Wednesday, May 30, 2012

Oil Prosperity Update for Eagle Ford Texas

1. Fuel Fix -- "Robust drilling activity in the Eagle Ford Shale is rescuing the state’s lodging sector. San Antonio-based Source Strategies says in its newest Hotel Brand Report that hotels in the counties with the most oil-and-gas production were responsible for 75% of the $151.3 million in additional revenues hotels produced statewide between the first quarter 2011 and the first quarter this year. That occurred even though those oil-and-gas-rich areas account for only 38% of the 395,100 hotel rooms in Texas. The rest of the hotel sector recorded insignificant revenue gains of 3.2%.

“The economic impact of oil and gas is huge,” said Bruce Walker, president of Source Strategies."

2.  — "The sales tax revenue bump generated by Eagle Ford Shale production could have a positive effect on local governments’ creditworthiness, according to analysis by a noted rating agency.

A study by Moody’s Investor Service showed increased revenues could have a “credit positive” effect on bond ratings for 61 entities Moody’s rates across a 20-county region of South Texas impacted by Eagle Ford development."

MP: Welcome to the new Bakken.....


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