Karnes City Changed By The Eagle Ford

Karnes City - City Hall Building

To say Karnes City has changed over the past few years is an understatement. The Houston Chronicle conducted an interview with a local farmer who owns the land where ConocoPhillips drilled its first Eagle Ford well.

Change started with the growth in oilfield jobs and booming royalty checks. Today, cash is being poured into the area.

"It's been good to me. I miss that pasture, but I could have ranched here for 300 years and not have the income we do now," he said. "Anyone who owns property should be benefiting."

A few takeaways:

• Karnes City was once the poorest non-border town in the state
• 1,200 permits have been issued in the county over the past four years
• 2,000 miles of pipe have been laid
• As much as $70 million/month is being paid to royalty owners in the county
• Traffic counts are up as much as 300% on local roads
• County's tax base has jumped from $562 million to $3.1 billion in 3 short years

"A kid can leave a $40,000 overtime job at the prison and make over $100,000 in the oil field. You've got kids coming home to work here who haven't lived here in a long time," he said.

Read the full article at chron.com

Texas Builders Are Moving to Rural Eagle Ford Areas

Texas builders are moving from San Antonio and Houston into more rural areas of South Texas where the housing market is much stronger. Major home developments have been built in La Vernia, Floresville, and another is on the way in Kenedy. With the 10,000 plus direct jobs and many more indirect jobs that have been created to date, there will likely be a housing boom for many years in rural areas like Carrizo Springs and Floresville. 

Now more developers and builders from San Antonio and beyond are moving into the sparsely populated Eagle Ford Shale counties to build everything from housing to pipe yards to warehouses.

Pleasanton native Garrett Ruple moved back home from Houston about two years ago when he realized how much work was available in the Eagle Ford Shale. “All of my friends from college are now in Houston, and everybody and their dog was trying to figure out a way to do projects in South Texas,” he said. “I was watching from afar.”

Read the entire news release at fuelfix.com

Kenedy TX Housing Developer Adding Homes and Apartments

A Kenedy, TX, Eagle Ford Shale housing development is on its way. A San Antonio based company is has acquired 166 acres where the new "Kenedy Station" residential and commercial development will be started later in 2011. The master plan for the community will add a combination of 500 homes and apartments to the area. Those homes should be in high demand as most oilfield workers are forced to commute from other towns or have to stay in hotels for months at a time. A 10-plex apartment complex and 5-6 homes will be constructed later in the year. The first phase of development will include up to 17 homes. Hotels and RV parks continue to boom and expectations are for more permanent housing to be constructed as oilfield workers plant roots in what is expected to be a multi-decade development.

A San Antonio-area developer has purchased 166 acres in Kenedy for a project to help fill the desperate need for housing for oil field workers in the Eagle Ford shale.

Kenedy Station, a residential and commercial development, should break ground late this year. Although it will be built in phases, plans ultimately call for 260 home sites and 240 apartment units.

Kevin Brown, Abrego Development Co. president, said he was approached more than three years ago by the Karnes County Economic and Community Development Corp. about the need for more housing in the area. And that was before the oil boom.

The project is part of a Tax Increment Reinvestment Zone. Developers pay for public infrastructure up front but are paid back over time as property values increase.

Read the full news article at chron.com