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Natural gas reservoir, economic activity


In 2006, the Center for Business and Economic Research released an economic impact study of the newly developing natural gas industry related to the Fayetteville Shale. The Fayetteville Shale is an unconventional gas reservoir located on the Arkansas side of the Arkoma Basin, ranging in thickness from 50 to 325 feet and ranging in depth from 1,500 to 6,500 feet. That study concluded that from 2005 to 2008, economic output of over $5.5 billion and 9,683 jobs would be generated as a result of investments in the Fayetteville Shale. Those estimates were based on the best information available when the study was conducted; however, many of the companies involved in the Fayetteville Shale subsequently significantly accelerated their investment plans as the potential of the play was proved. Therefore, this report provides updated estimates, which better reflect the current investment plans of the companies involved, of the economic impact of the Fayetteville Shale natural gas industry on the state of Arkansas.