On September 3, 2013, the University of Michigan released a comprehensive study on shale development in Michigan, which concluded that large scale development is not likely to occur in Michigan in the near future. The study analyzed the technical, economic, geologic, hydrogeologic, environmental, public health, and legal aspects of hydraulic fracturing in the state. The technical aspect of the study noted that Eastern Michigan's Utica and Collingwood shale formations are very deep and that no commercial development has occurred in either formation. The study concluded that the market price for natural gas would need to approach $6-$8/MCF for operators to be able to profit from high-volume hydraulic fracturing of the deep shale, while the current price of natural gas has peaked around $4/MCF.
The study may be found at: University of Michigan Study
Written by: Thomas Panighetti
September 10, 2013