Forecasts for Texas to see increased oil and gas frac’ing in the Eagle Ford Shale Region is a credit positive for a total of 21 counties, cities and school districts, Moody’s Investors Service said on Tuesday.
According to the university study, “…oil production in 2011 increased nearly seven times over 2010 production and gas production more than doubled.”
Moody’s, which left general obligation bond ratings unchanged for the 21 counties, cities, and school districts, reports a sharp increase in revenues.
“Sales tax growth for rated issuers in the 14-county production region has outpaced the total sales tax growth for all cities across Texas,” the report says.
The Moody’s report is based on a May study by the University of Texas at San Antonio’s Institute for Economic Development, which estimated that the rise in frac’ing will create 38,000 full-time jobs, $211 million in local government revenues, and $312 million in state revenues for the 14 counties that are directly affected.