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UTSA providing integral research on growing impact of Eagle Ford Shale

Ongoing research at The University of Texas at San Antonio Institute for Economic Development is serving as the preeminent resource to state and local officials in forecasting the evolving economic impact of the Eagle Ford Shale. The Eagle Ford Shale is a 50 mile-wide by 400 mile-long formation that runs from South Texas to the east. The formation produces natural gas, condensate, oil, and natural gas liquids, with margins more favorable than other shale plays.

In its most recent study, released this week, UTSA forecasted that development of oil and natural gas in the Eagle Ford Shale added more than $61 billion in total economic impact across a 20-county region in Central and South Texas during 2012. Additionally, it supported 116,000 jobs. In 2011, UTSA reported the region generated $25 billion in economic impact and supported 117,000 jobs. The study projects that the region will support 127,000 jobs and produce an economic impact of $89 billion for Texas in 2022.

This month’s study is the fifth examining the Eagle Ford Shale over the past year alone, making UTSA the leading source of information about the growth and impact of the South Texas region.

“The research conducted at UTSA provides us with valuable information, findings and recommendations related to the Eagle Ford Shale and its impact on Texas’ economy,” said Senator Judith Zaffirini, D-Laredo. “This research is a wonderful resource not only for state policymakers and business leaders, but also for all stakeholders who are working to create sustainable communities throughout the shale region. Equally important, it underscores the critical role of the higher education community in public service and economic development.”

The UTSA Institute for Economic Development is dedicated to creating jobs, growing businesses and fostering economic development. Its 12 centers and programs provide professional business advising, technical training, research and strategic planning for entrepreneurs, business owners and community leaders. Programs serve San Antonio and the Texas-Mexico border area as well as regional, national and international stakeholders. Together with federal, state and local governments, and private businesses, the IED fosters economic and community development in support of UTSA’s community engagement mission.

“One of the key indicators of a Tier One university is its contribution to society,” said UTSA President Ricardo Romo. “The Institute for Economic Development has taken a leading role in assessing the impact of the Eagle Ford Shale. Its work is another example of UTSA’s commitment to become a top-tier research institution.”

In October 2012, the institute published Eagle Ford Shale Impact for Counties with Active Drilling and its Workforce Analysis for the Eagle Ford Shale. The pair of studies examined economic indicators resulting from the Eagle Ford oil and gas play.

In July 2012, the institute released its Strategic Housing Analysis in partnership with the UTSA College of Architecture and UTSA Center for Urban and Regional Planning Research. The study addressed the region’s need for affordable housing to create sustainable communities in South Texas. It also advised communities to create permanent housing, mixed-use housing, and temporary, mobile and rental units.

It is our hope that this research helps state and local officials make informed decisions as the economic growth of this region continues to expand,” said Bob McKinley, UTSA associate vice president for economic development.

By Christi FishEFS Economic Impact
Associate Director of Media Relations
University of Texas at San Antonio

Download the 2013 Economic Impact of the Eagle Ford Shale: CLICK HERE

Download the 2013 Economic Impact of the Eagle Ford Shale – Appendix: CLICK HERE

Eagle Ford Shale Economic Impact and Workforce Analysis

Economic Impact for Counties with Active Drilling

The Center for Community and Business Research at The University of Texas at San Antonio Institute for Economic Development (UTSA) performed an economic study of 14 counties in the Eagle Ford Shale area that portrays a detailed image of the challenges and opportunities emerging from drilling and production activities in South Texas. In 2011, the companies operating in the region had significant impacts in the 14-county area and in the surrounding counties.

These impacts translated into:

  • More than $19.2 billion in output
  • Approximately $10.5 billion in gross regional product
  • $211 million in local government revenues
  • $312 million in state revenues
  • 38,000 full-time jobs
  • The study projects that by the year 2021, the Eagle Ford Shale could produce close to $62.2 billion in output and up to $34 billion in gross regional products.

Workforce Analysis for the Eagle Ford Shale

The Center for Community and Business Research at The University of Texas at San Antonio Institute for Economic Development (UTSA) performed a workforce analysis for the 20 counties within Texas directly and indirectly involved in the development of the hydrocarbon producing formation known as the Eagle Ford Shale (EFS). Each of these counties have witnessed an increased supply of EFS-related jobs within certain industries and requiring specific job training.

Direct, indirect and induced economic impacts were examined for each of the counties in the 20-county region to determine workforce impact. Direct impacts primarily consist of the actual production and employment by firms operating directly in the EFS. Indirect impacts include the operational and personnel expenditure made by suppliers, or inter-industry transactions spurred by the direct economic activity. Induced impacts include income flows created when workers spend money on various goods such as food, housing, and other products or services in the counties the counties under analysis.

