South Texas Enjoys Major Boom from Oil Frackin

[majormadmax]

Hopefully this will not only help strengthen our economy, but also get gas prices down to where I can afford to drive the Jeep on a regular basis!

Excerpt from South Texas Enjoys Major Boom from Oil Frackin:

The economic transformation is the result of a new drilling method, hydraulic fracturing, combined with horizontal drilling, that allows companies to extract oil and gas from impermeable layers of shale. Major industry players have joined the Eagle Ford project, including Anadarko, Range Resources and Shell. Chesapeake Energy of Oklahoma City signed a multi-billion dollar deal with the Chinese state-owned oil company to raise cash to drill in the shale.

No solid estimate of likely production has been made, but the American Petroleum Institute said the field should yield billions of barrels of oil. The project already supports 12,600 fulltime jobs, and by 2020 could account for $11.6 billion and nearly 68,000 jobs in a 24-county area, according to study in February by the University of Texas' Center for Community and Business Research.

Cheers! M2

 

[jr urbina]

Great news!

 

[majormadmax]

It gets even better, at least for those of us in and near San Antonio!

The Executive Summer from the UT Center for Community and Business Research report (highlighting mine):

Since the 2008 discovery of Hawkville Field, the Eagle Ford Shale has experienced a tremendous amount of activity. In less than three years, the shale play is already accounting for roughly six percent of the Gross Regional Product for the 24 county area. It creates close to $1.3 billion of gross state product impact, supports 12,601 full-time jobs, and adds $2.9 billion in total economic output (or revenues).This in turn generates close to $60.9 million in State’s revenues and $47.6 million in local government revenues. Additionally, counties like Bexar benefits with close to $58.0 million in gross state product, close to $103.8 million in economic output, and 639 full-time jobs as a result of the Eagle Ford shale activities in the surrounding counties. Jim Wells County benefits importantly with $6.5 million in gross state product, close to $15.9 million in economic output, and 91 full-time jobs. In the report, other selected surrounding counties, like Uvalde and Victoria, also show positive impacts from the shale activities.

Under moderate assumptions, by 2020 (in 2010 dollars), the Eagle Ford Shale is expected to account for close to $11.6 billion in gross state product, $21.6 billion in total economic output (or revenues) impact, and support close to 67,971 full-time jobs in the area. This will add close to $1.2 billion in State’s revenues and more than $450.6 million in local government revenues. Also, Bexar County is going to benefit with close to $702.9 million in economic output, around $394.5 million in gross state product, and 3,924 full-time jobs from the activities of the shale. Jim Wells County is estimated to benefit with $97.5 million in gross state product, close to $239.3 million in output, and close to 1,334 full-time jobs.

Analysts, investors and industry experts agree that due to a high reservoir quality, the Eagle Ford Shale will likely become a premiere oil and gas play in 2011. High yield condensate and oil production together with a favorable business climate are very attractive to individual operators, and they are likely to play a key role in spurring economic development and contributing to the economic prosperity of the region. For the future, both oil and condensate will drive production in the area as producers of oil shale perfect and develop their technologies.

Cheers! M2

 

[Mexican_Hippie]

That's really great news! Now we need to add a couple more refineries so we can process it as well.

I feel you on the Jeep. My wife's Suburban gets better gas mileage.

 

[blackwater]

That's really great news! Now we need to add a couple more refineries so we can process it as well.

I feel you on the Jeep. My wife's Suburban gets better gas mileage.

Do you know how much it costs to build a refinery???

 

[blackwater]

And start getting used to stories like this...

CBS 7 - Your Eye on West Texas

 

[Jakashh]

And start getting used to stories like this...

CBS 7 - Your Eye on West Texas

Eh, shit happens. There are risks in every career involving manual labor.

 

[blackwater]

Eh, shit happens. There are risks in every career involving manual labor.

Yeah but more often in the Oilfield and thats just from today... not to mention all of the injuries that occur...

 

[Mexican_Hippie]

Do you know how much it costs to build a refinery???

Considering the lack of refineries in the US (ie lack of competition), I'd think the ROI would be acceptable. I can ask around to verify, but I believe the biggest barriers to entry on refineries are government regulations. Why do you care how much it costs?

Yeah but more often in the Oilfield and thats just from today... not to mention all of the injuries that occur...

I think adults working on oil rigs understand the risks. They are there because they thought it was the right opportunity for them and accepted those risks. We all weigh those decisions for ourselves. Personal responsibility is just part of being an adult...unless you live in a BLUE state.

Your avatar and your posts seem in conflict. Are your responses intended to be sarcastic?

 

[majormadmax]

After 25 years in the military, I am well aware of operational risks...

And I would bet it is still safer than driving around San Antonio!

Cheers! M2

 

[blackwater]

Considering the lack of refineries in the US (ie lack of competition), I'd think the ROI would be acceptable. I can ask around to verify, but I believe the biggest barriers to entry on refineries are government regulations. Why do you care how much it costs??

Well I know out here in west texas there are flares that run 24/7 365 days a year because it is cheaper to burn the gas than it is to build a refinery. The cost let me just put it this way takes way too long to build and way too much money but thats just IMO

[/QUOTE]

I think adults working on oil rigs understand the risks. They are there because they thought it was the right opportunity for them and accepted those risks. We all weigh those decisions for ourselves. Personal responsibility is just part of being an adult...unless you live in a BLUE state.

Your avatar and your posts seem in conflict. Are your responses intended to be sarcastic?[/QUOTE]

Get me right I am all for oil and gas exploration and production, I'm just saying that accidents happen almost daily in the oil and gas industry especially production, yes somewhat sarcastic but with truth as well...

 

[Mexican_Hippie]

After asking, looks like a $3-5 billion dollar investment with low margins. Not sure I'd put my money there either unless it was part of a broader plan that made sense.

Maybe if we incentiv-ized savings instead of consumption with real market interest rates (ie get rid of the FED) then there'd be more likelihood of investment.

 

[jocat54]

I worked the oilfields (strictly offshore) for a lot of years and it surprises me that there are not more injuries, it is a dangerous place to work and you do it sometimes without any sleep. But it is a choice you make, and I made alot of money doing it (to bad I don't have any of it now.) I don't think the pay is as good as it was back then--just what I have heard.