Bridge between Industry, Communities and Business ... · jobs –More than $42.8 billion in gross regional product –More than $2.2 billion to local governments (schools, hospitals,

Rio Grande Valley Partnership

Bridge between Industry, Communities and Business Opportunities

© 2013 STEER. All rights reserved.

South Texas Energy & Economic

Roundtable

• Trade Association connecting the

oil and natural gas industry to South

Texas communities

• Represented by 14 of the largest

operators in the Eagle Ford Shale

region

• Mission to facilitate and coordinate

communication, education and

public advocacy surrounding the

production of energy resources in

South Texas

2

Founding Members


South Texas Energy & Economic

Roundtable

• Supporting Members

– Baker Hughes - Schlumberger

– Halliburton - Weatherford

• Resource Members

– AEP Texas – Aggreko

– Cheniere Energy – DMC Charter Chambers Inc.

– Fishbone Safety Solutions – HOLT CAT

– Leidos – Port Corpus Christi

– Port of Victoria – S&B Infrastructure

– Union Pacific

• Associate Member

– Victoria Economic Development Corporation

3


STEER’s Committee Structure

• Committees

– Stakeholder Relation• Education

• Road Safety

• Environmental enhancement

– Communications• Real-time media response

• Education

• Social media

– HSE (Health, Safety and Environment)• Environmental

• Emissions

• Emergency Response

– Water Sustainability Committee• Recycling

• Studies on water use in the EFS

4


The Eagle Ford Shale

• Named after Eagle Ford, Texas,

the town where the shale

outcrops can be found in clay

form on the earth’s surface.

• Made up of sedimentary rock

that contains oil and natural gas.

• Extends approximately 50 miles

wide, 400 miles long.

• Primary15-county region

includes: Atascosa, Bee, DeWitt,

Dimmit, Frio, Gonzales, Karnes,

La Salle, Lavaca, Live Oak,

Maverick, McMullen, Webb,

Wilson, and Zavala.5

Source: Institute for Economic Development Center for Community and Business

Research – The University of Texas At San Antonio - 2012 Economic Impact Study


The Impact of Eagle Ford Shale

• Largest single oil and gas

development in the world based

on capital expenditures:

– 2013 economic impact was over

$87 billion - more than double that

of 2011

– Supported almost 155,000 full-time

jobs

– More than $42.8 billion in gross

regional product

– More than $2.2 billion to local governments (schools, hospitals,

emergency services, etc.)

6




The Economic Future of

the Eagle Ford Shale RegionBy 2023, moderate estimates

project:

$137.4 billion in total economic

output

Over 196,000 full-time jobs

$12 billion paid in salaries and

benefits for workers

~$72.8 billion contributed in gross

regional product

~$4.1 billion added in state revenues

$4.07 billion provided to local

government revenues7

Photo Source: NASA’s

“Earth at Night” series




Eagle Ford Data & Stats

8

Source: Railroad Commission of Texas

• YTD 2014:: 2,364 wells spud (Baker Hughes)

• 271 rig count

• EIA estimates average

Eagle Ford EUR at

168,000 bbl/well• EIA: Eagle Ford

producing1.5 million

daily barrels (oil &

condensate)

• Wood Mackenzie

predicts production

will reach 2 mill b/d of

oil and condensate by

2020


Development Opportunities

in The Eagle Ford Shale Region Increased demand of temporary or permanent

housing

Hotels

Apartment complexes

Recreational vehicle (RV) parks

Subdivisions within the Eagle Ford Shale: Las

Colinas Development by Silverback Homes

A report by the University of Texas at San

Antonio in 2012 forecasts 24 percent increase in

population in the Eagle Ford region over the

next 15 years.

Improvements and expansions are needed to

accommodate influx of new residents, including

housing stock.

9


Research – The University of Texas At San Antonio – Housing Analysis Study

Source: La Colinas, Silverback Homes, Kenedy, Texas


Opportunities continued Retail: Clothing stores, grocery stores,

local convenience stores, restaurants

and more.

Suppliers

Mediccal

Mobile Services: Food trucks, mobile

barbers/salons, RV parks and more.

Schools

Quality of life amenities: New housing

development including multi-family

homes from Las Colinas Development.

Rail: New highways, intersections,

improved roads and more.

10


Workforce Trends

in The Eagle Ford Shale Region

Oil & Gas Occupations

Transportation

Accounting

IT

Measurements

Instrumentation

11

OIL AND GAS COMPANIES LOOK TO

HIRE MORE LOCAL TALENT; WE NEED

TO TRAIN AND EDUCATE OUR FUTURE

WORKFORCE IN SOUTH TEXAS.


Education opportunities

in The Eagle Ford Shale Region

• Palo Alto College (San Antonio) developed a unique program

called the Eagle Ford Boot Camp, geared solely toward

preparing our workforce to capitalize on the human resource needs in the oil and gas industry.

• Colleges and universities offering various training services and

degrees that will develop and produce oil & gas professionals

in South Texas.

