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Student Research Forum

Amy Thibodeaux: "Haynesville Shale: Economic Effect & Cost Analysis"

 Amy Thibodeaux and research poster

Research Category

Business Case Study 

Research Purpose

The purpose of this study is to evaluate the economic effect and the cost analysis of the Haynesville Shale in the Shreveport, Louisiana, surrounding area. 

Research Methodology

The direct impact of the cost analysis and the economic effect can be measured by how much new money is injected into Louisiana's economy by activities of firms operating in the shale. In the case of exploration firms, they inject money via lease payments to landowners, monies spent on drilling activities, monies spent on administrative costs associated with operating a firm in the area, and direct taxes paid to governmental entities. Through extensive research and personal experience, I was able to determine how the Haynesville Shale has had an economic effect on the local economy.

Research Conclusion

The Haynesville Shale has had an economic effect and impact on new sales for firms in the state, new household earnings for residents, new jobs in the state, and tax collections by the state and local governments. It was reported in 2008 that for seven out of seventeen companies in Louisiana approximately $2.4 billion in new business sales came from the extraction activity of the Haynesville Shale, and as a result of these activities, nearly $3.9 billion household earnings were reported. Overall, the Haynesville Shale has boosted the economy in the Caddo, Bossier, DeSoto and Red River parishes to great extent.

Research/Practical/
Social Implications

Finds like the Haynesville Shale could make a real difference in the way we produce energy. It could help us have a cleaner energy in the future. The technology of horizontal, directional drilling, 3-D seismic and hydraulic fracture stimulation are technological advances that have transformed a high risk search for natural gas into a process more related to manufacturing. It has caused the general public to endlessly debate bonus values, royalty percentages and lease terms. Call it a "Play" or call it a "Boom," the Haynesville Shale commands attention and holds the promise for a brighter economic future.