Of the Eagle Ford Shale - Economic Impact - MARCH 2013

Page created by Katie Allen

Cars & Machinery

English

Like
Share
Embed
Fullscreen
Slides
Download HTML
Download PDF
Abuse

←

→

Page content transcription

If your browser does not render page correctly, please read the page content below

Of the Eagle Ford Shale - Economic Impact - MARCH 2013

MARCH 2013
 of the Eagle Ford Shale
Economic Impact
 University of Texas at San Antonio Economic Impact of the Eagle Ford Shale March 2013

File Photo

 Economic Impact of the Eagle Ford Shale – March 2013

Thomas Tunstall, Ph.D., Javier Oyakawa, M.A., M.Sc., Sheryllynn Roberts, Ph.D., Hisham Eid, Ricardo Abalos, Ting Wang,
Emiliano Calderon and Karla Melara.

The authors would like to thank research assistants Karina Juarez, Shayne Calhoun, Sylvana Bortol, Rayza Perales, Storm
Wald, Emmanuel Tomes, Feihua Teng, Paola Conti, Angélique De Oliveira and review assistance from Chris Clark. Special
assistance was also provided by Carter Keairns and Alan Dutton. Finally, a special thanks to Adam Haynes with Chesapeake
Energy, and the entire ANGA organization, for their support and assistance in collecting data. Cover photo illustration and
report layout by Fred Valenzuela.

This study was performed by the Center for Community and Business Research at The University of Texas at San Antonio’s
Institute for Economic Development. The project was supported with funding from the America’s Natural Gas Alliance. Any
findings, conclusions or opinions are those of the authors and not necessarily those reflected by The University of Texas at San
Antonio or the America’s Natural Gas Alliance.

2 UTSA Institute for Economic Development

Table of Contents

Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Sales Tax Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 County Transportation and Infrastructure . . . . . . . . . . . . . . . . . . . . . 37
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Road Damage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
 Eagle Ford Shale Counties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Estimated Costs for Repair . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Current Activity 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Donations from Oil and Gas Companies . . . . . . . . . . . . . . . . . . . . . . 37
 Total Impact Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Task Force and Committees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
 2012 Total Impacts- Eagle Ford Shale Counties (14-county Area) . . . . . 9 Legislative Efforts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
 Impacts outside of the Eagle Ford Shale Drilling area . . . . . . . . . . . 11 County Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
 Impacts on Bexar County 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Education and the Eagle Ford . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
 Impacts on Jim Wells County 2012 . . . . . . . . . . . . . . . . . . . . . . . . . 11 Alamo Community Colleges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
 Impacts on Nueces County 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Coastal Bend College . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
 Impacts on San Patricio County 2012 . . . . . . . . . . . . . . . . . . . . . . . 12 Laredo Community College . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
 Impacts on Uvalde County 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Southwest Texas Junior College & Victoria College . . . . . . . . . . . . . 41
 Impacts on Victoria County 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Texas A&M International University . . . . . . . . . . . . . . . . . . . . . . . . . 42
Future Activity/Projections (2022) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Texas A&M University-Kingsville . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Future Impacts of Additional Counties . . . . . . . . . . . . . . . . . . . . . . . . 19 The University of Texas at San Antonio . . . . . . . . . . . . . . . . . . . . . . . 42
 Estimated Impact for Bexar (2022) . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Railroads and Eagle Ford . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
 Estimated Impact for Jim Wells County (2022) . . . . . . . . . . . . . . . 19 San Antonio, Bexar County . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
 Estimated Impact for Nueces County (2022) . . . . . . . . . . . . . . . . 20 Saspamco, Wilson County . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
 Estimated Impact for San Patricio County (2022) . . . . . . . . . . . . . 20 Hondo Railway, Medina County . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
 Estimated Impact for Uvalde County (2022) . . . . . . . . . . . . . . . . . . 21 Texas Gonzales & Northern Company, Gonzales County . . . . . . . 49
 Estimated Impact for Victoria County (2022) . . . . . . . . . . . . . . . . 21 Gardendale, La Salle County . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
 Forecast Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Live Oak Railroad, Live Oak County . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Upstream Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Port of Corpus Christi, Nueces County . . . . . . . . . . . . . . . . . . . . . . . 51
 Estimated Completed Well Count for 2012 . . . . . . . . . . . . . . . . . . . 24 2013 Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
 Drilling and Completion Impacts . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Eagle Ford and the Texas Gulf Coast . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
 Extraction Impacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Fractionation Capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Midstream Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Ethane and Propane . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
 Midstream Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Rubber and Fertilizer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
 Pipeline onstruction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 The Port of Corpus Christi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Downstream Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Crude Oil and Eagle Ford . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
 Estimated Refinery Operations Impact for Eagle Ford Shale Eagle Ford, Natural Gas and Technology Innovation . . . . . . . . . . . . . 69
 at the 14-county Level (2012) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30 LPG & LNG Field Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Land Leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Natural Gas & Power Generation . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Increased Use of Natural Gas Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . 71
Right-of-Way Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Mass Transportation with CNG Vehicles in Texas . . . . . . . . . . . . . . 73
Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 LNG (Liquefied Natural Gas) Export . . . . . . . . . . . . . . . . . . . . . . . . . 72
Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Final Comments on Longevity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
 Amounts Subject to Sales Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 About the Center for Community & Business Research . . . . . . . . . . . 75

Center for Community and Business Reseach 3

4 UTSA Institute for Economic Development

Executive Summary

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, McMul-
len, 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 high-
lighted 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-coun-
ty 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.

The full report and appendix can be accessed online at:

http://ccbr.iedtexas.org/efs-economic-impact-2013
http://ccbr.iedtexas.org/efs-economic-impact-appendix-2013

1
Dittrick, Paula. “WoodMac: Eagle Ford 2013 spending to reach $28 billion.” Oil & Gas Journal. December 6, 2012.

Center for Community and Business Reseach 5

6 UTSA Institute for Economic Development

Eagle Ford Shale Counties

 Active Included
 Non Active
 Active Not Included

Impacts are also provided for the stages of production: upstream, midstream, and downstream.

 • Upstream impacts are those related to the drilling, completion, and extraction of oil, gas and condensate.
 • Midstream impacts are those related to the transportation of extracted products to the location of the refinery
 operation, and includes pipeline construction.
 • Downstream impacts are those related to the refining and processing of the transported products.

The study has been updated to include the economic impacts in six related counties acting as Eagle Ford Shale staging and
administrative centers: Bexar, Jim Wells, Uvalde, Victoria, San Patricio, and Nueces

Center for Community and Business Reseach 7

Similar studies often utilize survey data to build new linkages between economic sectors in order to accommodate the fact
that the IMPLAN database predates much of the shale gas drilling. For consistency and comparison purposes, both our prior
2011 analysis and updated 2012 analysis utilize the existing oil and gas sector linkages in the IMPLAN economic database,
producing results which may be conservative.

