Rising Estimates of U.S. Shale Reserves May Cap Natural Gas Prices

April 30, 2009

shale1
Locations of shale basins not geographically precise. E.g. Haynesville basin is located on the north Louisiana/east Texas border. Figures in trillion cubic feet. Source: The Federal Energy Regulatory Commission website, derived from the American Clean Skies Foundation.

Rising estimates of U.S. recoverable natural gas reserves from shale deposits could keep natural gas prices low over the next few years. The above map shows the sharp increase in recoverabe reserves from select shale basin in trillion cubic feet from 2006 to 2008.

Recent advances in horizonal drilling and rock fracturing techniques have made shale gas — traditionally quite costly to develop — more viable and help boost reserve estimates. — Joe Silha

Comments

There are still plenty of energy reserves to be found in the world (Brazil, Australia, Iraq, Russia), this can buy us extra time to develop alternative green energy resources.

 

CAPEX. We need funds for capital expenditures to bring more carbon-hydrogen based energy. The same for green energy.What would you say requires less financial muscle? I guess fossils because sinked costs have been internalized.

 

This is not a very good map. Someone needs a geography lesson. You admit that Haynesville is in NW LA and NE TX. But, southwest Wyoming is NOT in the southeast corner of Montana. And, the Woodford shale play is not in south central OK. The Marcellus play does not extend all the way across OH either. Why even publish such a map?George HamptonGeologist

Posted by George Hampton | Report as abusive
 

It’s all well and good to assume that these reserves are there, but its a double edged sword. People assume there is a large quantity of gas in place, which their is, however the recovery of that gas is contingent upon commodity prices being such that the illusion of massive supply can be realized. Without good economics, companies will simply not produce gas, and thus how much of it their is in the ground will not be reflective of how much is there to fulfill demand, as it will simply, not be produced.

Posted by Bryan | Report as abusive
 

To learn about shale play happening outside of North America, visit http://realm-energy.com

Posted by michaela100 | Report as abusive
 

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