– Laredo Community College: degrees and certifications in

electrical technology, diesel engine mechanics, and an oil

& gas industry specialization

– Del Mar College in Corpus Christi: industry training in

AutoCad, Electrical, Hazmat, Industrial & Technical Math,

Mechanical, Plumbing, Safety, Surveying, and

Transportation

12


Education opportunities

continued

– Coastal Bend College: residents of Beeville, Pleasanton,

Alice and Kingsville various petroleum industry training

courses that span from CDL certification to oil spill response

– Victoria College offers associate degrees and technical certifications in business and welding

– Southwest Texas Junior College in Uvalde offers associate

degrees and technical certifications in diesel technology,

welding, and more

– Other colleges include Sul Ross Rio

Grande College and Texas A&MInternational University in Laredo

13


Community Engagement

14*Via ANSI/API Community Engagement Guidelines


South Texas Engagement

• Supporting education and outreach initiatives in South

Texas; Media relations

• Consulting with local educators to develop materials,

programs,

curriculum, etc.

• Educational institutions and

programs

– industry education and safety,

workforce development

• Public Forums

15


STEER Programs

• Eagle Ford Excellence Awards

– Awards to showcase companies

making a difference in the

community, in safety and

environmental stewardship

– Awards for 2014 include: Community

and Social Investment, Environmental

Stewardship, Safety Performance and

The STEER Impact Award.

– Deadline for entries is September 30,

2014.

– 2013 winners include: Energy Waste,

Halliburton, Primera Energy, Dynamic Industries, Caesar Kleberg Wildlife

Research Institute at Texas A&M

University Kingsville, and HOLT CAT.

16


STEER Impacts through Collaboration

• Alamo Area Council of Governments (AACOG)

Clean Air Study

• Roads: TxDOT/DPS/STEER

• UTSA Economic Impact Study

• San Antonio River Authority (SARA) on Eagle Ford

Shale Handbook

• Texas Parks & Wildlife

• Taking Care of Texas

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“Taking Care of Texas is about building on existing conservation efforts. We want Texas to be a leader in meeting the nation’s energy needs while conserving soil and habitat and boosting the economy in South Texas. ” - Laura Bush, Taking Care of Texas


Seven Layers of Protection

18

“These extraordinary

technological

achievements

enable operators to

maximize returns from

each well, which in

turn means higher

royalty payments to

mineral owners, and

higher tax revenues

for local and state

taxing authorities.”

- Horizontal Drilling: A

Technological Marvel

Ignored, Forbes, 1/28/2013


Hydraulic Fracturing &

Horizontal Drilling

19

• A proven

technology that

has been used for

more than 60

years to safely

enhance the

production

potential of oil

and natural gas

from more than1

million wells in the

United States.


Reducing Surface Footprint

20


Flaring Facts

21

• Flaring is the controlled, necessary, safe burning

of natural gas.

• Flaring safely combusts gas that cannot

otherwise be transported efficiently.

• Flaring is necessary:

– During well production testing

– For safety reasons

– When there is a lack of pipeline infrastructure

• Efficient pipeline infrastructure offers

advantages by reducing the need to flare.

– In 2013, Texas had 374,318 miles of pipeline and that

number continues to increase


TCEQ: San Antonio Summary

The study was conducted by Alamo Area Council of Governments

(AACOG) contract by the Texas Commission on Environmental

Quality (TCEQ). Data used for this project will be comprehensive

and scientific significant surveys, reports, or data that can be used

to determine emissions from oil and gas activities in the Eagle Ford.

• Although San Antonio ozone has decreased over time, there has been a

recent increase in ozone from 74 ppb in 2009 to the 2013 Design Value of

81 ppb. Preliminary 2014 design value is decreased to 78 ppb as of 9/8/2014.

• The highest ozone is measured northwest of downtown San Antonio when

winds are from the north, northeast, east, southeast, and south. EFS

activities are primarily to the south and southeast as is the predominant

wind direction during the ozone season.

• A 2013 analysis of the monitoring data from the site generally upwind of

San Antonio and downwind of the EFS indicated that ozone levels as well

as NOx levels coming into the SA area have generally have not been

any higher during the EFS development.

• An update to this evaluation is ongoing using updated data.

*Information via TCEQ and AACOG.org.

22


Water conservation

Operations and water management practices are

continually evolving and have changed

substantially over the last two years.• Most of the larger oil and gas companies have some level of recycling

and/or brackish water sourcing.

• Companies are dramatically lowing the amount of water needed in

operations

• Companies in the EFS are increasingly using more non-fresh water sources

– Brackish groundwater use is on the rise.

– Industrial or municipal wastewater: Although difficult to employ in

multi-well pad, companies will make use of municipal grey water in

some one-off wells.

• Transportation infrastructure for water (roads and pipelines) are the key to

better water management solutions. More networks of pipelines to move

water have been installed or are being planned to reduce truck traffic

and move water effectively.

23


Safety in the Eagle Ford Shale

The safety of those working and living within the

Eagle Ford Shale region is a top priority for STEER

and its members.

• STEER members have programs that

encourage a healthy work environment

• Focus on reduction of work-related injuries

• Safety in Operations

– Protecting groundwater

– Cementing

• Road safety

– Working with government officials and entities to repair roads

– Member companies have rules in place to

encourage safe driving by employees24


https://www.txdot.gov/driver/share-road/be-safe-drive-smart.html

https://www.txdot.gov/driver/share-road/be-safe-drive-smart.html


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on Twitter to stay up to date with

Eagle Ford activities!

/STEEROUNDTABLE

@STEEROUNDTABLE

www.STEER.com

Thank you

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Bridge between Industry, Communities and Business ... · jobs –More than $42.8 billion in gross regional product –More than $2.2 billion to local governments (schools, hospitals,