To quantify the impact of the Eagle Ford Shale, we focused on six economic sectors where the oil and gas industries operate: 2

1. Oil and Gas Extraction (NAICS 211)
2. Drilling Oil and Gas Wells (NAICS 213111)
3. Support Activities for Oil and Gas Operations (NAICS 213112)
4. Oil and Gas Pipeline and Related Structures Construction (NAICS 237120)
5. Oil Refineries (NAICS 324110)
6. Petrochemical Manufacturing (NAICS 325211)

Additionally, we included the economic impacts of royalty, lease payments to households, and right of way agreements, as
households in turn spend their money creating induced effects and supporting more jobs.3

To calculate the economic impact of the Eagle Ford Shale in 2012, we estimated the production of gas and oil for that year.
We collected Eagle Ford related production information from the Railroad Commission of Texas up to November 2012, and
used that information to project the final total for the year.4 Using price information from the Energy Information Adminis-
tration (EIA) we obtained estimation, in dollars, of revenues from oil and gas extraction for the year. This dollar-production
amount was used with the software IMPLAN to obtain direct, indirect, and induced impacts in the area of analysis. Oil and
Gas Extraction is the only sector related to this production dollar value. Based on information about drilling and completion
costs per well and by estimating the number of wells drilled and completed in 2012,5 we were able to obtain a total amount of
drilling and completion costs. These costs were allocated to two different sectors in IMPLAN: drilling oil and gas wells (NA-
ICS 213111) and support activities for oil and gas operations (NAICS 213112).

2
NAICS codes adapted from The Economic Impact of the Oil and Gas Industry in Pennsylvania, prepared by Pennsylvania Economy League of
Southwestern Pennsylvania, LLC, November 2008, with the addition of pipeline construction activities, lease and royalty payments.
3
Methodology adapted from Timothy J. Considine in The Economic Impacts of the Marcellus Shale: Implications for New York, Pennsylvania, and
West Virginia, July 14, 2010; and Anthony M. Zammerilli in Projecting the Economic Impact of Marcellus Shale Gas Development in West Virginia:
A Preliminary Analysis Using Publicly Available Data, March 31, 2010; a report by the National Energy Technology Laboratory
4
The conversion from output volumes of oil and gas to dollars is explained in Appendix A.
5
According to the HPDI, 1,649 wells were completed in 2011. Only 616 of these were producing in the same year, largely because the development
of multi-well pads has become prevalent in the area. This has resulted in greater efficiency, allowing for the use of common gathering and completion
features, but has led to the postponement of the production phase for all wells in a pad until the last well in the pad has been completed.

8 UTSA Institute for Economic Development

Current Activity 2012

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 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 $19,452,384,739 $2,248,910,739 $1,198,314,781 $22,899,610,259
 Product
 Estimated Local Government Revenues $828,280,807

 Estimated State Revenue, incl. severance taxes $1,055,192,713
 
  
 Estimated Impact for 20-County Area (2012)

Center for Community and Business Reseach 9

2012 Total Impacts- Eagle Ford Shale Counties (20-county Area)

In 2012, impacts were also assessed for a 20-county region, which includes the 14 counties most actively producing, as well as
6 counties that are experiencing substantial indirect and induced activity: Bexar, Jim Wells, Nueces, San Patricio, Uvalde, and
Victoria..

The total economic impact of the Eagle Ford Shale in 2012 in the 20-county study region was over $61 billion dollars. Other
impact highlights include

 • 116,508 full time jobs supported
 • $4.69 billion in payroll
 • $28.43 billion in Gross Regional Product (value added)
 • $1.01 billion in total local revenues
 • $1.24 billion estimated state revenue
 Economic Impacts
 Economic Impacts
 Direct Indirect Induced Total
 Output
 Direct Indirect Induced Total
 $47,793,429,309 $10,021,505,953 $3,347,339,871 $61,162,275,133
 Output $47,793,429,309 $10,021,505,953 $3,347,339,871 $61,162,275,133
 Employment Full-Time 46,289 44,247 25,972 116,508
 Employment Full-Time 46,289 44,247 25,972 116,508
 Payroll $2,204,216,795 $1,674,168,841 $812,303,126 $4,690,688,763
 Payroll $2,204,216,795 $1,674,168,841 $812,303,126 $4,690,688,763
 
   
   Fiscal Impacts
 
   
   Fiscal Impacts
 
   
   Direct Indirect Induced Total
 
  Gross
 
   Direct Indirect Induced Total
 Regional Product $20,952,315,627 $5,441,264,283 $2,043,563,445 $28,437,143,355
 Gross Regional Product $20,952,315,627 $5,441,264,283 $2,043,563,445 $28,437,143,355
 Total local revenues $0 $0 $0 $1,016,686,837
 Total local revenues $0 $0 $0 $1,016,686,837
 Estimated State Revenue $0 $0 $0 $1,247,870,956
 Estimated State Revenue $0 $0 $0 $1,247,870,956
 
  
 Estimated Impact for Bexar (2012)
 Estimated Impact for Bexar (2012)
 
   
   Economic Impacts
 
   
   Economic Impacts
 
   
   Direct Indirect Induced Total
 
  Output
 
   Direct Indirect Induced Total
 $184,490,994 $3,898,442,094 $1,029,304,249 $5,112,237,337
 Output $184,490,994 $3,898,442,094 $1,029,304,249 $5,112,237,337
 Employment Full-Time 1,485 11,584 7,254 20,323
 Employment Full-Time 1,485 11,584 7,254 20,323
 Payroll $56,451,461 $586,075,149 $278,179,407 $920,706,017
 Payroll $56,451,461 $586,075,149 $278,179,407 $920,706,017
 Gross County Product $102,262,864 $2,404,646,261 $638,405,616 $3,145,314,740
 Gross County Product $102,262,864 $2,404,646,261 $638,405,616 $3,145,314,740
 
  
 Estimated Impact for Jim Wells County (2012)
 Estimated Impact for Jim Wells County (2012)
 Economic Impacts
 Economic Impacts
 Direct Indirect Induced Total
 Output
 Direct Indirect Induced Total
 $0 $61,217,057 $6,433,357 $67,650,414
 Output $0 $61,217,057 $6,433,357 $67,650,414
 Employment Full-Time 0 181 49 230
 Employment Full-Time 0 181 49 230
 Payroll $0 $8,876,863 $1,514,066 $10,390,929
 Payroll $0 $8,876,863 $1,514,066 $10,390,929
 Gross County Product $0 $29,969,215 $3,809,205 $33,778,420
 Gross County Product $0 $29,969,215 $3,809,205 $33,778,420
 
  
 Estimated Impact for Uvalde County (2012)
 Estimated Impact for Uvalde County (2012)
 Economic Impacts
 Economic Impacts
 Direct Indirect Induced Total
 Output
 Direct Indirect Induced Total
 $0 $31,925,635 $5,064,638 $36,990,273
 Output $0 $31,925,635 $5,064,638 $36,990,273
 Employment Full-Time 0 177 40 217
 Employment Full-Time 0 177 40 217
 Payroll $0 $5,384,502 $1,052,638 $6,437,140
 Payroll $0 $5,384,502 $1,052,638 $6,437,140
 Gross County Product $0 $17,447,248 $2,943,725 $20,390,973
 Gross County Product
10 
   $0 $17,447,248 UTSA Institute for Economic
 $2,943,725 Development
 $20,390,973

