Oil and natural gas production in Eagle Ford Shale generated an estimated $87 billion in total economic output for Texas and supported nearly 155,000 full-time jobs in 2013.
That’s according to a new study released Tuesday by the University of Texas at San Antonio Institute for Economic Development. The shale region, which encompasses a 21-county, and generated more than $4.4 billion in tax revenue to local and state governments in 2013.
Based on these updated figures, UTSA projects that the shale region will support more than 196,000 jobs and generate $137 billion in total economic output for Texas by 2013. Economists are taking into account the economic impact of new manufacturing projects associated with the rise of natural gas production as well as the construction of additional oil-and-gas processing, refining and port facilities.
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Since Petrohawk Energy Corp. discovered the first pocket of natural resources from this geographic zone in 2007, more companies quickly followed and oil-and-gas production has increased steadily since. To put it in perspective, oil and condensate production in the shale has grown from 581 barrels per day in 2008 to more than 1.5 million barrels per day as of August 2014.
Still, growth in the shale-producing region in South Texas is not without its challenges.
Robert McKinley, associate vice president of economic development for UTSA, said investments in roads, water, wastewater, education and medical facilities will be key to sustaining this long-term growth in South Texas.
“The ongoing activity presents South Texas community leaders with a rare opportunity to ensure the long-term viability of their cities, towns and counties,” said Thomas Tunstall, research director of the UTSA Institute for Economic Development.