The Eagle Ford Shale is a hydrocarbon producing formation that is a source rock for Austin Chalk which is approximately 4,000 to 14,000 feet below the surface. The core focus of this drilling activity is between 10,000 and 12,000 feet below surface. This discovery is of significant importance in that the formation contains both natural gas and oil deposits. The projections put forth in the initial study completed in February 2011 were conservative based on limited information available at the time. Since then, production conducted in 2010 has far exceeded the expectations outlined in the initial report due to rapidly evolving business activity.

Indeed, activity in the Eagle Ford Shale has expanded at an unprecedented rate, and the increase in production from 2010 to 2011 has been accompanied by equally significant increases in permitting, well drilling and completion, residential and commercial construction, pipeline construction, and numerous other support activities. This report serves to provide an overview of all activity related to the Eagle Ford Shale play and its economic impact.

This study will use 2011 as the baseline case for information on production, drilling, and related activities, to help interpret the rapid changes occurring in the region. This study also has been adjusted to focus specifically on the impacts of 14 producing counties that are of particular interest 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 non-production activity is occurring in 6 peripheral counties and are included in the analysis:
Bexar, Jim Wells, Nueces, San Patricio, Uvalde and Victoria.

In less than three years of development, the Eagle Ford Shale already accounts for over six percent of the Gross Regional Product for the 24-countySouth Texas area it encompasses, according to a study released today by the Center for Community and Business Research at the University of Texas at San Antonio Institute for Economic Development.

"The Eagle Ford Shale may be one of the largest onshore natural gas and oil discoveries in the past half century," said Dominique Halaby, the center's director. "In 2010 alone, this newest of the Texas shale plays generated close to $2.9 billion in revenue, supported approximately 12,600 full-time jobs in the area, and provided nearly $47.6 million in local government revenue."

 

-Source http://news.yahoo.com/s/usnw/20110224/pl_usnw/DC54136