Karnes City Changed By The Eagle Ford

Karnes City - City Hall Building
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

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

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