Shale plays show how resource work helps economies

Bob Tippee
Editor

The economic goodness of resource development is, or should be, axiomatic.

With inputs of labor and capital, resources yield wealth, the generation of which creates jobs, incomes, and tax revenue for governments.

In towns surrounded by active oil and gas development, prosperity becomes manifest in no-vacancy signs aglow outside motels, new pickup trucks cruising streets, parking lots overflowing around steak houses.

For practical economic analysis, quantification is unnecessary. Who, besides the owner, needs sales figures from the convenience store? Most people can deduce what they need to know about business conditions from shelves empty by sundown every Friday in the beer cooler.

Still, numbers can be instructive for anyone squeamish about the drilling of holes and extraction of hydrocarbons.

A new report by the University of Texas at San Antonio Institute for Economic Development’s Center for Community and Business Research shows how the Eagle Ford shale play helps 24 Texas counties.

Last year, says the study, which was funded by America’s Natural Gas Alliance, Eagle Ford activity generated $2.9 billion in total revenue and supported 12,601 full-time jobs, yielding $511.8 million in salaries and benefits to workers.

The activity contributed $1.3 billion to gross state product, boosting state-government revenue by $61 million and local government revenue by $48 million.

In a similar study last year for the American Petroleum Institute, Timothy J. Considine of Natural Resources Economics Inc., Laramie, Wyo., estimated the Marcellus shale play in 2009 contributed $4.8 billion to gross regional product of West Virginia and Pennsylvania. Marcellus activity generated more than 57,357 jobs and local, state, and federal tax collections totaling $1.7 billion, Considine said.

In a country where 13.9 million people are looking for work and many states face insolvency, numbers like these deserve more attention than they receive in ludicrous discussions about the supposed need to limit shale drilling.

Nobody close to the action needs gee-whiz data to see that people in booming shale plays are working hard and eating steak. Most have places to stay.

(Online Feb. 25, 2011; author’s e-mail: bobt@ogjonline.com)

Related Articles

Encana to focus spending on four core shale assets in 2015

12/16/2014 Encana Corp., Calgary, reported plans to spend $2.7-2.9 billion on its capital budget with roughly 80% of this total directed towards four of what ...

Encana plans to hit the ground running in Permian

12/12/2014 Encana Corp. has announced its second major acquisition in a Texas oil play this year, agreeing in September to acquire Permian basin-focused produ...

Eagle Ford sweet spots still profitable

12/12/2014 The average Eagle Ford well remains viable with US light, sweet crude prices at $80/bbl, but the economics of some wells outside the play's sweet s...

Eagle Ford economic boost jumps to $87 billion

12/12/2014 The Texas Eagle Ford shale supported more than 155,000 full-time equivalent jobs and provided more than $2.2 billion in revenue for local governmen...

WoodMac: US unconventional enters new stage

12/12/2014 The unconventional oil and gas revolution is entering into a new stage with drilling and completion techniques pioneered in unconventional plays no...

US needs more data before ending crude export ban, House panel told

12/11/2014 Much more environmental impact information is needed before the US can reasonably remove crude oil export limits, a witness told a House Energy and...

Goodrich considers selling Eagle Ford assets

12/10/2014 Goodrich Petroleum Corp., Houston, is considering the sale of at least some of its shale assets in the South Texas Eagle Ford, the company said, ad...

ConocoPhillips slashes 2015 capital budget

12/08/2014 ConocoPhillips has elected to reduce its 2015 capital budget to $13.5 billion, down 20% compared with this year’s budget. The news comes on the hee...

BHI: Kansas, Granite Wash lead week of modest changes in US rig count

12/05/2014 The US drilling rig count opened the month by adding 3 units to reach 1,920 rigs working during the week ended Dec. 5, Baker Hughes Inc. reported. ...

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected