Chinese to boost South Texas boom to new high

Parts of South Texas already in the midst of a historic drilling boom soon will get a boost from an unlikely source: China. China's national oil company, CNOOC, will spend $2.2 billion to drill in partnership with Chesapeake Energy Corp. in the Eagle Ford shale, a rich oil and gas formation that lies under 11 counties. Exploration in the Eagle Ford already has brought newfound prosperity to South Texas' hardscrabble farming and cattle country, and Chesapeake said the ramped-up drilling could bring 20,000 jobs to the region. If the Eagle Ford shale's production levels reach forecasted levels, "it could definitely be a fairly strong contributor to the economy and to the investor, particularly in South Texas," said Bob Fryklund, research director at I.H.S. Herold, an energy research firm. I.H.S. has forecast that production from the Eagle Ford shale could reach 1 billion cubic feet a day in 2011, which is pretty robust, Fryklund said. That's the same level as what's currently the largest offshore natural gas gathering spot, the Gulf of Mexico's Independence Hub...more