Fayetteville Shale in the US, 2011 - Gas Shale Market Analysis and Forecasts to 2020

GlobalData
February 6, 2012
33 Pages - SKU: GBDT6800738
License type:
Countries covered: United States

Fayetteville Shale in the US, 2011 - Gas Shale Market Analysis and Forecasts to 2020

Summary

“Fayetteville Shale in the US, 2011 - Gas Shale Market Analysis and Forecasts to 2020” is the latest report from GlobalData, the industry analysis specialist, which provides insight into the shale gas exploration and development activities in the Fayetteville shale. The report provides an overview of the location, infrastructure and exploration and development activities of the Fayetteville shale. The report also provides details of the major companies that operate in the shale along with their coverage in the different counties of Arkansas.

The Fayetteville shale is one of the largest and highly concentrated natural gas resources in the US. The Fayetteville shale is located in Arkansas in the Arkoma Basin. The shale play has large amounts of undiscovered and technically recoverable hydrocarbon reserves. The shale is as deep as 1,000 to 7,000 feet with a thickness of 20 to 200 feet.

Scope

The report analyzes the Fayetteville gas exploration and production activities in the US. The scope of the report includes -
  • An overview of the oil and gas exploration in the Fayetteville shale
  • Discussion of major issues and drivers affecting shale gas exploration in the Fayetteville shale
  • An overview of the competitive landscape of the shale gas exploration in the Fayetteville shale, with details of the major companies operating in the region
  • Current exploration and production statistics for the Fayetteville shale play. It also provides forecasts for Fayetteville shale production from 2011-2020
  • Coverage and an overview of operations in the Fayetteville shale play
  • Information on the major mergers and acquisitions in the Fayetteville shale play from 2007-2011
  • Details of major infrastructure developments in the play over the past years are given
  • Discussion of the cost per well and finding and development costs in the Fayetteville shale.
Reasons to buy

The report will enhance your decision making capability. It will allow you to -
  • Develop business strategies with the help of specific insights into the Fayetteville shale gas exploration market in the US
  • Identify opportunities and challenges in the Fayetteville shale gas exploration market in the US
  • Plan your strategies based on the expected developments in shale gas exploration activities in the US
  • Understand the competitive landscape of the shale gas market in the Fayetteville shale
  • Remain informed of the key developments in this potentially game changing shale market



Additional Information

“Fayetteville Shale in the US, 2011 - Gas Shale Market Analysis and Forecasts to 2020” is the latest report from GlobalData, the industry analysis specialist, which provides insight into the shale gas exploration and development activities in the Fayetteville shale. The report highlights the gas production from various counties in Arkansas, providing details of the major companies exploring the Fayetteville shale and the drivers and challenges to shale gas exploration in the US.

The Fayetteville Shale is Expected to be Natural Gas Producing Hub in the Future

The Fayetteville shale, in a span of six years, has evolved to be a significant onshore natural gas producing play in the US. The production from the Fayetteville shale increased from 0.1 billion cubic feet (bcf) in 2004 to 777.6bcf in 2010.

The production from Fayetteville shale play is expected to show an upward trend. During 2012, the production from the Fayetteville shale is expected to increase to 929.1bcf, from 918.0bcf in 2011. The production is expected to grow at a CAGR of 5.2% for the period 2011-2020 and gradually reaching 1,453.2bcf by 2020.

The Fayetteville Shale Gas Success Mandates Infrastructure Development

The state of Arkansas had not seen any major infrastructural development activities before the discovery of the Fayetteville shale in 2004. However with the emergence of this shale, the state has witnessed significant infrastructural developments. Among the major infrastructure development plans in the shale play, the Fayetteville Express Pipeline (FEP) is being constructed to take produced gas in the Fayetteville shale play to Midwest and Northeast of the US. The Fayetteville and Greenville gathering lines also transport gas from the Fayetteville shale play to the market primarily through existing interstate pipelines of the US.

The Fayetteville Shale Attracted Substantial Funds for the Future Development of Natural Gas Resources

The recent downturn in natural gas prices has initiated the process of consolidation in the Fayetteville shale. With small players unable to sustain the low gas price pressures and opting out, this has provided large companies an opportunity to enhance their gas portfolio through the acquisition of these small companies or their acreage in the shale. Increased initial production rates and Estimated Ultimate Recovery (EUR) from the Fayetteville shale play, along with decreasing cost, makes the Fayetteville shale an attractive investment destination. Industry majors such as BP Plc, ExxonMobil Corporation, and BHP Billiton have acquired a significant acreage position in this shale play in recent years. These companies plan to make further investments in the Fayetteville shale in the future to unlock its reserve potential.

Low Natural Gas Prices have Impacted Drilling Activities in Fayetteville Shale Play

The number of producing wells in the Fayetteville shale increased from eight in 2004 to 490 in 2009, indicating increased interest of the companies in the shale play. The growth in the numbers of producing wells declined sharply from 85% in 2008 to 16% in 2009, owning to low natural gas prices. Further in 2010 the producing wells counts declined by 53% from its 2009 level to 228, reflecting sustained low natural gas prices.

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