The development of the Eagle Ford Shale has distinct phases, during which individual industries will experience varying levels of labor demand and evolving types of labor demanded. Thus, education and training requirements for workers will need to remain flexible enough to accommodate the vacillating needs of industry. For example, during the exploration phase counties will see a rise in the need for occupations dealing with mineral leasing, site construction/management, drilling rig support, and material transport. As companies shift into the production and processing phase of operations, they require a workforce composed of business management, administrative support and the processing of gas, oil and condensates occupations.

Eagle Ford Shale Housing Report

Affordability is Eagle Ford Shale’s Most Prominent Housing Need

UTSA PROJECTS POPULATION OF SIX WESTERN COUNTIES WILL GROW TO 86,297 BY 2025

Young families with school-aged children will continue to account for a significant portion of newcomers to six Eagle Ford Shale counties, according to a study released today by the Small Business Development Center (SBDC) at The University of Texas at San Antonio (UTSA) Institute for Economic Development. Researchers Azza Kamal and Richard Tangum in the UTSA College of Architecture and Center for Urban and Regional Planning Research completed the Eagle Ford Shale Strategic Housing Analysis, which examines the state of housing in Dimmit, Frio, La Salle, Maverick, Webb and Zavala Counties.

Download the study at http://bit.ly/EFS-Housing.

“The Eagle Ford Shale oil and gas play is one of the most significant oil and gas finds in Texas history, and it has attracted an influx of transient and permanent workers from across Texas and the nation,” said Gilbert Gonzalez, SBDC director. “As we look 10 to 15 years into the future, it is clear that housing stock, public service, infrastructure and public utilities will need to be improved and expanded to accommodate the influx of new residents.”

The study concludes:

  • From 2000 to 2010, the population in the six-county region grew by 65,958 people, and housing grew by 21,805 units.
  • The housing occupancy rate hovered around 89 percent in 2000 and 2010, suggesting that the population and housing growth in the six-county region increased proportionally.
  • The median household income in the six-county region, which ranges from $21,707 to $36,684, is sharply lower than the median income in Texas and the nation. (U.S. Census 2010)
  • Housing units in the area need to include a flexible design approach that can adapt to changes in demographics after the extraction activities of oil and gas has ended.
  • Vacant housing units in all shale counties need to be further analyzed because they offer strong potential if resources can be allocated for rehabilitation and home-repair programs.

UTSA researchers suggest that new permanent housing in the shale region should include a combination of detached single-family units and attached multi-family units. Mixed-use development is highly desired in the large communities. Moreover, the optimal placement for new residential developments is within 15.5 miles driving distance to work sites in the six-county region studied. Strategic locations for new developments include Carrizo Springs (Dimmit County), Crystal City (Zavala County), Dilley and Pearsall (Frio County), Cotulla (La Salle County) and Laredo (Webb County).

The study also says affordable temporary, mobile and rental housing units are needed to accommodate the region’s newcomers. Approximately 77.5 percent of the hotels studied were 90 percent booked by people planning to stay for 30 or more days. Researchers found this trend causes an economic burden for those communities because those long-term guests are not required to pay the Hotel Occupancy Tax.

“Affordability and sustainability of housing solutions are the most important lessons uncovered by this study,” said Kamal, the study’s principal investigator. “Policy leaders need to keep housing prices at rates that are affordable for local residents and the newcomers to maintain a positive quality of life for everyone living in the shale region.”

The Eagle Ford Shale is a 50 mile-wide by 400 mile-long formation that runs from the southern portion of Texas to the east. The formation produces natural gas, condensate, oil, and natural gas liquids, with margins more favorable than other shale plays. Last year, the 20-county region generated more than $25 billion in revenue for South Texas, according to a study released in May 2012 by the Center for Community and Business Research at the UTSA Institute for Economic Development.

Written by Christi Fish
Associate Director of Media Relations, The University of Texas at San Antonio

Eagle Ford Shale Generated More Than $25 Billion in Revenue for South Texas in 2011

UTSA PROJECTS THE SHALE TO CREATE 117,000 JOBS BY 2021 (Download the full study)

Development of oil and natural gas in the Eagle Ford Shale contributed $25 billion in total economic output to the region in 2011, 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 (UTSA).

“The Eagle Ford Shale has proven to be one of the most important economic engines in the state,” said Dr. Thomas Tunstall, director of the UTSA Center for Community & Business Research, and the study’s principal investigator. “In 2011 alone, the play generated over $25 billion in revenue, supported 47,000 full-time jobs in the area, and provided $257 million in local government revenue.”

