Study measures shale's benefit to state at $18B

Tax or no tax, this is the kind of info worth reviewing. The University of Arkansas published a new study on the economic impact of natural gas production in the Fayetteville Shale today that says the work will be worth nearly $18 billion to the state between now and 2013. A similar study two years ago projected the 2005-08 impact to be $5.5 billion. Kathy Deck, director of the university's Center for Business and Economic Research, said the study looked at how a hypothetical 5% severance tax on natural gas production would affect the shale's economic impact. Here's the Associated Press article.

The study says the industry will generate 11,000 jobs and will result in $1.8 billion in state taxes through 2012. More than $150 million in local sales and property taxes will also be paid due to the exploration, drilling and production. You can read the full economic impact study here.