Impacts outside of the Eagle Ford Shale Drilling area

In addition to the impacts on the 14-county Eagle Ford Shale drilling region, several counties outside of the area of drilling
sites have also been significantly impacted by activity in Eagle Ford. These are discussed below.
 Economic Impacts
Impacts on Bexar County 2012 Direct Indirect Induced Total
 Output $47,793,429,309 $10,021,505,953 $3,347,339,871 $61,162,275,133
Bexar County is well positioned as the largest metropolitan area adjacent to the Eagle Ford Shale. The county has a sizable
 Employment Full-Time 46,289 44,247 25,972 116,508
workforce Payroll
 and a community college system able to design programs applicable to the specific job skills needed within the
 $2,204,216,795 $1,674,168,841 $812,303,126 $4,690,688,763
Eagle Ford Shale. As such, Bexar is a good location for large oilfield service companies to establish their operations. Close to
$161 million
 
   
   in construction activity for oilfield service corporations
 Fiscalsuch as Halliburton and Platinum Energy Services and
 Impacts
close to $24
 
   
   million in pipeline construction produced
 Direct direct impacts in Bexar.
 Indirect Drilling, completion,
 Induced and extraction
 Total activities
in the Eagle
 Gross Ford area produce
 Regional indirect impacts. Valero’s refineries in Corpus Christi also have indirect impacts in the coun-
 Product $20,952,315,627 $5,441,264,283 $2,043,563,445 $28,437,143,355
ty. Finally, expenditures from all these employees generate induced impacts. Bexar County has experienced a total output of
 Total local revenues $0 $0 $0 $1,016,686,837
$5.11 billion and a gross
 Estimated State Revenue
 county product just over $3.14 billion.
 Economic This amount
 Impacts will support 20,000 full-time jobs with a total
 $0 $0 $0 $1,247,870,956
payroll of over $920 million. Direct Indirect Induced Total
 
  
 Output $47,793,429,309 $10,021,505,953 $3,347,339,871 $61,162,275,133
 Employment Full-Time 46,289 44,247 25,972 116,508
 Estimated Impact for Bexar (2012)
 Payroll $2,204,216,795
 
   
   Economic$1,674,168,841
 Impacts $812,303,126 $4,690,688,763
 
   
   Direct Indirect Induced Total
 
   
   Fiscal Impacts
 Output $184,490,994 $3,898,442,094 $1,029,304,249 $5,112,237,337
 
   
   Direct Indirect Induced Total
 Employment Full-Time 1,485 11,584 7,254 20,323
 Gross Regional Product $20,952,315,627 $5,441,264,283 $2,043,563,445 $28,437,143,355
 Payroll $56,451,461 $586,075,149 $278,179,407 $920,706,017
 Total local revenues $0 $0 $0 $1,016,686,837
 Gross County Product $102,262,864 $2,404,646,261 $638,405,616 $3,145,314,740
 Estimated State Revenue $0 $0 $0 $1,247,870,956
 
  
Impacts on Jim Wells County 2012
 Estimated Impact for Jim Wells County (2012)
 Estimated Impact for Bexar (2012)
 Economic Impacts
 Economic
 
   
   is preparing to reclaim its status as the “Hub
Alice, Texas City Impacts
 of South Texas”. Induced
 In the 1920’s, due to Total
 its convenient location
 Direct Indirect
 Direct Indirect Induced
 
   
   in the middle of Corpus Christi, Laredo, and San Antonio, Alice benefitted
triangulated greatly fromTotal
 the oil and gas boom
 Output $0 $61,217,057 $6,433,357 $67,650,414
 Output
of the 1900s. Due to the emergence of$184,490,994
 the Eagle Ford Shale,$3,898,442,094
 Alice is again well$1,029,304,249
 positioned $5,112,237,337
 to benefit greatly from oil and gas
 Employment Full-Time 0 181 49 230
 Employment
extraction activities. InFull-Time
 September 2012, Alice saw
 1,485 a $6 million surplus, allowing
 11,584 the city to
 7,254put aside $4 million
 20,323in order to
 Payroll $0 $8,876,863 $1,514,066 $10,390,929
 Payroll
build a new civic center.Product
 Due to increased oil and gas extraction
 $56,451,461 activity, Jim Wells
 $586,075,149 County has seen$920,706,017
 $278,179,407 a total output of $67.65
 Gross County $0 $29,969,215 $3,809,205 $33,778,420
 Gross County Product
million and a gross county product of$102,262,864
 $33.77 million. Activities related to Eagle
 $2,404,646,261 Ford have brought
 $638,405,616 230 full-time employ-
 $3,145,314,740
 
  
ment positions
 
   with a total payroll of $10.39 million to Jim Wells County. 6

 Estimated Impact for Uvalde County (2012)
 Estimated Impact for Jim Wells County (2012)
 Economic Impacts
 Economic Impacts
 Direct Indirect Induced Total
 Output
 Direct Indirect Induced Total
 $0 $31,925,635 $5,064,638 $36,990,273
 Output $0 $61,217,057 $6,433,357 $67,650,414
 Employment Full-Time 0 177 40 217
 Employment Full-Time 0 181 49 230
 Payroll $0 $5,384,502 $1,052,638 $6,437,140
 Payroll $0 $8,876,863 $1,514,066 $10,390,929
 Gross County Product $0 $17,447,248 $2,943,725 $20,390,973
 Gross County Product $0 $29,969,215 $3,809,205 $33,778,420
 
  
6
 As mentioned
 
   in the February 2011 study for the Eagle Ford Shale, the IMPLAN database relies on oil and gas sector linkages that may not reflect
 Estimated
current relationships among different industrial Impactsimilar
 sectors. Something for Uvalde County
 occurs with linkages(2012)
 among counties – some of these linkages may or may
not reflect current developments in the area. In the case of the indirect impacts
 Economic Impacts on Jim Wells County, there appears to be a very important underestima-
 
  
tion of the impacts. Based on some regressions measuring the impacts of sales from the 14-county area on Jim Wells County sales, and other regressions
 Direct Indirect Induced Total
measuring the impacts on commuter workers from Jim Wells, it is clear that these impacts underestimate the observable effects of Eagle Ford in this
county. WeOutputestimate that the impacts could be between $0 $31,925,635
 three to six times higher $5,064,638
 than those presented here. $36,990,273
 Employment Full-Time 0 177 40 217
Center for Payroll Community and Business Reseach $0 $5,384,502 $1,052,638 $6,437,140 11
 Gross County Product

Impacts on Nueces County 2012

For 2012, Nueces County generated an estimated $8.5 billion in total output and a gross county product of $2.0 billion.
Refining activity from Valero, Flint Hills, and CITGO,
 Estimated Impactusing oil from the
 for Victoria Eagle(2012)
 County Ford shale support direct jobs in the County.
Also, pipeline construction in the area is supporting direct jobs in Nueces.
 Economic Impacts
 Direct Indirect Induced Total
The largeOutput
 output can be credited to the $18,185,334
 increase in construction $130,715,330
 and upgrades taking place in the oil and
 $29,522,352 gas sector of Nuec-
 $178,423,015
es County’s economy. Baker
 Employment Hughes, a major player
 Full-Time 155 in the Eagle Ford Shale,
 450will consolidate
 218several of their field
 823offices by
constructing an $18 million operations center
 Payroll in Nueces County,$17,224,799
 $6,224,385
 20,000 square feet in size. In total, for
 $7,038,406
 2012, Nueces County
 $30,487,590
had an employment impact of
 Gross County Product 6,699 jobs, with a payroll exceeding $350 million.
 $9,585,100 $62,625,436 $18,158,657 $90,369,193
 
