Eagle Ford area expected to benefit from nearly $30 billion in capital expenditures in 2013
December 12, 2012
The Eagle Ford Shale oil and gas play is expected to continue to have a significant economic impact on roughly two-dozen South Texas counties.
Wood Mackenzie, a global research firm specializing in energy and metals, has issued new analysis which indicates that companies will invest $28 billion in capitalexpenditures in the Eagle Ford in 2013.
Callan McMahon, a research analyst for Wood Mackenzie, says the Eagle Ford activity is “now in full swing.” And the value which has been extracted from the play continues to “exceed expectations.”
EOG Resources, BHP Billiton andConocoPhillips are among the largest companies participating in the Eagle Ford.
“In terms of overall investment, from 2012 through 2015, Wood Mackenzie expects capital expenditure in the Eagle Ford to surpass the projected (capital expenditures) of the entire Kashagan project in Kazakhstan, the world’s most expensive standalone energy project,” McMahon explains.
According to Wood Mackenzie, the projected capital investment for theKashagan project is expected to total $116 billion.
“The pace of growth in the Eagle Ford Shale shows no sign of slowing down, and our analysis indicates that Gonzalez, DeWitt and Karnes counties have established themselves as the sweet spots of the play … ,” McMahon adds.
San Antonio is benefitting from the Eagle Ford activity because its proximity to the area impacted. A number of companies have developed headquarters operations in the area to support that drilling activity.