Commentary by Eric Wilder – Royal Dutch Shell has announced that it has the rights to explore for natural gas on its recently acquired 70,000 acres in Central Arkansas.  Shell is looking for natural gas in the Fayetteville Shale, a producing horizon similar to the Barnett Shale in Texas.

The Barnett has emerged as perhaps the top gas play in North America and every prospective acre in Texas is literally leased.  This leaves no room for late players wishing to cash in on the boom.

The Fayetteville Shale in Central Arkansas is a look-alike to the Barnett Shale.  For years, Shell has concentrated its exploration only in areas outside the continental United States.  Their venture into Arkansas is a strong statement as to what they think about the United States’ growing natural gas shortage.  If Shell has thrown its hat into the ring, can other majors be far behind?

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