--> The U.S. Natural Gas and Oil Resource Base is Abundant, But Can We Produce What the Country Needs?, by T. E. Ewing; #90986 (1994).

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Abstract: The U.S. Natural Gas and Oil Resource Base is Abundant, But Can We Produce What the Country Needs?

Thomas E. Ewing

Recent studies agree that the United States has abundant resources of gas and oil left to find and produce over the next 50-75 years -- if its exploration and production companies are given the resources to do the job. The NPC's estimate of 1295 TCF of natural gas (advanced technology case) represents a resource/present production ratio of 68 years. A similar estimate for oil gives 62 years. Furthermore, these resource estimates have been increasing through the 1980s, as the effects of new geological, geophysical and engineering technologies has become more apparent.

However, only 30% of this tremendous resource will be available under today's business-as-usual economic regime. The rest of the resource will be accessed if: (1) Tax policies (and financial and trade policies) are adopted to stabilize prices and stimulate exploration and production (estimated 27% of the resource base); (2) Technology is developed, transferred and used (17%); (3) Environmental regulation is held to a balanced level, considers economic costs as well as environmental benefits, and is applied consistently (13%); (4) Access to Federal lands is eased for environmentally responsible drilling and development (13%).

Even under today's depressed and capital-starved conditions, independent operators are scoring impressive successes using new concepts and new technologies to create economic wealth in some 40 major trends in 20 states from Pennsylvania to Alaska.

To convert America's gas and oil resources into delivered products in a timely manner, assuring the nation's gas users of a reliable supply--and contribute up to $8.7 trillion to the nation's economy--a doubling of industry effort is required, even at today's high levels of finding and producing efficiency. Coordinated action by industry, government, and the investment community is required to secure the future development of energy supplies. Government in particular must develop policies that encourage the needed investment in America's natural gas and oil.

AAPG Search and Discovery Article #90986©1994 AAPG Annual Convention, Denver, Colorado, June 12-15, 1994