A University of Arkansas economist told state economic development leaders on Thursday that the natural gas boom in north-central Arkansas came just in time to help the economy through recession.
Kathy Deck, director of the UA Walton College of Business Center for Business & Economic Research, presented at a meeting of the Arkansas Economic Development Commission an updated report on the economic impact of the Fayetteville Shale Play.
The report, released Tuesday and funded by the Arkansas State Chamber of Commerce, showed investment in the shale from 2008-2011 at more than $12 billion, 29 percent greater than what was planned in 2008, when a similar economic impact study was completed.
Deck pointed out that the investment, along with thousands of new jobs, came during the height of the Great Recession, and helped keep Arkansas’ economy healthy.
"The development of the Fayetteville Shale came at exactly the right time for Arkansas," she said. "It helped us temper the Great Recession."
Deck said the study projected exploration companies to spend $2.7 billion in the shale throughout 2012, resulting in an estimated total economic output of almost $4 billion.
Total state employment impact is expected to be about 16,600 people during 2012.
"We’re not anywhere near the end of developing the energy in the Fayetteville Shale," Deck said.
Deck’s full, 110-page report is available here.
Other findings in the report:
- The total economic activity generated as a result of shale activities in the state from 2008 to 2011 was more than $18.5 billion, higher than the $14.2 billion estimated in 2008.
- Companies in the play also paid out $1.2 billion in mineral leases and royalties during the period.
- From 2008 to 2011, employment affects grew from more than 14,500 people to more than 22,000 people, the report said.
- And from 2004 to 2011, the state received more than $90.8 million in severance tax revenue from Fayetteville Shale activities.
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