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.
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