  
 Estimated Impact for Nueces County (2012)
 Economic Impacts
 Direct Indirect Induced Total
 Output $6,927,760,999 $1,373,875,654 $262,724,390 $8,564,361,043
 Employment Full-Time 1,237 3,566 1,896 6,699
 Payroll $136,503,442
 Estimated $150,001,085
 Impact for Victoria $70,148,424
 County (2012) $356,652,951
 Gross County Product $1,304,953,441 $558,635,976
 Economic Impacts $157,694,322 $2,021,283,739
 
   Direct Indirect Induced Total
 Output $18,185,334 $130,715,330 $29,522,352 $178,423,015
 Estimated Impact for San Patricio County (2012)
 Employment Full-Time 155 450 218 823
 Payroll Economic Impacts
 $6,224,385 $17,224,799 $7,038,406 $30,487,590
 Gross County Product Direct Indirect Induced Total
 $9,585,100 $62,625,436 $18,158,657 $90,369,193
 Output $146,780,006 $459,844,145 $40,732,093 $647,356,244
Impacts on 
   San Patricio County 2012
 Employment Full-Time 1,149 440 296 1,885
 Payroll $74,342,549 $29,795,666 $9,021,363
In San Patricio Estimated
 County, pipeline construction (closeImpact
 to $113for Nueces
 million) andCounty construction$113,159,579
 (2012)
 other related such as renovations
 Gross County Product $83,129,484 $119,029,408
 Economic Impacts $24,237,139 $226,396,031
made by Flint Hills to an Ingleside pier produced direct impacts. Activities from the 14-county area with active drilling and
from the 
  refineries in Nueces produce indirect
 Direct Indirect
 impacts in San Patricio. Induced
 Trican Well Service’s Total in Mathis has
 growing operations
generated aOutput
 significant economic impact$6,927,760,999
 from the Eagle Ford Shale. San Patricio County’s
 $1,373,875,654 total employment
 $262,724,390 impact for 2012
 $8,564,361,043
included 1,885Employment Moderate
 jobs with Full-Time
 an over Scenario
 $113 million total Estimated
 payroll. San Impacts
 Patricio for experienced
 also 14-county aArea
 total (2022)
 output of $647.35 million
 1,237 3,566 1,896 6,699
and a grossPayroll
 county product of $226.39 million.
 $136,503,442 Economic Impacts $70,148,424
 $150,001,085 $356,652,951
 Gross County Product Direct
 $1,304,953,441 Indirect
 $558,635,976 Induced $2,021,283,739
 $157,694,322 Total
 Output $53,730,049,832 $4,626,429,911 $2,739,911,604 $61,096,391,346
 
  
 Employment Full-Time 36,653 30,568 22,582 89,803
 Payroll Estimated Impact for San Patricio
 $2,926,790,445 County (2012)
 $1,078,071,987 $617,909,395 $4,622,771,827
 FiscalImpacts
 Economic Impacts
 Direct
 Direct Indirect
 Indirect Induced
 Induced Total Total
 Gross Regional Product
 Output $28,609,986,118
 $146,780,006 $2,623,722,657
 $459,844,145 $1,662,611,492 $647,356,244
 $40,732,093 $32,896,320,267
 Employment Full-Time 1,149 440 296 1,885
 Total Local Revenues $0 $0 $0 $1,824,161,189
 Payroll $74,342,549 $29,795,666 $9,021,363 $113,159,579
 Estimated State Revenue
 Gross County Product $83,129,484$0 $119,029,408 $0
 $24,237,139 $0 $226,396,031
 $1,928,327,622
 
   
  

 Moderate Scenario
 Moderate Estimated
 Scenario Impact
 Estimated for 20-County
 Impacts AreaArea
 for 14-county (2022)
 (2022)
 Economic Impacts
 Direct Indirect Induced Total
 Output $53,730,049,832 $4,626,429,911 $2,739,911,604 $61,096,391,346
 Employment Full-Time 36,653 30,568 22,582 89,803
12 Payroll UTSA Institute for Economic Development
 $2,926,790,445 $1,078,071,987 $617,909,395 $4,622,771,827

Output $184,490,994 $3,898,442,094 $1,029,304,249 $5,112,237,337
 Employment Full-Time 1,485 11,584 7,254 20,323
 Payroll $56,451,461 $586,075,149 $278,179,407 $920,706,017
ImpactsGross
 on Uvalde County 2012
 County Product $102,262,864 $2,404,646,261 $638,405,616 $3,145,314,740
 
  
For 2012, Uvalde County has supported 217 jobs with a total payroll of nearly $6.5 million from Eagle Ford activity. How-
ever, the opportunities brought byEstimated
 the Eagle Ford have exceeded the housing capacity within Uvalde providing builders with
 Impact for Jim Wells County (2012)
the opportunity to extend their services. RV parks, hotels, and temporary housing have become a much needed commodity
 Economic Impacts
within this small community. All opportunities within Uvalde County created by Eagle Ford helped support a total output of
 Direct Indirect Induced Total
just under $37
 Output
 million and a gross county product of $20.39 million in 2012.
 $0 $61,217,057 $6,433,357 $67,650,414
 Employment Full-Time 0 181 49 230
 Payroll $0 $8,876,863 $1,514,066 $10,390,929
 Gross County Product $0 $29,969,215 $3,809,205 $33,778,420
 
  
 Estimated Impact for Uvalde County (2012)
 Economic Impacts
 Direct Indirect Induced Total
 Output $0 $31,925,635 $5,064,638 $36,990,273
 Employment Full-Time 0 177 40 217
 Payroll $0 $5,384,502 $1,052,638 $6,437,140
 Gross County Product $0 $17,447,248 $2,943,725 $20,390,973
 
  
Impacts on Victoria County 2012

Victoria County, also known as the “Golden Triangle,” has seen multiple oil and gas companies flock to its strategically placed
region between Austin, San Antonio, and Corpus Christi. So much so, that Victoria’s downtown area is now undergoing a
much needed renovation of its sidewalks, vegetation, and roads. Companies like Hatec International, Caterpillar Inc., and
Stallion Oil have all contributed to the much needed 823 jobs created in 2012Hatec International has recently put into oper-
ation their newly constructed half-million dollar warehouse, which will employ 10 to 20 workers. Caterpillar’s newly opened
$200 million hydraulic excavator facility will proudly take responsibility for a large chunk of the increase in jobs within Victo-
ria County. The 1.1 million square foot facility will employ an estimated 800 people, of which, 250 have recently been hired.
These jobs provide a total payroll of roughly $30.4 million. Close to $18 million in related construction produced direct
impacts in Victoria County. The County as a whole saw a $178.42 million total output for 2012 and a gross county product of
roughly $90 million.

