Profiling supply
The E and P [exploration and production] sector of the industry is meeting challenges, and new technology continues to help improve the economics of drilling for natural gas. Preliminary Finds Concerning 1994 Natural Gas Reserves--supports this conclusion: It estimates that natural gas reserve additions in the US will be between 105 and 137 percent of production for 1994. This level is good for the overall supply picture, since it is higher than the reserve-replacement levels of the past several years, and it is a good indicator of increasing efficiency, since it is the highest level since (and may surpass) 1981, when more than two times as many rigs were drilling for natural gas. With 38% of US proved reserves and 52% of 1993 production, the Gulf Coast and Gulf of Mexico remain the pre-eminent natural gas-producing regions in the US. The mid-continent and Rocky Mountain areas of the country also hold significant E and P potential. Alaska remains problematic from an E and P standpoint: though experts believe more than 140 Tcf in reserves exist in the state (not counting potential coalbed methane), transportation remains difficult, and producers are still discussing whether to use North Slope gas for re-injection purposes [to enhance oil-recovery efforts] or to pipe it to a liquefied natural gas processing plant for export to the Pacific Rim. If wellhead prices firm and becomes somewhat predictable, and if natural gas demand continues to increase moderately, 1995 and beyond could be very exciting years for natural gas exploration and development.
- OSTI ID:
- 70009
- Journal Information:
- American Gas, Vol. 77, Issue 5; Other Information: PBD: Jun 1995
- Country of Publication:
- United States
- Language:
- English
Similar Records
Natural gas availability: present and future
Natural gas productive capacity for the lower 48 states 1984 through 1996, February 1996