Bridge between Industry, Communities and Business Opportunities. Rio Grande Valley Partnership

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1 Bridge between Industry, Communities and Business Opportunities Rio Grande Valley Partnership

2 South Texas Energy & Economic Roundtable Trade Association connecting the oil and natural gas industry to South Texas communities Founding Members 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

3 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

4 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

5 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. Source: Institute for Economic Development Center for Community and Business Research The University of Texas At San Antonio Economic Impact Study 5

6 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.) Source: Institute for Economic Development Center for Community and Business Research The University of Texas At San Antonio Economic Impact Study 6

7 The Economic Future of the Eagle Ford Shale Region By 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 Photo Source: NASA s Earth at Night series ~$4.1 billion added in state revenues $4.07 billion provided to local government revenues Source: Institute for Economic Development Center for Community and Business Research The University of Texas At San Antonio Economic Impact Study 7

8 Eagle Ford Data & Stats 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

9 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. Source: La Colinas, Silverback Homes, Kenedy, Texas Improvements and expansions are needed to accommodate influx of new residents, including housing stock. Source: Institute for Economic Development Center for Community and Business Research The University of Texas At San Antonio Housing Analysis Study 9

10 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

11 Workforce Trends in The Eagle Ford Shale Region Oil & Gas Occupations Transportation Accounting IT Measurements Instrumentation OIL AND GAS COMPANIES LOOK TO HIRE MORE LOCAL TALENT; WE NEED TO TRAIN AND EDUCATE OUR FUTURE WORKFORCE IN SOUTH TEXAS. 11

12 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

13 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&M International University in Laredo 13

14 Community Engagement *Via ANSI/API Community Engagement Guidelines 14

15 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

16 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, winners include: Energy Waste, Halliburton, Primera Energy, Dynamic Industries, Caesar Kleberg Wildlife Research Institute at Texas A&M University Kingsville, and HOLT CAT. 16

17 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 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 17

18 Seven Layers of Protection 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/

19 Hydraulic Fracturing & Horizontal Drilling 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. 19

20 Reducing Surface Footprint 20

21 Flaring Facts 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 21

22 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

23 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

24 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 employees 24

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