 Estimated Impact for Victoria County (2012)
 Economic Impacts
 Direct Indirect Induced Total
 Output $18,185,334 $130,715,330 $29,522,352 $178,423,015
 Employment Full-Time 155 450 218 823
 Payroll $6,224,385 $17,224,799 $7,038,406 $30,487,590
 Gross County Product $9,585,100 $62,625,436 $18,158,657 $90,369,193
 
  
 Estimated Impact for Nueces County (2012)
 Economic Impacts
 Direct Indirect Induced Total
Center for Community and Business Reseach 13
 Output $6,927,760,999 $1,373,875,654 $262,724,390 $8,564,361,043

Payroll $6,224,385 $17,224,799 $7,038,406 $30,487,590
 Payroll $136,503,442 $150,001,085 $70,148,424 $356,652,951
 Gross County Product $9,585,100 $62,625,436 $18,158,657 $90,369,193
 Gross County Product $1,304,953,441 $558,635,976 $157,694,322 $2,021,283,739
 
  
 Future Activity/Projections (2022)
 Estimated Impact for Nueces County (2012)
 Estimated Impact for San Patricio County (2012)
 Economic
Projected impacts for 2022 include oil and gas extraction, oil andImpacts
 gas drilling and completion, royalties, and lease payments.
 Economic Impacts
 Direct
The projections listed below are in 2012 Indirect
 dollars to provide an accurate comparison Induced
 of the current andTotal
 projected activity within
 Direct Indirect Induced Total
the 14-counties
 Output directly impacted $6,927,760,999
 by the Eagle Ford Shale. Based on a moderate$262,724,390
 $1,373,875,654 scenario, the total output for the 14-county
 $8,564,361,043
 Output $146,780,006 $459,844,145 $40,732,093 $647,356,244
area isEmployment
 $61.1 billion Full-Time
 with a gross regional product
 1,237 of $32.9 billion. 89,803
 3,566jobs will be supported
 1,896 with a total payroll of over
 6,699
 Employment Full-Time 1,149 440 296 1,885
$4.6 billion.
 PayrollIn 2022, government revenues will be increased to
 $136,503,442 an estimated $1.8
 $150,001,085 million locally and
 $70,148,424 over $1.9 billion at the
 $356,652,951
 Payroll $74,342,549 $29,795,666 $9,021,363 $113,159,579
state level, including severance
 Gross County Product taxes close to $971
 $1,304,953,441 million. $558,635,976 $157,694,322 $2,021,283,739
 Gross County Product $83,129,484 $119,029,408 $24,237,139 $226,396,031
 
  
Moderate Scenario Estimated Impacts for 14-county Area (2022)
 Estimated Impact for San Patricio County (2012)
 Moderate Scenario Estimated Impacts for 14-county Area (2022)
 Economic Impacts
 Economic Impacts
 Direct Indirect Induced Total
 Direct Indirect Induced Total
 Output $146,780,006 $459,844,145 $40,732,093 $647,356,244
 Output $53,730,049,832 $4,626,429,911 $2,739,911,604 $61,096,391,346
 Employment Full-Time 1,149 440 296 1,885
 Employment Full-Time 36,653 30,568 22,582 89,803
 Payroll $74,342,549 $29,795,666 $9,021,363 $113,159,579
 Payroll $2,926,790,445 $1,078,071,987 $617,909,395 $4,622,771,827
 Gross County Product $83,129,484 $119,029,408 $24,237,139 $226,396,031
 Fiscal Impacts
 
  
 Direct Indirect Induced Total
 Gross Regional Product $28,609,986,118 $2,623,722,657 $1,662,611,492 $32,896,320,267
 Moderate Scenario Estimated Impacts for 14-county Area (2022)
 Total Local Revenues $0 Economic Impacts$0 $0 $1,824,161,189
 Direct Indirect Induced Total
 Estimated
 Output State Revenue $0 $0 $0 $1,928,327,622
 $53,730,049,832 $4,626,429,911 $2,739,911,604 $61,096,391,346
 
  Employment Full-Time
 36,653 30,568 22,582 89,803
 Payroll
Moderate Scenario Estimated Impact
 Moderate for 20-County
 Scenario AreaImpact
 Estimated
 $2,926,790,445 (2022)for 20-County Area
 $1,078,071,987 (2022)
 $617,909,395 $4,622,771,827
 Fiscal Impacts
With the six indirectly impacted counties Direct Indirect estimates, theInduced
 included in the 2022 projected total output is $89.4 Total
 billion. That is a
 Gross
roughly Regional
 $28 billion Product
 (46%) $28,609,986,118
 increase from the total output estimate$2,623,722,657
 for the 14 county$1,662,611,492 $32,896,320,267
 region alone. The gross regional product
is $41.75 billion, 26.9% greater than the gross regional product when these six counties are not included. Cumulatively, the
 Total Local Revenues $0 $0 $0 $1,824,161,189
20-counties impacted by the Eagle Ford Shale will support 127,919 jobs, with a total payroll of just under $6.5 billion. Total
revenue going towards
 Estimated State the local governments within$0the area, for 2022, is $2.1 billion.
 Revenue $0 The state government
 $0 will collect over
 $1,928,327,622
$2.21 
  billion in estimated revenue.

 Moderate Scenario Estimated Impact for 20-County Area (2022)
 Economic Impacts 
  
 
   Direct Indirect Induced Total
 Output $72,608,008,773 $12,322,801,758 $4,538,505,332 $89,469,315,863
 Employment Full-Time 38,276 54,293 35,350 127,919
 Payroll $3,203,651,003 $2,176,028,949 $1,097,257,541 $6,476,937,494
 
   
   
   
   
  
 
   
   Fiscal Impacts
 
   
   Direct Indirect Induced Total
 Gross Regional Product $32,086,557,195 $6,884,543,202 $2,779,891,781 $41,750,992,178
 Total local revenues $0 $0 $0 $2,099,421,821
 Estimated State Revenue $0 $0 $0 $2,211,518,153
 
  
 Estimated 
  Impacts 
  for 
  Eagle 
  Ford 
  Shale 
  at 
  the 
  Regional 
  Level 
  2022 
  in 
  Millions 
  of 
  Dollars 
  
 Total Impacts:Three Scenarios
 Low High
14 Estimate Moderate
 UTSAEstimate
 Institute forEstimate
 Economic Development
 Output $15,882 $61,096 $112,519

Payroll $3,203,651,003 $2,176,028,949 $1,097,257,541 $6,476,937,494
 
   
   
   
   
  
 
   
   Fiscal Impacts
Estimated
 
   
   Impacts for Eagle Ford Shale at Direct
 the Regional Level 2022 in Millions of Dollars
 Indirect Induced Total
 Gross Regional Product $32,086,557,195 $6,884,543,202 $2,779,891,781 $41,750,992,178
Three scenarios wererevenues
 Total local projected in determining the estimated impact of the Eagle Ford Shale’s directly affected 14 counties.
 $0 $0 $0 $2,099,421,821
From a moderate perspective,
 Estimated State Revenue
 89,803 jobs, with a total payroll of $4.6 billion are anticipated. The total output is expected to
 $0 $0 $0 $2,211,518,153
be just above $61 billion, increasing the gross regional product to an estimated $32.89 billion. In 2022, the estimated local
 
  
government revenue of $1.82 billion will nearly equal the state revenue of $1.92 billion, which includes severance tax.
 Estimated 
  Impacts 
  for 
  Eagle 
  Ford 
  Shale 
  at 
  the 
  Regional 
  Level 
  2022 
  in 
  Millions 
  of 
  Dollars 
  
 Total Impacts:Three Scenarios
 Low High
 Estimate
 Economic Impacts 
  Moderate Estimate Estimate
 Output $15,882 $61,096 $112,519
 
   Direct Indirect Induced Total
 Employment 24,962 89,803 146,000
 Output $72,608,008,773 $12,322,801,758 $4,538,505,332 $89,469,315,863
 Payroll $1,518 $4,623 $5,071
 Employment Full-Time
 Gross 
  Regional 
  Product 38,276 $8,168 54,293 $32,896 35,350 $63,404 127,919
 Payroll $3,203,651,003
 Estimated 
  Local 
  Government 
  Revenues $2,176,028,949
 $367 $1,097,257,541
 $1,824 $6,476,937,494
 $4,187
 
