A Slowdown | Green Arkansas

Tuesday, February 10, 2009

A Slowdown

Posted By on Tue, Feb 10, 2009 at 11:53 AM

Falling natty gas prices are slowing down exploration.  Here's a report from a Faulkner County point-of-view.  The Log Cabin has more.

A study released in March of last year by the University of Arkansas' Sam Walton College of Business Center for Business and Economic Research projected that the Fayetteville Shale Play would have an economic impact of $17.9 billion on the state over the succeeding five years. However, the study says, the estimate is subject to certain risks.

"The first is that the price of natural gas declines to a level where production in the Fayetteville Shale is no longer profitable for the companies operating there. According to the survey respondents, an average price of $6.21 per MMBTU is necessary for the forecasted investments to be made. A sustained decrease of $1 from that level could cause a 47 percent decrease in investment in the Fayetteville Shale," says the executive summary, which was prepared by Kathy Deck, director of the Center for Business and Economic Research.

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