The Eagle Ford shale generated more than $61 billion in revenue for South Texas last year and will continue to sustain the local economy into the foreseeable future, according to a new report.
The area also supported 116,000 fulltime jobs last year, according to a recent study released by the University of Texas at San Antonio’s Center for Community and Business Research. Jobs include positions in drilling, support operations, pipeline construction, refineries and petrochemicals.
“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,” the center’s research director Thomas Tunstall said in a public statement.
“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.”
The study adds that oil and gas development in the Eagle Ford will generate $89 billion and 127,000 jobs for the region in 2022. Last year alone, the play added more than $1 billion in local government revenue and about $1.2 billion in estimated state revenue, the report says.
“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,” Sen. Judith Jaffirini (Democrat-Laredo) said in a public statement.
“Equally important, it underscores the critical role of the higher education community in public service and economic development.”
Researchers at the university compiled the study after examining the Eagle Ford’s 14 oil and natural gas producing counties, as well as the six surrounding counties, such as San Antonio’s Bexar County.
The amount of shale-supported jobs in that county is today greater than 20,000, a significant rise from the 5,000 jobs in 2011, the report notes.
the report notes. Of course, where there are earnings, there is also spending. The report cites a Wood Mackenzie Ltd. statistic indicating oil and gas companies will spend $28 billion in the play this year.
And according to the Center for Community and Business Research, nearly $19 billion was spent on capital expenditures last year.
Recommended Reading
Midstream M&A Adjusts After E&Ps’ Rampant Permian Consolidation
2024-10-18 - Scott Brown, CEO of the Midland Basin’s Canes Midstream, said he believes the Permian Basin still has plenty of runway for growth and development.
Post Oak-backed Quantent Closes Haynesville Deal in North Louisiana
2024-09-09 - Quantent Energy Partners’ initial Haynesville Shale acquisition comes as Post Oak Energy Capital closes an equity commitment for the E&P.
Analyst: Is Jerry Jones Making a Run to Take Comstock Private?
2024-09-20 - After buying more than 13.4 million Comstock shares in August, analysts wonder if Dallas Cowboys owner Jerry Jones might split the tackles and run downhill toward a go-private buyout of the Haynesville Shale gas producer.
Aethon, Murphy Refinance Debt as Fed Slashes Interest Rates
2024-09-20 - The E&Ps expect to issue new notes toward redeeming a combined $1.6 billion of existing debt, while the debt-pricing guide—the Fed funds rate—was cut on Sept. 18 from 5.5% to 5%.
Dividends Declared Sept.16 through Sept. 26
2024-09-27 - Here is a compilation of dividends declared from select upstream, midstream and service and supply companies.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.