   
   $385 
   $1,928 
   $4,450 
  
 Estimated 
  State 
  Revenue, 
  incl. 
  s everance 
  taxes 
  
 
   
   Fiscal Impacts
 
   
  
 Moderate 
   Direct 2022 
  
 Scenario: 
  Top 
  10 
  by 
  Employment 
   Indirect Induced Total
 Gross Regional Product $32,086,557,195 $6,884,543,202 $2,779,891,781 $41,750,992,178
 Industry 
   Employment 
  
 Total local revenues $0 $0 $0
 Extraction 
  of 
  oil 
  and 
  natural 
  gas 
   19,476 
  $2,099,421,821
 Estimated
Moderate State
 Scenario: Top aRevenue
 10 by Employment
 Support 
   ctivities 
   for 
  oil 
  and 
  g2022 $0
 as 
  operations 
   $0 $09,528 
  $2,211,518,153
 
   Drilling 
  oil 
  and 
  gas 
  wells 
   7,492 
  
In 2022, Estimated 
  
 the industry I of extracting
 mpacts 
   f or 
   E oil
 agle 
   and
 F natural
 ord 
   S hale 
   agas
 t 
   t will
 he 
  
 Maintenance 
  and 
  repair 
  construction 
  of 
  nonresidential 
   R still be
 egional 
   much
 L evel 
   more
 2 022 
   i dominant
 n 
   M illions 
   than
 o f 
   D any other.
 ollars 
   Of the top ten in-
dustries within thestructures 
  
 Eagle Ford Shale for 2022, Total the top three industries
 Impacts:Three are directly associated with the
 Scenarios oil and gas sector of the
 6,689 
  
economy. Extraction ofservices 
  
 oil and anatural gas (19,476), Low
 support activities for oil and gas operations (9,528), High
 Food 
   nd 
  drinking 
   establishments 
   4,608 
   and drilling oil and
gas wells (7,492) will employ -thousands of workers . MaintenanceEstimate and Moderate
 repair Estimate
 construction of Estimate structures will
 nonresidential
 Output Architectural, 
   e ngineering, 
   a nd 
   r elated 
   s ervices 
  
 $15,882 $61,096 2,356 
  
employ 6,689 workers, some of which may be indirectly associated with the oil and gas industry. The $112,519
 fifth highest employ-
 Employment Wholesale 
  trade 
  businesses 
   24,962 89,803 2,293 
  
 146,000
ment industry within the Eagle Ford Shale is not surprising. Not everyone can work in the oil and gas industry - people have
 Payroll Civic, 
  social, 
  professional, 
  and 
  similar 
  organizations 
   $1,518 $4,623 2,263 
  
 $5,071
to eat. The food services
 Gross 
  Regional 
  
 and
 Product
 drinking industry will employ an estimated
 $8,168
 4,607 workers in
 $32,896
 2022. Lastly, the architectural and
 $63,404
 Transport 
   by 
  truck 
   2,023 
  
engineering (2,356),Local 
  
 Estimated 
   civic/social andRprofession
 evenues (2,263), trucking (2,023), and legal service
 $1,824 industries (1,916)
 $4,187 will employ
thousands of workers. SG overnment 
  
 Legal 
  Altogether,
 ervices 
   $367
 in 2022, the top ten employment industries within the Eagle Ford 1,916 
  
 Shale will support an
 $385 $1,928 $4,450
estimated 
  Estimated 
   State 
  Revenue, 
  
 58,644 citizens of Southincl. 
   s everance 
  taxes
 Texas. 
  
 
  
 
  Moderate 
  Scenario: 
  Top 
  10 
  by 
  Employment 
  2022 
  
 
   Industry 
   Employment 
  
 
   Extraction 
  of 
  oil 
  and 
  natural 
  gas 
   19,476 
  
 
  
 Support 
  activities 
  for 
  oil 
  and 
  gas 
  operations 
   9,528 
  
 
  
 
   Drilling 
  oil 
  and 
  gas 
  wells 
   7,492 
  
 Maintenance 
  and 
  repair 
  construction 
  of 
  nonresidential 
  
 structures 
   6,689 
  
 Food 
  services 
  and 
  drinking 
  establishments 
   4,608 
  
 Architectural, 
  engineering, 
  and 
  related 
  services 
   2,356 
  
 Wholesale 
  trade 
  businesses 
   2,293 
  
 Civic, 
  social, 
  professional, 
  and 
  similar 
  organizations 
   2,263 
  
 Transport 
  by 
  truck 
   2,023 
  
 Legal 
  Services 
   1,916 
  
 
  
 
   Community and Business Reseach
Center for 15

Moderate Scenario: Top 10 by Output 2022

The extraction of oil and natural gas will have a total output of nearly $32 billion in 2022. Without a doubt, this industry will
have the largest output of any industry within the Eagle Ford Shale. The wholesale trade business and the electric power gen-
eration, transmission, and distribution industry will bring in a total output of $385.16 million and $320.70 million, making
them the ninth and tenth highest grossing industries within the 14 counties. Other industries that will bring in some of the
largest total outputs for 2022 are:

 • Drilling oil and gas wells- $9.4 billion
 • Petroleum refineries- $4.86 billion
 • Support activities for oil and gas operations- $4.64 billion
 • Petrochemical manufacturing- $2.94 billion
 • Maintenance and repair construction of nonresidential structures- $766.22 million
 • Monetary authorities and depository credit intermediation activities- $674.05 million
 • Imputed rental activity for owner-occupied dwellings- $554.56 million
 Moderate 
  Scenario: 
  Top 
  10 
  by 
  Output 
  2022 
  
 Industry Output
 Extraction of oil and natural gas $31,986,688,002
 Drilling oil and gas wells $9,407,339,171
 Petroleum refineries $4,867,611,433
 Support activities for oil and gas operations $4,648,032,429
 Petrochemical manufacturing $2,946,029,243
 Maintenance and repair construction of nonresidential structures $766,221,458
 Monetary authorities and depository credit intermediation activities $674,057,950
 Imputed rental activity for owner-occupied dwellings $554,567,867
 Wholesale trade businesses $385,167,695
 Electric power generation, transmission, and distribution $320,701,151 
  

 Moderate 
  Scenario: 
  Top 
  10 
  by 
  Gross 
  Regional 
  Product 
  (Value 
  Added) 
  2022 
  
 Industry Value 
  Added
 Extraction of oil and natural gas $20,370,213,190
 Drilling oil and gas wells $5,342,045,443
 Support activities for oil and gas operations $1,789,970,764
 Petroleum refineries $870,854,488
 Maintenance and repair construction of nonresidential structures $455,073,185
 Monetary authorities and depository credit intermediation activities $451,684,635
 Imputed rental activity for owner-occupied dwellings $369,735,748
 Petrochemical manufacturing $296,192,305
 Wholesale trade businesses $276,669,142
 Electric power generation, transmission, and distribution $199,448,724 
  

 Moderate 
  Scenario 
  forecasts 
  for 
  New 
  Oil 
  and 
  Gas 
  Wells, 
  2012-‐2022 
  
 Year Moderate High Low
 2012 2,983 2,983 2,983
 2013 3,136 5,765 1,423
 2014 2,206 3,946 928
 2015 1,882 3,281 772
 2016 1,861 3,222 747
 2017 1,909 3,296 758
 2018 1,968 3,402 775
 2019 2,022 3,462 781
16 2020 2,065 3,524 792 UTSA Institute for Economic Development
 2021 2,133 3,602 817

