Office of Mineral Resources

Louisiana Department of Natural Resources releases study on initial economic impact of Haynesville Shale

Friday, May 14, 2010

The Louisiana Department of Natural Resources has released a study on the initial economic impact of natural gas exploration in the Haynesville Shale indicating several billion dollars generated by the activity in the area.

DNR Secretary Scott Angelle commissioned a study on the 2008 impact of Haynesville Shale exploration last fall from Louisiana economist Dr. Loren Scott, and work on the study has only recently wrapped up.

“The exploration in the Haynesville Shale has generated such intense interest and excitement in the state of Louisiana, and has drawn such national attention, that I felt it appropriate that we get as clear a picture of the actual impact of the activity as possible,” Angelle said. “Dr. Scott’s study indicates that the Haynesville Shale may be every bit the game-changer for our state that we all hoped it might be.”

The Haynesville Shale formation is located primarily beneath the northwest and north central area of Louisiana, with most exploration activity centered around the parishes of Bossier, Caddo, DeSoto and Red River. Industry estimates indicate the natural gas in the formation may make the largest onshore find in the U.S.

Dr. Scott’s study show estimates that, during the year 2008, the activity in the shale accounted for, among other things:

  1. About $2.4 billion in new business sales in the state
  2. About $3.9 billion in household earnings created
  3. More than 32,000 new jobs in 2008

The study notes that the figures it contains are likely conservative, given that Dr. Scott’s research used data from only seven of the 17 companies involved with exploration of the Haynesville Shale. Those seven companies, however, accounted for about 72 percent of Haynesville Shale acreage.

The study covers many aspects of exploration in the area, including economic background in the area and how much different sectors of the economy have benefited from exploration of the Haynesville Shale.

“More and more of our domestic drilling has been for natural gas, which now makes up more than 80 percent of what rigs are drilling for in the U.S.,” Angelle said. “I think we are entering the golden age of natural gas, and Louisiana has the opportunity to take the lead in supplying it and showing the rest of the nation how to make the best use of it.”

The report is available at the DNR Haynesville Shale website at

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