“This is basically a place to sleep. People get out of work, sleep, get up and do the same thing all over again.”
Samantha Mirelez, an assistant manager at the Lonesome Creek RV Resort in Karnes County, Texas, explained the nature of the RV resort where she works.
It’s not hard to understand why this is the way things are.
In the wake of the United States’ shale oil renaissance, the trailer park where she used to live has become a makeshift homestead for the thousands of oil workers who’ve flocked to Karnes County in search of wealth from one of the hottest shale plays in the country.
The only activity in the oil-minded village comes early in the morning and later at night, when the rig workers move to and from drill sites.
You see, Karnes, just south of San Antonio, is at the heart of the Eagle Ford Shale. The Lonesome Creek RV Resort isn’t an anomaly, either — it is one of many that dot the outskirts of south Texas’s sprawling rural oil country.
Texas Cash Windfall
According to Samantha, about 200 people live in the small trailer-city, and most of them work on the oil rigs.
But like I said before, this is just one of many trailer parks to be found all over the Eagle Ford’s 25 counties.
And even though the oil workers who live there spend most of their time busting their humps, they make — and spend — quite a lot of money.
In fact, this past Monday, a group of Texas state lawmakers held a hearing to focus on how the newly discovered oil and gas in places like the Eagle Ford and Permian Basin has been altering the state and its economy.
Texas is now equipped with a multi-billion dollar wealth of new taxes that will be deployed on issues like crumbling roads and water shortages.
According to data presented to the lawmakers by the Texas Oil & Gas Association, the industry now employs 400,000 people with an average salary of $120,000, bringing the total wages paid out by the industry to just under $50 billion
That doesn’t even count the $11 billion paid out in royalties to families in the Eagle Ford and Permian. In fact, I have some great information about these royalties that can actually help your portfolio.
But first, let me explain why this isn’t going to slow down anytime soon.
Growth at an Astounding Clip
As you can see in the graphic below, oil production in the Eagle Ford is moving ahead at an unbelievable pace…
According to the EIA, the Eagle Ford is close to breaching 1.5 million barrels of oil per day, and it’s going to happen in September — perhaps earlier.
So it makes sense that production will to continue to soar.
This means more drilling rigs and more worker in the prolific territory.
In fact, according to an analysis of BLS data by Rigzone, oil and gas companies added over 10,500 new jobs in the second quarter of 2014. Of those, 4,000 were in Texas.
And with all of the new workers moving in and all of the new rigs being set up, you can bet more money is going to be spent, too.
According to Wood Mackenzie, development spending in the energy industry is going to be between $620 and $630 billion this year, with a quarter of that coming from the U.S.
And tight oil, like the oil found in the Bakken, Permian, and, of course, the Eagle Ford, will account for $72 billion of that spending.
And as you see above, this spending has been increasing — and will continue to do so — alongside U.S. oil production out of tight formations.
It’s how the Eagle Ford is on pace to reach 2 million barrels per day by 2020 while propelling the U.S. to the head of the pack in global oil production numbers.
So with all of the turmoil in the Middle East and the ever-cooling relationship between the U.S. and Russia, it seems our oil will give us a newfound power in global politics not seen since the 1960s.
But I digress…
How to Bank Your Eagle Ford Riches Now
You can safely assume that the record oil production, record spending, and newfound wealth here in the U.S. energy sector is going to pay off big for investors.
Of course, you may have missed the early round of gains in the Bakken and Eagle Ford, like those from Pioneer Natural Resources:
But there are still some gems out there if you know where to look.
As I mentioned earlier, I’ve uncovered a way for you to benefit from all the new wealth being doled out to families and oil workers in the Eagle Ford… and you don’t even have to live there.
In fact, the plays I’ve found could hand you a solid $86,715 or more if you take the time — right now — to invest in them.
You see, there are three companies in the region trading well under the value of their proved reserves. But once everyone else catches wind of their production numbers, it won’t be long before they double or even triple.
So if you want to get involved our energy renaissance before it’s too late, there’s no better place to start than the Eagle Ford.
Until next time,
A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.
For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.
Keith’s keen trading acumen and investment research also extend all the way into the complex biotech sector, where he and his readers take advantage of the newest and most groundbreaking medical therapies being developed by nearly 1,000 biotech companies. His network includes hundreds of experts, from M.D.s and Ph.D.s to lab scientists grinding out the latest medical technology and treatments. You can join his vast investment community and target the most profitable biotech stocks in Keith’s Topline Trader advisory newsletter.