Posted on 03/15/2013 8:07:40 AM PDT by Dysart
Facts and anecdotes about the oil boom in Texas, especially in the Eagle Ford Shale and Permian Basin areas...
1. The first Eagle Ford well was drilled in 2008 when 26 drilling permits were issued and the area produced only 358 barrels per day that first year. In 2012, Eagle Ford oil output rose to more than 352,000 barrels a day, as the number of drilling permits surged to 4,143.
2. Eagle Ford Shale could provide as many as 900,000 barrels per day by 2016. The Permian Basin, deep in west Texas, may reach 1 million barrels daily. By 2020, Texas’ crude output may exceed the 3.45 million barrels a day seen in 1972 if prices stay high enough to make drilling economical, he said.
3. A study from the Dallas Fed conservatively estimated that mineral rights are being assigned in the Eagle Ford Shale for $1,500 per acre over a 5-million-acre territory, yielding $7.5 billion in compensation since 2007.
4. The city of Midland in the Permian basin was the fastest-growing metropolitan area in the country during the last year, posting a 4.6% gain to 151,662 people (see yesterday’s report from the Census Bureau). Soaring demand for energy workers there has driven up wages, and not just for jobs in the oil and gas fields. “You can make $15 an hour washing dishes at Wendy’s,” said Karl Gulick, a Midland banker. “If you can pass a drug test and get a commercial driver’s license, you can get $80,000 in one phone call.”
(Excerpt) Read more at aei-ideas.org ...
Bookmarked.
There is an interesting comment (the only one) there. Paints a different picture.
fer later
Ping for later
no comment there or on the original article now
What was the comment? It appears to have been removed.
My guess is that you might make that sort of money, but there is no affordable housing available.
Does that sound about right Oatka?
My family has been in the oil business for 100 yrs and we have seen the booms come and go, so I predict that this one will also pass. I would suggest that those making the big bucks put something back for hard times. As my dad used to sat, “it is either chicken or feathers. “
I guess so, but why don't they buy an RV or truck 'n trailer? maybe the authorities could provide parking and porta potties for a nominal fee. Just have to make sure the place doesn't deteriorate.
First the oil shows up
then the oil workers
then the hookers
then the drug dealers
Long time residents that are smart will sell when the chance to make big bucks shows up in the beginning, then find a decent place to live elsewhere, because when the oil money floods in = the cost of everything goes thru the roof.
I saw that comment. I don’t follow the Permian basin play clsoely, so I can’t speak to the IP, decline rates, etc, but his point seems to be that the boom times won’t last. Sure, the production will ebb, and it’s possible that it could be sooner than projected, but either way it’s an economic miracle for the moment. Numerous other highly productive formations await discovery and exploitation. Those who develop their skills and build their reputation in O&G will be able to easily transfer to the hot spots.
Yeah, I thought he was being too harsh and wondered if he had an agenda.
That’s the way I would play it.
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