Mayor Castro Responds to $61 Billion Economic Impact from Eagle Ford Shale
April 16, 2013 | posted by The Institute
By: SAEDF Staff
At $28 billion in 2012, the Eagle Ford Shale is the most invested-in oilfield in the world.
That is what The University of Texas at San Antonio Institute for Economic Development shared with South Texas last week in a much-anticipated release of its study on the “Economic Impact of the Eagle Ford Shale”.
With 116,508 full-time jobs supported with $4.96 billion in payroll feeding the region in 2012, the Eagle Ford Shale is now ranked as the largest single oil and natural gas development in the world based on capital expenditures.
San Antonio Mayor Julian Castro, who attended the presentation and panel moderated by SAEDF Chairman Henry Cisneros, called the results of the study great news for San Antonio, the regional headquarters for Eagle Ford activity, an enviable position coveted by other communities. “San Antonio is the big city in the region and, as such, we play a special role for the companies that are overseeing the activity in the Eagle Ford Shale region.””
Since its discovery, San Antonio has experienced an immense economic impact from the indirect activities that the oil and gas industry relies on, such as supply chain activity, regional headquarters, refining, construction and labor supply. Close to $161 million in construction activity for oilfield service corporations like Halliburton, and close to $24 million in pipeline construction produced direct impacts to Bexar county in 2012.
In March, SAEDF joined Houston-based Baker Hughes, at the oilfield provider’s grand opening of a 60-acre site in San Antonio with a capital investment in excess of $30 million. Baker Hughes’ presence in the region brings 500 new jobs with an average salary of $60,000.
Castro’s call-to-action zeroed in on a focused investment in infrastructure and people. “We have to work with our universities and community colleges to produce the human capital needed to meet the demands of the Eagle Ford Shale.”
Earlier this month, the South Texas Energy & Economic Roundtable (STEER), a trade association whose members comprise 11 oil and natural gas operators in South Texas, opened its doors at the Pearl Complex to meet the growing needs of communities in South Texas.
Mayor Castro discussed the importance of economic and infrastructure development, citing the importance of San Antonio’s continued transformation in the performing arts, parks, downtown development and others. “All in all, this is great news but a reminder of the challenges that we have in front of us to be a more metropolitan, workforce-ready city that is an exciting place to live and work,” said Castro. “San Antonio and South Texas have been fortunate to see this take place in our own backyard.”