Eagle Ford Shale Economic impact estimated as $61 Billion by UTSA study
The Eagle Ford Shale now ranks as the largest single oil and gas development in the world based on capital expenditures. Wood Mackenzie Ltd.1 recently calculated that oil and gas companies will spend $28 billion in the South Texas Eagle Ford play during 2013. In 2012 many infrastructure projects had commenced or completed construction, including multi-million dollar oil and gas operations centers, pipelines, terminals, and processing plants. The Center for Community and Business Research (CCBR) estimated that close to $19 billion was spent on capital expenditures in 2012. (Additional detail on CCBR estimates for Eagle Ford Shale investments can be found in the main report in the Drilling and Completion for the 14-county Area table.)
In May 2012, the CCBR released Economic Impact of the Eagle Ford Shale which focused on production, drilling, and related activities. In October 2012 the Eagle Ford Shale Impact for Counties with Active Drilling report provided a detailed image of challenges and opportunities emerging from drilling and production activities in South Texas including how the 14 counties’ impact translated to more than 19.2 billion in output. Also released in October 2012 was the Workforce Analysis for the Eagle Ford Shale. This report provided a detailed workforce analysis of the 20 counties and focused on occupational and workforce impacts including short term and long term effects.
This study has been adjusted to focus specifically on the impacts of 14 producing counties that are the most active in the Eagle Ford Shale development area: Atascosa, Bee, DeWitt, Dimmit, Frio Gonzales, Karnes, La Salle, Live Oak, Maverick, McMullen, Webb, Wilson, and Zavala. In addition, significant activity beyond exploration and drilling is occurring in six adjacent counties and are included in the analysis: Bexar, Jim Wells, Nueces, San Patricio, Uvalde and Victoria. The counties are highlighted in a map on next page.
The report includes a 2012 update of direct, indirect and induced economic impacts by county in the 14-county and 20-county regions of the Eagle Ford Shale. This report also serves to provide a more comprehensive analysis of the economic impact in the Eagle Ford Shale in regards to 2012 completed construction projects, crude oil transportation infrastructure, impacts on Texas Gulf Coast, impacts on Texas higher education, innovations and advancements in natural gas applications, increases in county sales taxes, and pipeline construction costs.
For the 14 producing counties, the 2012 economic impact was estimated to be over $46 billion, supporting 86.000 jobs. For the larger 20-county area, Eagle Ford Shale activity generated over $61 billion in economic impact and supported 116,000 jobs in 2012. Looking ahead to 2022, the 14-county area is expected to generate approximately $61 billion in economic impact and support over 89,000 jobs. In the 20-county area, the economic impact in 2022 is projected to be over $89 billion, supporting 127,000 jobs.
Total Impact Summary
In 2012, the 14-county Eagle Ford Shale region produced nearly $46.6 billion and supported 86,000 workers in the following
oil and gas related industries:
Oil and Gas (NAICS 211)
Drilling Oil and Gas Wells (NAICS 213111)
Support Activities for Oil and Gas Operations (NAICS 213112)
Oil and Gas Pipelines and Related Structures Construction (NAICS 237120)
Oil Refineries (NAICS 324110)
Petrochemicals (NAICS 32511)
The following table summarizes the 2012 impacts in the core 14-county area. Key highlights of this table are:
• Nearly $46.6 billion in total economic output (revenues) impact
• Approximately 86,000 full-time jobs in the 14-county area
• Roughly $3.3 billion in salaries and benefits paid to workers
• Over $22 billion in gross regional product (value added) impacts
• Over $800 million in local government revenues
• State revenues including severance taxes are estimated at around $374 million
Estimated Impact for 20-County Area (2012)
Estimated Impacts for 14-county Area (2012)
Economic Impacts
Direct Indirect Induced Total
Output $40,516,211,976 $4,065,486,038 $1,973,558,793 $46,555,256,807
Employment Full-Time 42,263 27,849 16,219 86,331
Payroll $1,930,694,959 $876,810,777 $445,348,821 $3,252,854,557
Fiscal Impacts
Direct Indirect Induced Total
Gross Regional
Product
$19,452,384,739
$2,248,910,739
$1,198,314,781
$22,899,610,259
Estimated Local Government Revenues $828,280,807
Estimated State Revenue, incl. severance taxes $1,055,192,713
>> Read the full study of the Eagle Ford Shale economic impact.
