Strong Texas Energy Sector Brings Growth To The Coastal Bend
In this week’s article, I want to continue to discuss the economic development that we are experiencing in South Texas. Many cities in and around Nueces County have seen a drastic increase in oil and natural gas exploration and production as a result of the Eagle Ford Shale. With the growth of this industry, we are experiencing an increase in economic activity which has been responsible for the creation of many good paying jobs in South Texas.
The Eagle Ford Shale has seen an outstanding increase in production and has even exceeded that of other traditional shale plays in the past. The Eagle Ford Shale is a hydrocarbon producing formation that spans over 400 miles long and 50 miles wide. It stretches from the Mexico border all the way to East Texas. South Texas, in particular, has a 70% carbonate percentage which is much higher than other areas of the state. This is particularly good news for our area because the higher the percentage is, the more accessible the carbonate material is.
In 2008, the first wells were drilled in the Eagle Ford Shale and the performance of them was simply astounding. The discovery well was drilled at over 11,000 feet in depth and 3,200 feet laterally. This resulted in a well that flowed at around 7,200,000 cubic feet of gas per day. This proved to be a strong indicator that a booming energy industry was about to be established. In 2012, the number of active gas wells had grown to over 1,200.
Since 2008, the overall production of natural gas has seen a steady increase every year. In 2009, the statewide production of natural gas averaged around 52 million cubic feet per day. In the recent months from January 2013 through October 2013, Texas had an average daily natural gas production of around 3.2 billion. In addition, the Eagle Ford Shale during that same time frame produced around 650,000 barrels of oil per day.
In 2013, the University of Texas – San Antonio conducted a survey to examine the economic impact that the Eagle Ford Shale would create in the State of Texas. The study found that the oil and gas exploration and production would generate more than $61 billion in economic impact across the 20 county region in 2012 alone. This is up from the $25 billion from the prior year and it was responsible for the creation of over 117,000 jobs. The study also projects that by 2022, the Eagle Ford Shale would support 127,000 jobs and have an economic impact for Texas of $89 billion.
In Texas, the oil and gas industry is regulated by the Texas Railroad Commission. Recently, the commission created the Eagle Ford Shale Task Force and in its recent report, it found that Texas is one of the leading states in the nation in oil and natural gas production. Additionally, they project that the Eagle Ford Shale has the potential to be the most active play in all of North America. Currently, there are approximately 235 active rigs running across the state and they project that this will continue for decades to come.
If you would like to learn go to Eagle Ford Shale.
If you have questions regarding the giving opportunities mentioned in this article, please do not hesitate to call my Capitol or District Office. As always, my offices are available at any time to assist with questions, concerns or comments (Capitol Office, 512-463-0672; District Office, 361-949-4603.
– State Representative Todd Hunter, District 32
Rep. Hunter represents Nueces (Part) County. He can be contacted at email@example.com or at 512-463-0672.