ARTICLE: Haynesville Shale spares local economy (Shreveport Times)
Shreveport,
May 26 -
The huge amounts of money injected into the local economy via the Haynesville Shale activity has spared northwest Louisiana from the worst effects of the national slowdown, according to an economist whose second-year study of the industry was released Tuesday.
In the report, Dr. Loren C. Scott pointed out that the seven firms participating in his study "pumped an amazing $7 billion into the state's economy" in just one year. That sizeable injection of new money into the state can be equated to tossing a boulder into a pond.
Chesapeake Energy is major contributor to the overall impact, with an investment of more than $1 billion in exploration and production activities, representing 194 drilled wells and $62.6 million paid in taxes in 2009, according to J. Kevin McCotter, senior director of corporate development.
"Those tax payments helped our state and municipalities fund a multitude of projects from schools to roads, providing a strong asset base for Haynesville communities to thrive," McCotter added. "In every measure of our local economy, whether it's sales and ad valorem tax receipts, real estate values or employment, the Haynesville Shale economies have been largely insulated from the economic downturn impacting the remainder of the country."
Scott's study serves as tangible evidence to the "tremendous economic benefits of natural gas extraction operations in northwest Louisiana," said Don Briggs, Louisiana Oil and Gas Association president. "As the Haynesville Shale continues to prove its potential, it is important to remember that with the current economic climate and low gas prices, any inhibiting regulatory hurdles at the state and local levels could result in a chilling effect on drilling and certainly decrease these economic projections.
"As other shale plays around the country are becoming more competitive, it's imperative we maintain an environment that is open for business to ensure the economical development of this abundant resource in our state," Briggs said.
As the Haynesville Shale enters its third year in northwest Louisiana, the future continues to look bright, Scott said, although some of the oil and gas companies are scaling back drilling plans because of low natural gas prices, and in some cases a shift toward oil exploration.
"Drilling activity in the Haynesville Shale has held up extremely well given the very weak natural gas prices we are seeing. As time goes on, and more wells are drilled, we get a better idea of what areas have the best reservoir quality," said Joan Dunlap, Petrohawk Energy's vice president of investor relations. "During times of depressed prices, we can target those high quality areas, which are the most economic, while we look for ways to make lower quality areas more economic in the future. To me, that's what makes the Haynesville the 'real deal.'"
It's good when times are good, and it's good when times are bad. That sort of asset takes the sting out of economic cycles.
Added Deborah West, EnCana team lead for community and public relations: "The Haynesville Shale Impact Study clearly shows the positive economic effect that natural gas production has had in north Louisiana, generating billions of dollars in new business sales and providing almost 60,000 new jobs."
"EnCana is proud to be a contributor to that growth, and a partner to the communities where we operate. We take seriously our responsibility to work safely, to protect the environment, and to give back to the community through donations to local organizations."
http://shreveporttimes.com/article/20100526/NEWS05/5260311/Shale-spares-local-economy
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