THE EAGLE. FORD AND FIND OUT OF FOREIGN OIL BOOM OR BUST. >> NO SURPRISE HERE. GAS PRICES
KEEP CLIMBING. EVEN RIGHT HERE
IN TEXAS. PRICES ARE REALLY
BREAKING RECORD AT ALL.
FOLLOWED THE U.S. BAN ON
RUSSIAN OIL PROMPTED BY
RUSSIA’S ATTACK ON UKRAINE.
AND SINCE THEN, CRITICS,
PUNDITS AND POLITICIANS HAVE
GONE HEAD TO HEAD OVER
SOLUTIONS. YEAH. AND ONE THAT
KEEPS BUBBLING UP.
>> DRILL MORE HERE AT HOME.
BUT INCREASING THE U.S. OIL
SUPPLY AND DECREASING WHAT IT
COSTS YOU TO FILL UP YOUR GAS
TANK. FAR MORE COMPLICATED IN
THIS WEEK’S KSAT EXPLAINS.
MYRA ARTHUR AND DAVID SEARS
DIVE INTO WHAT REALLY
DETERMINES GAS PRICES. THEY
START THINGS OFF IN A PART OF
SOUTH TEXAS THAT WAS ONCE AT
THE HEART OF A DRILLING BOOM.
♪
>> IN ROUGHLY 10 YEARS SINCE
LIKE TOOK ON A RECORD-SETTING
PACE HERE IN TILDEN, A SMALL
TOWN, 70 MILES SOUTH OF SAN
ANTONIO. IT WAS LIKE THE WILD
WEST. SAME LIKE IN THE
BEGINNING. THE COLLIN COUNTY
JUDGE JAMES STEELE TOOK OFFICE
IN 2011 RIGHT AT THE START OF
THE SURGE IN DRILLING IN THE
EAGLE, FORD SHALE, THE EAGLE
FORD SPANS 20,000 SQUARE MILES
ACROSS. 26 TEXAS COUNTIES.
>> FROM THE TEXAS MEXICO BORDER
THROUGH COUNTIES EAST OF WACO,
FROM 2010 TO 2015 MCMULLEN
COUNTY SAW ITS TAXABLE SALES
INCREASED BY 53% MORE THAN
DOUBLE ANY OTHER COUNTY IN THE
EAGLE. FORD ACTIVITY WAS WAS
INSTANT LEFT. THE PEOPLE
TRAVELING TO AND FROM BIGGER
COMMUNITIES TO
>> STAY IN HOTELS. EVERY
BUSINESS, EVERY EVERYTHING WAS
COMPLETELY FULL. THAT JOE
MARKET. WE CARRY EVERYTHING
KING SO YOU CAN GET A FRESH
SANDWICHES WELL, IT WILL, YOU
KNOW, REPAIR KIT, A GENERAL
STORE THAT’S BEEN FAMILY OWNED
FOR OVER 100 YEARS.
>> BUT NOT EVEN ALL THAT
EXPERIENCE COULD HAVE PREDICTED
THE DAYS OF THE EAGLE FORD
BOOM. IT WAS EXCITING AND SCARY
BOTH NOT KNOWING WHAT WAS TO
OUR TOWN CHANGED TREMENDOUSLY
WITH THE HOTEL NOW WHO WOULD
HAVE THOUGHT AMERICA WOULD HAVE
A HOTEL? WE HAVE A PILOT.
>> I MEAN, AND WE HAVE A LITTLE
ARROW JUST ACROSS THE STREET
FROM THE PILOT. WE HAVE, YOU
KNOW, TO STOP LIGHTS NOW THE
ADDITIONAL FUNDING FROM THE
DRILLING IN THE EAGLE, FORD
ALLOWING THE BALL AND CALIDAD A
24 HOUR SHERIFF’S DEPARTMENT.
FOR THE FIRST TIME WE’VE BEEN
ABLE TO.
>> I HAVE ALMOST EVERY ROAD IN
THE COUNTY WAS WORKING ON THE
STREET AND DRAINAGE PROJECT.
NOW DURING THE HEIGHT OF THE
BOOM, HERRON MCMULLEN COUNTY,
THEY HAD 32 RIGS GOING. NOW
THEY’RE DOWN TO 3. AND YOU LOOK
AT ONE OF THEM. AND THE COUNTY
JUDGE DID SAY THAT THEY’RE
READY FOR A RESURGENCE IN THIS
ACTIVITY. SHOULD THAT HAPPEN?