Moderate Scenario: Top 10 by Gross Regional Product (Value Added) 2022

The estimated gross regional product for the top ten industries in the Eagle Ford Shale shows that Extraction of oil and natural
gas, with anModerate 
   Scenario: 
  
 added economic valueTop 
  of10 
  
 $20.37by 
  Output 
  
 billion, 2022 
  
 is the largest for 2022. The tenth largest added economic value is the
electric power generation, transmission, and distribution industry, with a gross regional Output
 Industry product of just under $200 million.
 Extraction of oil and natural gas
Other industries that provide the highest value added to the Eagle Ford Shale economic are: $31,986,688,002
 Drilling oil and gas wells $9,407,339,171
 Petroleum
 • Drilling refineries
 oil and gas wells- $5.34 billion $4,867,611,433
 Support activities for oil and gas operations
 • Support activities for oil and gas operations- $1.78 billion $4,648,032,429
 Petrochemical
 • Petroleum manufacturing
 refineries- $870.85 million $2,946,029,243
 Maintenanceand Moderate 
  
 andrepair
 repairconstruction S
 construction ofcenario: 
   T op 
  
 of nonresidential 1 0 
   b y 
   O utput 
   2 022 
  
 • Maintenance nonresidentialstructures structures- $455.07 million $766,221,458
 Monetary authorities and depository credit intermediation Industry activities $674,057,950 Output
 • Monetary authorities and depository credit intermediation activities- $451.68 million
 Imputedrental
 • Imputed rentalactivity Extraction
 activity for of oil and natural
 for owner-occupied
 owner-occupied dwellings
 dwellings-gas $369.73 million $554,567,867 $31,986,688,002
 Wholesale trade Drilling oil and gas wells
 businesses $385,167,695 $9,407,339,171
 • Petrochemical manufacturing- $296.19 million
 Electric power Petroleum refineries and distribution $4,867,611,433
 • Wholesale trade generation,
 businesses- transmission,
 $276.66 million $320,701,151 
  
 Support activities for oil and gas operations $4,648,032,429
 Moderate 
  Scenario: 
  Petrochemical
 Top 
  10 
  by 
  Gross 
   R egional 
  
 manufacturing P roduct 
   ( Value 
   A dded) 
   2 022 
   $2,946,029,243
 Maintenance Industry
 and repair construction of nonresidential structures Value 
  Added $766,221,458
 Extraction of oil and natural
 Monetary gasauthorities and depository credit intermediation activities $20,370,213,190 $674,057,950
 Drilling oil and gas wellsImputed rental activity for owner-occupied dwellings $5,342,045,443 $554,567,867
 Support activities for Wholesale
 oil and gastrade operations
 businesses $1,789,970,764 $385,167,695
 Petroleum refineries Electric power generation, transmission, and distribution $870,854,488 $320,701,151 
  
 Maintenance and repair construction of nonresidential structures $455,073,185
 Moderate 
   S cenario: 
   T op 
  
 Monetary authorities and depository credit intermediation activities 1 0 
   b y 
   G ross 
   R egional 
   P roduct 
   ( Value 
   Added) 
  2022 
  
 $451,684,635
 Imputed rental activity for owner-occupied dwellingsIndustry $369,735,748Value 
  Added
 Extraction of oil and natural gas
 Petrochemical manufacturing $296,192,305 $20,370,213,190
 Wholesale trade businessesDrilling oil and gas wells $276,669,142 $5,342,045,443
 Electric power generation,Support activities forand
 transmission, oil and gas operations
 distribution $199,448,724 
   $1,789,970,764
 Petroleum refineries $870,854,488
 Moderate 
  Scenario 
  fMaintenance
 orecasts 
  for 
  N ew 
  repair
 and Oil 
  and 
   Gas 
  Wells, 
  of2012-‐2022 
  
 construction nonresidential structures $455,073,185
 Year Moderate
 Monetary High
 authorities Low
Moderate Scenario forecasts for New Oil and Gasand Wells, depository 2012-2022 credit intermediation activities $451,684,635
 2012 2,983
 Imputed rental activity 2,983for owner-occupied 2,983 dwellings $369,735,748
 2013 3,136 5,765
By 2022, it is moderately Petrochemical
 forecasted that there manufacturing
 will be a total1,423 of 24,363 wells in the Eagle Ford Shale. 2,199 will be$296,192,305 new wells
 2014 2,206
 Wholesale trade businesses 3,946 928 $276,669,142
completed in 2022. The Eagle Ford will transition from mainly drilling to more extracting and processing of oil and gas. The
 2015 1,882
 Electric power generation, 3,281 772
 transmission, and distribution $199,448,724 
  
rise and fall in new well activity over the forecast period are attributable to lag effects projected price declines by the Energy
 2016 1,861 3,222 747
Information Administration.
 2017 Moderate 
  
 1,909 Scenario 
   forecasts 
  f758
 3,296 or 
  New 
  Oil 
  and 
  Gas 
  Wells, 
  2012-‐2022 
  
 2018 1,968Year Moderate 775 High
 3,402 Low
 2019 2,022 2012 2,983
 3,462 781 2,983 2,983
 2020 2,065 2013 3,136
 3,524 792 5,765 1,423
 2021 2,133 2014 2,206
 3,602 817 3,946 928
 2022 2,199 2015 1,882
 3,733 851 3,281 772
 2012-‐2022 24,363 2016 1,861 11,627 3,222
 40,217 
   747
 2017 1,909 3,296 758
 
   2018 1,968 3,402 775
 
   2019 2,022 3,462 781
 
   2020 2,065 3,524 792
 Moderate 
  Scenario 
  forecasts 
  
 2021 f or 
   p roduction 
  
 2,133 f rom 
   N ew 
   a nd 
  
 3,602 O ld 
   W ells, 
  
 817 2012-‐2022 
  
 2022 2,199 3,733 851
 2012-‐2022 24,363 40,217 11,627 
  

Center for Community and Business
 
   Reseach 17

Moderate Scenario Forecasts for Production from New and Old Wells, 2012-2022

As new wells are drilled and completed, the production for gas, oil, casinghead, and condensate will all increase. The relation-
ship between completed wells and production from 2012 to 2022 will be negative. This means that the number of wells being
drilled and completed will decrease, but the production from those wells will increase. In 2012 the total production for gas
(370 mmcf ), casinghead (204 mmcf ), oil (131 thousand bbls), and condensate (25 thousand bbls) in the Eagle Ford Shale
- increased significantly. In, 2022 in a moderate scenario the production for all four sources of energy will also increase signifi-
cantly. This most likely suggests that there will be fewer jobs focused on the drilling and completion of wells, although not by
much, and that more jobs will be focused on the extraction and processing of oil and gas.

