CORPUS CHRISTI — Q: Will the Eagle Ford Shale oil and gas development help small businesses in South Texas?
A: Yes. It's having a major impact on small business opportunities in and around the 24 counties that sit atop the formation. The total impact is expected to be $13.9 billion this year and increase to $48 billion in 2020. By comparison, the annual GDP of the three county Corpus Christi metropolitan area is about $15 billion. Recovery of oil and gas from tight shale became possible about five years ago with the development of horizontal drilling and fracturing technology. Fracturing of the rock holding the oil and gas with high pressure water and sand releases it to flow to the surface. The Eagle Ford formation is about 50 miles wide and 400 miles long running roughly Northeast from Laredo.
There are several tiers to the economic impact. Tier one is the drilling companies, tank and pipeline builders and companies that own and operate the wells, tanks and pipelines. Those typically are large companies not small ones. Tier two is the small companies that provide goods, supplies and services to the tier one companies. Those include earth moving to prepare well and construction sites, hauling of water, sand, chemicals, equipment and materials and supplies, repairing motors, pumps, compressors and other equipment, crane services, self employed rig welders, electricians, pipe fitters, boilermakers, riggers and instrument technicians.
Source: Caller.com
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