BUT THAT IS NOT A QUICK ANSWER
TO THESE HIGH GAS PRICES.
SO WHEN THE PRICE OF OF OIL
GOES UP, THE PRICE OF
EVERYTHING GOES UP AND THAT’S
SOMETHING WE’RE ALL
EXPERIENCING. WE’RE NOT JUST
PAYING MORE FOR GAS, BUT FOR
EVERYTHING.
>> FROM MILK TO ORANGE JUICE,
TO MEDICATIONS, EVEN THE PRICE
OF CLOTHES AND SHOES IS HIGHER.
PART OF THE REASON OIL IS A
HUGE PART OF OUR EVERYDAY
LIVES. THAT’S PART OF THE
REASON WHY ENERGY INFLATION IS
SO CONCERNING BECAUSE WE USE
OIL NOT JUST IN GASOLINE, BUT
IN HOUSEHOLD GOODS. IN FOOD
PRODUCTION. I’M JUST REALLY,
REALLY ACROSS OUR ECONOMY AND
ACROSS OUR SO MANY THINGS ARE
MADE FROM OIL. THE PRICE HIKE
FINGER INEVITABLY GETS POINTED
AT OIL COMPANIES, THE PRICE
THAT YOU’RE SEEING AT THE PUMP.
>> IS A REFLECTION OF
THE.
>> IN TYPICALLY INDEPENDENT
BUSINESS OWNER TRYING TO GET
A RETURN ON THE COST OF
PURCHASING FUEL THAT THEY’VE
MADE, ACCORDING TO THE AMERICAN
PETROLEUM INSTITUTE, NEARLY
99% OF GAS STATIONS ARE
INDEPENDENTLY OWNED. ALL THE
ONE COMPANY MAY OWNS SEVERAL
STATIONS. THE OWNERS SIGNED A
LICENSING AGREEMENT WITH OIL
COMPANIES TO PUT THEIR NAME
ON THE MARQUEE LIKE ANY OTHER
BUSINESS. THE STATION OWNER HAS
TO BUY THE FUEL ALONG WITH ALL
THE OTHER ITEMS THEY SELL.
>> PLUS, THERE ARE COSTS LIKE
LABOR AND MAINTENANCE ALL
ROLLED INTO THE PRICE OF DOING
BUSINESS. THEY RECOUP SOME OF
THOSE EXPENSES BY SETTING A
PRICE OF GAS. AND THAT CREATES
COMPETITION WITH THE OTHER GUY
ON THE CORNER. PRICES ARE
DRIVEN BY MARKET
FUNDAMENTALS.
>> BY SUPPLY AND DEMAND
PRINCIPLES AND ALSO BY
COMPETITIVE, THE COMPETITIVE
MARKETPLACE AND THE MARKET FOR
OIL IS A GLOBAL ONE. WHAT
HAPPENS TO THE SUPPLY AND
PRICES AROUND THE WORLD HAS AN
IMPACT ON US HERE AT HOME.
WE’RE BANNING ALL RUSSIAN OIL
AND GAS ENERGY.
>> THAT MEANS RUSSIAN WILL NO
LONGER BE ACCEPTABLE. U.S.
PORTS. IN MARCH, PRESIDENT
BIDEN ANNOUNCED THE U.S. WOULD
BAN OIL IMPORTS FROM RUSSIA
AFTER THE COUNTRY WAGE WAR IN
NEIGHBORING UKRAINE. AFTER
THAT, WE SAW PRICES START TO
SHOOT UP. BUT THAT PRICE I
WASN’T BECAUSE THE BAN ON
RUSSIAN OIL DRASTICALLY LOWER
U.S. OIL SUPPLY. THE U.S. WAS
ONLY IMPORTING ABOUT 500,000
BARRELS OF RUSSIAN OIL A DAY,
JUST A FRACTION OF WHAT THE
U.S. CONSUMES PER DAY, WHICH IS
ABOUT 21 MILLION BARRELS OF
OIL, ACCORDING TO THE AMERICAN
FUEL AND PETROCHEMICAL
MANUFACTURERS, ONLY ABOUT ONE
PERCENT OF ALL REFINE CRUDE OIL
COMES FROM RUSSIA. IT’S THE
FACT THAT ON THE GLOBAL
MARKETPLACE, RUSSIA WAS SUCH
A LARGE PRODUCER OF OIL.
