Eagle Ford Tax Revenues Boosting the Texas Rainy Day Fund

At the San Antonio oil & gas conference, Texas RRC's Elizabeth Ames Jones touted the Eagle Ford's contribution to the economy and Texas. She reported the Texas Rainy Day Fund will get a deposit of $1.1 billion dollars in November. The bulk of the money comes from oil & gas revenue. That's a good boost to state coffers.[ic-c] She also made a political plea for the federal government to stay hands off when it comes to oil & gas activity and hydraulic fracturing. 

Here's an additional article on the conference mysanantonio.com

U.S. Oil Production Growth Expectations Continue To Rise

U.S. oil production is expected to rise more than 2 million barrels per day by 2015. That's from a new report written by Bentek that was released after the National Petroleum Council's Production Report last week. The bulk of production will be added by the Bakken, Eagle Ford, and other plays in West Texas. IHS predicts that same oil growth could fuel the addition of 1.3 million jobs and add $97 billion in tax revenues. I think it's safe to say all three, production, jobs, and tax revenues, should be welcomed during this economic climate.

North America appears headed for an oil renaissance, with crude production expected to hit an all-time high by 2016 given the current pace of drilling in the U.S. and Canada, according to a study released by an energy research firm this week.

U.S. oil production in areas including West Texas' Permian Basin, South Texas' Eagle Ford shale and North Dakota's Bakken shale will record a rise of a little more than 2 million barrels per day from 2010 to 2016, according to data compiled by Bentek Energy, a Colorado firm that tracks energy infrastructure and production projects.

Read the full news release at mysanantonio.com

Gonzales County Schools Benefit from the Eagle Ford Shale

Gonzales ISD is getting ready for boon in property and sales tax revenues from the boom of Eagle Ford Shale Drilling. The state is making cuts across the board and the education system is being hit hard this time around. Gonzales County, TX, is shielded from the remains of a recession and is benefiting from the Eagle Ford oil boom. Oil and gas development brings jobs, investment, and much needed tax revenues. 

While school districts around Texas are wrestling with how to deal with a decrease in foundation funding from the state, Gonzales and neighboring districts are sitting on a gold mine which could greatly offset much of the monetary shortage: the Eagle Ford Shale.

Retired petroleum engineer David Thiede gave a presentation to Gonzales ISD trustees during Tuesday’s budget workshop session and indicated that Gonzales and several surrounding districts stand to reap immense benefits from the explosion in oil and gas exploration resulting from hydraulic fracturing technology.

“Economically, we’re sitting in the sweet spot,” Thiede told the board. He said there are currently some 150 working wells in Gonzales County, but “we could easily end up with 4-5,000 wells in this county.”

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Alice TX Oil Boom Adds Jobs and Sale Tax Revenue

Alice, TX is just the latest town in a series of many that are reporting on the oil boom in South Texas. The Eagle Ford Shale has filled hotels for what will likely be many years to come. Sales tax revenue is up almost across the board and the great thing is activity should continue to grow over the coming months. If oil prices hold, this is the beginning of long-term oil and gas development.

"Alice has its hotels booked, stores expanding and businesses hiring."

"Those are the benefits of being swept up in the economic flood that is Eagle Ford shale production, City Manager Ray De Los Santos Jr. said."

" 'It's not tourism, it's industry that's keeping those hotels filled and those restaurants full,' De Los Santos said."

"Workers spending extra cash on lodging, eating and shopping has Alice's sales tax revenues up 43 percent for the year."