Skip to comments.Eagle Ford Shale’s has had profound impact on Texas
Posted on 05/25/2012 12:04:20 PM PDT by thackney
The Eagle Ford shale drilling boom has boosted wages and job growth, and the increased drilling in 23 South Texas counties will likely have a continued impact on the state, according to a new report by the Federal Reserve Bank of Dallas.
According to the report released this week, the drilling boom has increased wages by more than 14 percent, job growth rose by nearly 6 percent and retail sales jumped 9.3 percent in 23 South Texas counties.
Live Oak and McMullen counties, which sit directly above natural gas liquids and oil deposits, benefited the most from the drilling boom, according to the study.
Live Oak saw wages rise 35.8 percent, from $585 to $823 from the first quarter of 2010 to the third quarter of 2011. McMullen County saw a similar jump as wages rose from $635 to $890, a rise of 25 percent, during the same period.
Nationally, wages rose 6.3 percent, from $870 to $953.
Drilling operations in South Texas also has meant strong job growth. From the first quarter of 2010 to the third quarter of 2011, jobs grew 5.9 percent, reaching 2.9 percent above the previous high in those 23 counties.
While recent activity is impressive, more growth may lie ahead to meet demand, the report found. The scale of development has surpassed the capacity of local industry. As the Eagle Ford matures and the local service industry expands, many outside workers may become local residents and employees.
The report found the impact has an direct impact far away from the oil fields.
Dallas, Houston and San Antonio are seeing benefits from the $14.6 billion spent in 2011 on drilling expenditures. The report said the bulk of projects costs are from geologists, geophysicists and other personnel who work at company headquarters.
Natural gas, petrochemical and oil facilities in those cities are also seeing a benefit from the drilling boom in South Texas.
Energy companies are committing billions of dollars to expand and build new infrastructure for delivering and processing the natural gas, crude oil and condensates.
The report said thats a clear indication that drilling isnt likely to slow unless oil prices drop.
As long as oil prices stay above $70, drilling activity probably will remain strong; at less than $70, drilling activity likely would begin falling off, the report found.
My law firm has seen an increase in the scalawag factor: lots of cases of underhanded dealings by family members over inherited property nobody cared about until it was discovered to be in the Shale, etc.
The smell of potential money generally brings out many interesting bedfellows and family members you may not realize you even had. Too bad the same thing doesn’t happen when someone unexpectedly falls on bad times.
Maybe that explains why it is taking so long to probate the Texas portion of my Dad’s estate.
If only the oil industry would put these facts in front of people via their advertising instead of the generic "good jobs, more tax revenue" etc. etc. Folks that see our public land use wasted might get upset - they can't know what they don't know...not many of the MSM or even half of all Rush listeners read Thackney's posts.
Could be - a couple of mine are probate actions, and some of the county judges in the shale counties are non-attorney judges who are now out of their depth and never anticipated having this much judicial work to do.
My Gosh... Does Barry know about this?? It needs to be stopped. It isn't GREEN ENERGY!! /s
Too bad this one is already taken. I think anything with Iguanas is cool.
It is even green, what more do you want?
Our ranch sits right at the edge of the Eagle Ford shale play. Drill baby drill!!
Which edge, oil or gas side?
Which edge, oil or gas side?
On the edge of the wet gas condensate in Live Oak County. 10 miles south of George West on 281. Have heard it could be years before they have the tech to drill as deep as they would have to go to recover there though...
We haven’t been graphed in years but other ranches to the west and east have had some production in the last 2 years.
Last year I was in the area doing some related expansion work in Three Rivers Refinery.
Are there many people from other states moving to Texas relating to this oil boom?
they have been moving here since the Barnett Shale boom started 10 years ago. Now we have Eagle and Haynesville, plus a return of heavy work in Midland. Rigs, trucks, water, sound equipment and thousands of office jobs to support them...Tx is boom town.