The study also concluded that in 2011 shale development:

    • Paid $3.1 billion in salaries and benefits to workers;
    • Provided more than $12.6 billion in gross regional product;
    • Added more than $358 million in state revenues, including $120.4 million in severance taxes;
    • And spurred a triple-digit sales tax revenue increase in various local counties.

“We view the Eagle Ford activity as an economic opportunity of a lifetime,” said Mario Hernandez, president of the San Antonio Economic Development Foundation. “The key goal is the increase in investment and jobs. And if the communities will partner with the private companies that are creating these jobs, it can be a win-win for everybody.”

The increased revenue from the Eagle Ford Shale is rebuilding local communities. New schools and new hospitals are being built, and new training programs have been launched to maximize hiring from the local workforce. The study projects the creation of approximately 117,000 full-time jobs by 2021.

“The residents and local leadership of South Texas have taken a proactive and collaborative approach to this new economic opportunity, which we hope demonstrates how communities can embrace, invest and manage this new influx of revenues to ensure long-term regional prosperity,” said Leodoro Martinez, executive director for the Middle Rio Grande Development Council and Chairman of the Eagle Ford Consortium.

“Through the Eagle Ford Consortium, Eagle Ford Task Force and other community-industry collaborations, Eagle Ford leaders and residents are working together to develop training programs, enhance local employment opportunities, and forge solutions to community issues that maximize the benefits and manage the effects from increased development activity.”

The Eagle Ford Shale is a 50 mile-wide by 400 mile-long formation that runs from the southern portion of Texas to the east. The formation produces natural gas, condensate, oil, and natural gas liquids, with margins more favorable than other shale plays. The study assessed the economic impact of the Eagle Ford Shale on the 14 counties currently producing oil and natural gas from the formation, as well as the six surrounding counties indirectly involved in its development.

Boeing San Antonio Impact Report

The Boeing Company in San Antonio continues to be a major contributor to the Texas economy with a $415.5 million total economic impact in 2009 when the new commercial activities are added, according to a new study released today by the University of Texas at San Antonio’s Center for Community and Business Research.

Download full report here

Download executive summary here

San Antonio Missions Impact Report

The missions of San Antonio play an important part in defining the city’s culture. Their presence also helps drive the city’s hospitality and tourism industry. In 2009, over 1.7 million people visited Missions Concepción, San José, San Juan, and Espada in San Antonio. Collectively, these missions and associated features—including acequias (irrigation canals), labores (farm lands), dam and aqueduct, and the single remaining rancho (mission ranch) —comprise the San Antonio Missions National Historical Park. In 2009, park visitors, along with staffing, construction and maintenance activities, and other aspects of park operations, contributed nearly $98.8 million to the local economy and sustained 1,116 jobs in the region.

Download the Report here.

Economic Impact of the Eagle Ford Shale – 2011

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.”

Download the Report

US CAIP

CCBR, in conjunction with the Rural Business Program has been selected by the North American Development Bank’s U.S. Community Adjustment and Investment Program to develop strategies for assisting community’s negatively impacted by foreign trade.

Rural Business Program

CCBR has partnered with the South-West Texas SBDC Border Network’s Rural Business Program and the UTSA College of Architecture to prepare economic base studies and community plans for the communities of Encinal, Port Isabel, Pecos and Zapata. “This is an exciting opportunity to provide these community leaders with key economic development tools that they will be able to use in planning their community’s future,” said Dominique Halaby, CCBR Director. Each project is expected to be released by the end of the summer 2010.

Texas Small Business Economic Impact

To assist the State of Texas in understanding the economic impact of Texas businesses with fewer than 100 employees, the Office of the Governor contracted with CCBR to prepare Little Companies, Big Impact: The Economic Impact of Texas Businesses with Fewer Than 100 Employees.

This report focuses on several areas, from understanding the relative importance of high-growth clusters in Texas to determining the import role small businesses play in the state’s economy. Central to our report is the quantifying of the total impact small businesses with fewer than 100 employees have on the Texas economy. We estimate the 377,374 firms which comprise this category to have a total production impact of over $915 billion. In addition, a series of maps presented that depict the relative importance of various industries by Council of Government area. Also discussed is the relationship between a counties’ median household income and the presence of various small business establishments.

Understanding the relationship between income distribution, business concentration, and economic contribution is a key element in developing a strategy to promote small business creation and foster economic growth.

Executive Summary

Technical Report #1

Technical Report #2