Questions about shale riches | Arkansas Blog

Questions about shale riches



COST/BENEFIT: Insiders question the shale play.
  • COST/BENEFIT: Insiders question the shale play.

In case you missed the reprint in the Democrat-Gazette, the New York Times today has an important story about internal documents raising questions about the value of shale gas exploration, including in Arkansas. Costs of extraction are high; skeptics question the life of wells; many leases have been unproductive.

Maps illustrate that "sweet spots," or highly productive wells, comprise a small percentage of the Fayetteville shale and other formations.

One analyst argues that gas companies overstate reserves, as shown in this graph. The value of reserves can drive up a company's stock. Companies operating in Arkansas make the list.

The Times has posted a number of the documents referenced in the story on this page with a document viewer.

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