 Gas 
  Production 
   Casinghead 
   Oil 
  thousands 
   Condensate 
  
 Year
 thousands 
  mcf thousands 
  mcf bbls thousands 
  bbls
 2012 370,532 204,545 131,209 25,025
 2013 383,368 211,631 192,457 36,707
 2014 350,685 193,588 193,456 36,898
 2015 333,757 184,244 195,454 37,279
 2016 330,481 182,435 203,736 38,858
 2017 334,235 184,508 215,074 41,021
 2018 341,631 188,591 227,694 43,428
 2019 350,899 193,707 240,680 45,905
 2020 361,026 199,297 253,523 48,354
 2021 372,968 205,889 267,282 50,978
 2022 406,423 224,358 281,353 53,662 
  

 Estimated Impact for Bexar (2022)
 Economic Impacts 
  
 
   
   Direct Indirect Induced Total
 Output $582,139,703 $4,784,297,993 $1,284,207,674 $6,650,645,369
 Employment Full-
 49 15,332 8,899 24,280
 Time
 Payroll $5,304,502 $728,093,996 $339,194,606 $1,072,593,105
 Gross County
 $120,334,498 $3,000,310,232 $800,051,808 $3,920,696,538
 Product
 
  
 Estimated Impact for Jim Wells County (2022)
 Economic Impacts
 Direct Indirect Induced Total
 Output $0 $79,595,202 $8,081,062 $87,676,264
 Employment Full-Time 0 224 60 285
 Payroll $0 $11,243,123 $1,883,645 $13,126,769
 Gross County Product $0 $38,195,947 $4,770,622 $42,966,570
 
  
 Estimated Impact for Nueces County (2022)
 Economic Impacts
 Direct Indirect Induced Total
 Output $17,880,005,165 $1,540,050,503 $440,209,311 $19,860,264,979
 Employment Full- 1,539 6,684 3,340 11,563
 Time
 Payroll $263,451,547 $269,643,448 $123,684,010 $656,779,004
18 UTSA Institute for Economic Development
 Gross County $3,278,468,807 $852,782,714 $273,790,889 $4,405,042,411

Gas 
  Production 
   Casinghead 
   Oil 
  thousands 
   Condensate 
  
 Year
 Future Impacts of Additional Counties
 thousands 
  mcf thousands 
  mcf bbls thousands 
  bbls
 2012 370,532 204,545 131,209 25,025
Estimated Impact for 2013
 Bexar (2022) 383,368 211,631 192,457 36,707
 2014 350,685 193,588 193,456 36,898
Although the oil and2015 gas industry has 333,757 184,244
 always been a lucrative field, the drilling 195,454 37,279 must be done in
 and extracting of resources
 2016 330,481 182,435
desolate fields where city life is nonexistent. Historically, energy extraction companies have relied 203,736 38,858
 on nearby cities with air-
 2017 334,235 184,508 215,074
ports, colleges, housing and a large workforce to base their operations. San Antonio is the largest metropolitan area adjacent 41,021
to the energy boom, and 2018as a result 341,631 188,591 impact from227,694
 will experience an indirect the Eagle Ford. As with43,428
 the 2012 impacts, Bexar
 2019 350,899 193,707
benefits with its refinery operations, producing direct impacts, and from some refinery operations 240,680 45,905
 in the Corpus Christi area.
For 2022, Bexar is assumed 2020 to use 14,000 361,026barrels of oil 199,297
 per day for refining.253,523 48,354
 Additionally, other Eagle Ford activities produce
indirect impacts. In ten years, 2021 the 372,968
 total output for Bexar205,889
 County will be 267,282
 upwards of $6.65 50,978
 Gas 
  Production 
   Casinghead 
   Oil 
  thousands 
   Condensate 
  the gross county product
 billion and
 Year
will be $3.92 billion. For the 2022 406,423
 24,280 jobs 224,358 281,353 to $1.1 53,662 
  
 thousands 
   mcfsupported, the total
 thousands 
   mcf payroll will have increasedthousands 
  
 bbls billion.
 bbls
 2012 370,532 204,545 Impact for
 Estimated 131,209
 Bexar (2022) 25,025
 2013 383,368 211,631 192,457
 Economic Impacts 
   36,707
 2014 350,685 193,588 193,456 36,898
 
   
   Direct Indirect Induced Total
 2015 333,757 184,244 195,454 37,279
 Output $582,139,703 $4,784,297,993 $1,284,207,674 $6,650,645,369
 2016 330,481 182,435 203,736 38,858
 Employment Full-
 2017 334,235 49
 184,508 15,332
 215,074 8,899
 41,021 24,280
 Time
 2018
 Payroll 341,631 188,591
 $5,304,502 227,694
 $728,093,996 43,428 $1,072,593,105
 $339,194,606
 2019
 Gross County 350,899 193,707 240,680 45,905
 $120,334,498 $3,000,310,232 $800,051,808 $3,920,696,538
 2020
 Product 361,026 199,297 253,523 48,354
 
  
 2021 372,968 205,889 267,282 50,978
 2022 406,423 224,358 281,353 53,662 
  
 Estimated Impact for Jim Wells County (2022)
 Estimated Impact for Bexar
 Economic (2022)
 Impacts
 Direct
 Economic Impacts 
  Indirect Induced Total
 
   
   Output
Estimated Impact for Jim Wells County Direct (2022) $0 Indirect $79,595,202 Induced$8,081,062Total$87,676,264
 Employment Full-Time
 Output $582,139,703 0 $4,784,297,993 224
 $1,284,207,674 60
 $6,650,645,369 285
As Alice, Texas begins
 Payroll
 Employment the updates
 Full- on their airport and$0 plans to construct$11,243,123
 a $4 million civic$1,883,645
 center, it’s clear$13,126,769
 that the city does
 49 15,332 8,899 24,280
 Time
not see the benefits Gross of theCounty
 Eagle Ford Shale halting any$0
 Product time soon. With $38,195,947
 the estimated total output for 2022
 $4,770,622 being $87.68
 $42,966,570
 Payroll $5,304,502 $728,093,996 $339,194,606 $1,072,593,105
million, it’s easy to 
   see they know what they’re doing. Even ten years later, the Eagle Ford will create 285 new jobs in Jim
Wells County,Gross
 with aCountypayroll total of $13.12 million. The gross
 $120,334,498 county product estimated
 $3,000,310,232 for 2022
 $800,051,808 will be slightly under $43
 $3,920,696,538
 Product
million, roughly a 27% increase in value added to the economy
 Estimated Impactsince 2012. County (2022)
 for Nueces
 
  
 Economic Impacts
 EstimatedDirect Indirect
 Impact for Jim Wells Induced
 County (2022) Total
 Output $17,880,005,165
 Economic$1,540,050,503
 Impacts $440,209,311 $19,860,264,979
 Employment Full- Direct 1,539 Indirect 6,684 Induced3,340 Total 11,563
 Time
 Output $0 $79,595,202 $8,081,062 $87,676,264
 Payroll $263,451,547 $269,643,448 $123,684,010 $656,779,004
 Employment Full-Time 0 224 60 285
 Gross County $3,278,468,807 $852,782,714 $273,790,889 $4,405,042,411
 Payroll
 Product $0 $11,243,123 $1,883,645 $13,126,769
 Gross
 
   County Product $0 $38,195,947 $4,770,622 $42,966,570
 
  
 *As with the 2012 Impacts for Jim Wells County, Eagle Ford’s Impact on Jim Wells County in 2022 is underestimated.
 Estimated Impact for Nueces County (2022)
 Economic Impacts
 Direct Indirect Induced Total
 Output $17,880,005,165 $1,540,050,503 $440,209,311 $19,860,264,979
 Employment Full- 1,539 6,684 3,340 11,563
 Time
 Payroll $263,451,547 $269,643,448 $123,684,010 $656,779,004
Center for Community and Business Reseach 19
 Gross County $3,278,468,807 $852,782,714 $273,790,889 $4,405,042,411

You can also read