One opportunist in the Eagle Ford play is paying no mind to the current prices of crude oil and is setting his sights on future oil field worker housing development.
The San Antonio Business journal reported that Michael Spencer, who manages San Antonio-based InVision Housing Solutions LLC, is in the midst of raising $5 million in capital to build new oilfield worker housing at the Double C Resort outside of Carrizo Springs, Texas.
Oil prices hit another huge low Monday morning with a value of $46.01 per barrel. Additionally, there was an observation of rigs pulling out of Eagle Ford last week when the active rig count dropped four to 200. However, Spencer and many more know the game and realize that regardless of the temporary lows, production in Eagle Ford will continue. “The smart investor looks five, 10, 15 years out,” Spencer told the business journal.
Spencer claims his research shows that Carrizo Springs and surrounding Dimmit County remain the number one drilling site in the Eagle Ford Shale. “(Operators) drilled 4,000 to 5,000 wells around here,” Spencer said. “They have to keep taking care of them.” Development started back in 2008 and quickly created a housing shortage in the area.
Double C Resort owner Jeff Myers told the San Antonio Business Journal that he originally built the ranch for hunters but changed it to house oil workers amid burgeoning demand back in 2010. Myers sated that 103 oilfield camps rapidly moved into the area. But the Double C Resort sets itself apart from other living areas by offering two restaurants, Wi-Fi, television service, manmade lakes with fishing, hunting, trails and other conveniences. Myers said that the Double C is a home away from home where workers can relax after 12-hour days.
Both Myers and Spencer want to add another 59 RV sites and 47 cabins to the Double C Resort in March during Phase I of the development project. Eventually, the total amount of housing sites on the Double C Resort is expected to reach 482 with room to expand further if necessary.
Spencer said many companies already had their futures locked in at $90 per barrel and the current dip in oil prices is only temporary. He added that the Eagle Ford enjoys benefits such as proximity to refineries that other production basins don’t have. Read the full article by Serigo Chapa of the San Antonio Business Journal here.