IT PRODUCED MORE THAN
10 MILLION BARRELS PER DAY.
3RD LARGEST PRODUCER OF OIL.
FIRST, THE LARGEST EXPORTER OF
OIL IN THE WORLD PRE INVASION.
SO A DROP IN OIL SUPPLIES IN
EUROPE, FOR EXAMPLE, A PLACE
THAT RELIES MUCH MORE HEAVILY
ON RUSSIAN IMPORTANT THAN THE
U.S. CAN STILL DRIVE UP PRICES
FOR US BECAUSE IT IS A GLOBAL
MARKETPLACE.
>> FOR THE FIRST TIME IN
HISTORY, PRICES ARE AVERAGING
ABOVE $4 A GALLON IN EVERY
STATE PRICES CAN JUMP. JUST A
FEW SAYS THAT IN TIME OR EVEN
HERE IN SAN ANTONIO, THEY’VE
BEEN KNOWN TO JUMP 20 TO $0.30
OVERNIGHT. ONE PROPOSED
SOLUTION PRODUCE MORE OIL HERE
IN THE U.S.. THAT’S REALLY THE
ONLY WAY YOU’RE REALLY GOING TO
BRING DOWN THE PRICE OF CRUDE.
>> AND THEREFORE, BRING DOWN
THE PRICE OF GASOLINE. AND THAT
MEANS DIESEL FUEL AS WELL.
BRINGING THOSE PRICES DOWN
COULD BRING DOWN THE PRICE OF
GOODS AND SERVICES ACROSS JUST
ABOUT EVERY INDUSTRY. BUT
DRILLING MORE IS HARDLY AN EASY
SOLUTION THAT TAKES MANY YEARS
TO EXPLORE, DEVELOP TO GET
ADDITIONAL PERMITS FOR RIGHTS
OF WAY FOR WATER TAKEAWAY
CAPACITY FOR INFRASTRUCTURE
THAT MIGHT BE NEEDED.
HERE IN THAT MOMENT COUNTY,
IT’S JUST MUCH DIFFERENT THAN
IT WAS. THERE’S NOT THE BEEN
TOWN KIND OF
>> ATMOSPHERE, BUT OILFIELD
TRAFFIC IS PICKING UP AGAIN.
THE ONCE MAN CAMPS, PLACES
WHERE OIL FIELD WORKERS STAYED
AT THE HEIGHT OF THE EAGLE,
FORD SHALE, BOOM.
>> WE ARE TODAY HOTELS. THIS
ONE IS NEARLY FULL FOR THE
FIRST TIME IN YEARS. THEY’RE
BUSY AGAIN. SO IT’S GOOD FOR
LOCAL BUSINESS OWNERS. THERE
ARE LESSONS LEARNED FROM THE
FIRST TIME AROUND THAT FOLKS
HERE WILL KEEP IN MIND SHOULD
AN INCREASE IN OIL FIELD
ACTIVITY. KEEP ON TRUCKING.
NOW THAT WE KNOW ALL THE
THINGS, YOU KNOW, WE’VE DECIDED
WHO WE MAY NOT GET THAT BUZZ
NEXT TIME, YOU KNOW, OR WHAT
COMPANIES ARE, YOU KNOW, JUST
LITTLE THINGS LIKE THAT.
NOT SO LITTLE ARE THE BENEFITS
THAT JUDGE DEAL SAYS THE COUNTY
STILL SEES FROM THE EAGLE FORD
SHALE BOOM. ALL THESE YEARS
LATER, MOLLY COUNTIES AND BEEN
ABLE TO.
>> ALSO SAVE DOLLARS WHERE WE
CAN AND AND MAXIMIZE THE
DOLLARS THAT COME IN TAX
REVENUE AND BUT IN THE
SUSTAINED A GOOD FUND BALANCE
AND AND PREPARE FOR THE DAYS
WHENEVER THINGS ARE SO GOOD.
>> NOW THERE ARE CERTAINLY
OTHER ENERGY SOURCES OUTSIDE
OF OIL. BUT THE PRICE OF GAS
IS WHAT’S HITTING OUR MONEY
HARD RIGHT NOW. SO THAT’S WHY
WE CHOSE TO FOCUS ON GAS PRICES
IN THIS EPISODE TO FIND ALL
OUR KSAT EXPLAINS SO JUST SCAN
THE QR CODE YOU SEE RIGHT HERE
ON YOUR SCREEN. THAT’S GOING TO