sustainable growth for the region.”

Highlights of the UTSA study concluded that shale development:

generated $61 billion and 116,000 jobs for the 20-county region in 2012
will generate $89 billion and 127,000 jobs for the 20-county region in 2022;
added more than $1 billion in total local government revenue in 2012;
provided $1.2 billion in estimated State revenue in 2012.

UTSA scholars examined the region’s 14 oil and natural gas-producing counties (Atascosa, Bee, DeWitt, Dimmit, Frio, Gonzales, Karnes, La Salle, Live Oak, Maverick, McMullen, Webb, Wilson and Zavala) and the six surrounding counties which serve as staging areas for the oil and gas play. The latter include Bexar and Uvalde Counties as well as Victoria, Jim Wells, Nueces and San Patricio Counties. These supporting counties have seen significant employment growth. For example, Bexar County jobs supported by the shale now exceed 20,000, up from less than 5,000 in 2011.

The study reflects a major surge in Eagle Ford related activity in 2012 as previously announced investments came on line for production, regional headquarter operations, pipelines, rail, supply, services, housing and logistics infrastructure. Early movers continue to consolidate their positions for the long term, notably along the Gulf Coast with new refining and manufacturing investments. The versatility of Eagle Ford was also demonstrated in response to commodity prices, with significant shifts from gas to oil while maintaining high output growth.

About the Center for Community and Business Research at UTSA

The Center for Community and Business Research in the UTSA Institute for Economic Development conducts primary research on community and business development in South Texas and the border region. In addition to the study released today, the Center has published Economic Impact of the Eagle Ford Shale (May 2012), Strategic Housing Analysis (July 2012, in partnership with the UTSA College of Architecture and UTSA Center for Urban and Regional Planning Research), Eagle Ford Shale Impact for Counties with Active Drilling (October 2012) and its Workforce Analysis for the Eagle Ford Shale (October 2012).

"The research conducted at UTSA provides us with valuable information, findings and recommendations related to the Eagle Ford Shale and its impact on Texas' economy," said Senator Judith Zaffirini, D-Laredo. "This research is a wonderful resource not only for state policymakers and business leaders, but also for all stakeholders who are working to create sustainable communities throughout the shale region. Equally important, it underscores the critical role of the higher education community in public service and economic development."

For more information about the Center, visit www.ccbr.iedtexas.org. The full study will be available to the public at 3 p.m. on March 28th. Join the conversation on Twitter (#utsaeagleford).

About UTSA

The University of Texas at San Antonio is one of the largest of nine academic universities and six health institutions in the UT System. As a multicultural institution of access and excellence, UTSA aims to be a national research university providing access to educational excellence and preparing citizen leaders for the global environment.

UTSA serves nearly 31,000 students in more than 135 degree programs in the colleges of Architecture, Business, Education and Human Development, Engineering, Liberal and Fine Arts, Public Policy, Sciences and the Honors College, University College and Graduate School. Founded in 1969, UTSA is an intellectual and creative resource center and a socioeconomic development catalyst for Texas and beyond. Learn more at www.utsa.edu.

The article above was published through EagleFordShale.com’s press release distribution service. Learn more about Eagle Ford Advertising Here.

Dallas Fed Report "Eagle Ford Shale Brings Wealth to South Texas"

June 5, 2012 R.T. Dukes

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 the entire report at dallasfed.org