Carpe Diem

Amazing Texas oil facts from the Eagle Ford Shale and Permian Basin areas — teenagers are making $75,000

Facts and anecdotes about the oil boom in Texas, especially in the Eagle Ford Shale and Permian Basin areas, from this Bloomberg article:

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.”

5. Boomtown anecdotes among Midland locals are as common as one-liners in a stand-up routine: The granddaughter who can’t get married in town because there aren’t available hotel rooms for guests; teenagers who earn $75,000 driving trucks the day they graduate from high school; the Cracker Barrel that couldn’t open until three months after the building was finished because of a lack of workers.

6. On Big Spring Street in Midland, there are few fast-food restaurants or local banks without a “Now Hiring” sign, and a one-night stay at the Fairfield Inn in Midland costs $300.

15 thoughts on “Amazing Texas oil facts from the Eagle Ford Shale and Permian Basin areas — teenagers are making $75,000

  1. I feel kind of sad for the teenagers making $75,000 – once this gravy train runs out of steam they will have quite an adjustment to make – schlepping burgers at McDonalds for minimum wage. Ouch! Enjoy it now boys!

    • If you grew up in Midland you understand this well. The early 1980s were another boom time, at that time Midland had the Rolls Royce dealer with the biggest sales in the US. Then the price crashed, Midland (and Odessa next door) went into a severe slump. For a while there rush hour was non existent, and jobs were scare. Folks living in Midland understand booms and busts, because they have been thru so many of them.

      • Midland residents know that, but do teenagers?

        I’m not trying to belittle your point, just pointing out that teens tend to be short-sighted.

        • jon-

          if you grew up around it and saw parents go through one or at least heard of it, then yes, i could see how they would understand.

          regions have a sort of institutional memory around things like this.

          some may pree all their cash on cars and booze, but others will save and perhaps start a biz or have plenty of cash to move away later.

          bottom line to moe’s point, i would not feel sad for these guys. far better to have this shot even if only for a while than not to.

        • Generally generational memory tends to go 3 generations, in that you are around to hear your grandparents tell their stories, but not your great grandparents. Stories told by folks who actually experienced the events tend to be more likely to be recalled than second hand stories. If you are turning 21 you would have been born during the trough in Midland after the crash of 1986.

        • To boot to get the driving job you must have a commercial drivers license and be 21 to get that. So teenagers need not apply.

          • Actually, you DON’T need to have a CDL as long as you pull a trailer 35 ft or less. A LOT of hotshot drivers run rigs that meet those specs.

  2. Kids all over the USA make more than $75,000 dealing drugs. Anybody see an end to that gravy train? Anybody see those kids schlepping burgers at McDonalds?

  3. “teenagers who earn $75,000 driving trucks the day they graduate from high school;”

    If kids are seeing other kids making $6250 a month then the drop-out rate could be quite high.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>