Despite experiencing some of the lowest prices in two decades, natural gas production continues to grow at an extraordinary rate. Improvements in drilling efficiency, lingering high-priced hedges and a favorable oil-to-gas ratio are among the factors that have helped accelerate U.S. natural gas production. However, these same factors have contributed to such a degree that growth is unsustainable due to storage and pipeline limitations.
BENTEK’s market alert,
The Sky Is the Limit? U.S. Shale Gas Soars!, details the issues U.S. production growth face as the industry responds to the challenge of oversupply. This report highlights ways producers have set the stage to enter into a long period of substantial growth by fundamentally changing the economics of their business.
U.S. natural gas proved reserves jumped to their highest level in nearly 40 years in 2009, primarily driven by unconventional natural gas developments like Arkansas’
Fayetteville Shale play, the EIA announced Dec. 1.
U.S reserves, estimated as “wet” gas which includes natural gas plant liquids, increased by 11% in 2009 to 284 trillion cubic feet (Tcf), according to the U.S. Energy Information Administration’s summary on U.S. crude oil and natural gas reserves.
“Shale gas development drove an 11 percent increase in U.S. natural gas proved reserves last year, to their highest level since 1971, demonstrating the growing importance of shale gas in meeting both current and projected energy needs,” said Richard Newell, EIA’s Administrator. “Louisiana, Arkansas, Texas, Oklahoma, and Pennsylvania were the leading states in adding new proved reserves of shale gas during 2009.”
Shale drilling drives growth in U.S. natural gas reserves
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