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.

Eagle Ford Growth Means Opportunity - TED Talk

December 27, 2013 R.T. Dukes

Tom Tunstall delivered an Eagle Ford presentation at TED San Antonio earlier in the fall. The Eagle Ford is a major development on a world-wide scale and is providing opportunity for many in South Texas.

Takeaways from the presentation include:

Eagle Ford is visible from space like the Great Wall of China
Development is happening is what used to be the poorest counties in Texas
$61 billion economic impact in 2012
Eagle Ford production will surpass 1 million b/d of oil in 2014
Be careful what you believe as "Truth"
Techniques for capturing shale gas and oil were unveiled by smaller independent operators
Sustainable development plans are needed to support growing communities

Small Businesses in the Eagle Ford Getting Help From Local Colleges

August 15, 2013 R.T. Dukes

Several universities in the region are stepping up to provide solutions to various challenges created by significant economic growth. UTSA has been active through its small business development center and TAMU Kingsville is adding programs to address challenges as well. If you haven't read the article, Tom Tunstall addressed community planning in the region in the article: Texas Ghost Towns & Implications in the Eagle Ford Shale

"It's like the old California gold rush," said Dr. Stephan Nix, Dean of the College of Engineering at TAMUK. "I mean, that was a great thing, but along with that came a lot of problems and a lot of issues. In many ways, this is the same."

Employers Struggle To Fill Open Jobs In South Texas

May 31, 2013 R.T. Dukes

If there is one thing we can say without question, the Eagle Ford has created a job boom across South Texas. A recent UTSA study estimates the oil & gas industry supports over 116,000 jobs across a 20 county area impacted by the play. It's great news, but it also means common positions that don't pay as much have a hard time filling openings.

If you haven't done so, join over 15,000 other job applicants and search our South Texas Oilfield Jos Board for listings across the region. Use the search function to find more than just oilfield jobs

“My guess is they are going to have to raise wages to more than the $26,700 paid currently.”

Eagle Ford Shale Task Force Report

April 9, 2013 R.T. Dukes

The Eagle Ford Task Force met throughout 2011 and 2012 to address concerns and challenges that accompany the growing economy across South Texas.

The group compiled its findings in a report published by the Texas Railroad Commission. The report was overshadowed by UTSA's Updated Eagle Ford Study not long after its release, but there is still a wealth of information to take away.Major takeaways include:

Energy companies must explore previously untapped recruitment resources to meet immediate labor needs
TX RRC wants to speed up the determination that pipelines will be of "public use" to allow for quicker decisions in development
RRC records do not include a single documented groundwater contamination case associated with hydraulic fracturing
RRC is in the process of updating rules related to injection & disposal wells, well integrity, wellhead control, waste management, and water recycling
Texas oil production may push the US ahead of Saudi Arabia and Russia in 2020
Natural gas flaring in oil fields is being scrutinized at the regulatory level
Health care and expanded educational offerings are needed to equip workers of the future

If you have an interest in any of the topics above, you can read the full report at rrc.state.tx.us