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.