Natural Gas Development in Michigan Study by University of Michigan

University of Michigan Study Finds Michigan Will Not Have Shale Development in the Near Future

"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

The Main Conclusions

Technology. In view of the current low price of natural gas, the high cost of drilling deep shale formations and the absence of new oil discoveries, it is unlikely that there will be significant growth of the oil and gas industry in Michigan in the near-term future. However, considerable reserves of natural gas are believed to exist in deep shale formations such as the Utica-Collingwood, which underlies much of Michigan and eastern Lake Huron and extends into Ontario, Canada.

The technical reports are now available, and comments to help inform the Integrated Assessment are being accepted until 11:59 p.m. Eastern time on October 7, 2013.

Talking Points for the Assessment

Presentation 
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