Is this possible? Can the US actually support themselves in the natural gas market and become an exporter of natural gas? With basin centered gas accumulations, shale gas, and coal bed methane deposits all within the US boarder, this might be possible. Technology now allows us to drill multiple horizontal legs from a vertical well, extending up to about two miles and having around 30 fracture stages, stimulating the reservoir. This allows the well to more efficiently drain the reservoir and extends the life of the well production. Below is a picture show the shale gas plays that the US are prospecting and already drilling.
As you can see, some of the fields have an estimated reserves potential and some don't. Some of the fields are still being examined geologically for the potential gas reserves. But, just from this picture, this is evidence that the US can potentially provide enough gas to support itself (with the help of conventional, BCG, and CBM).
Natural gas is not going to completely replace oil, but it can substitute for certain situations, such as the ones that were discussed in the article. Right now gas is around $4/Mcf and oil is around $95/bbl; the energy ratio of gas to oil is about 16 times. So if you do the math, most companies today are prospecting more for oil than gas because there is a larger profit to be made. What will it take for more companies to pursue and drill for natural gas within the US?
Interesting--I'd like to know more. I thought natural gas was somewhat risky because the markets are so volatile for that resource. Also, aren't there significant environmental concerns associated with NG extraction (as with petroleum, tar sands, and the rest)? Would like to hear your perspective on these questions.
ReplyDeleteI need to do some more research about this...but there is a slight flooding of the market right now in NG because exploration and production companies have become very good at targeting and extracting natural gas (with the increase interest in unconventional reservoirs).
ReplyDelete