Abstract: Natural Gas Industry Potential in the Empire State- A Multi-Year Plan
John P. Martin
To remain competitive in the global energy market, the domestic natural gas industry has streamlined to reduce the costs associated with the exploration and production of natural gas. The result is an industry that is delivering adequate supply to market even with falling prices. According to the Energy Information Administration, domestic natural gas production rose 3 percent in 1993 to 18.3 trillion cubic feet, a continuation of the upward trend seen since 1986.
Yet, New York State natural gas production has been declining over the same period with 1993 production standing at 23.5 billion cubic feet, representing 65% of the 1986 peak. An initial review revealed that the decline in production did not result from reservoir depletion but rather economic conditions. The cost of producing natural gas in New York did not justify a higher production level.
The New York State Energy Research and Development Authority (NYSERDA) sponsored a New York State natural gas forum in the Fall of 1994 to identify the specific issues and action steps necessary to reverse this trend. Surveyed participants suggested a number of research, information, institutional, and business development ideas to help the industry compete more effectively. From this, NYSERDA has created a multi-year plan with the goal of providing New York producers with the tools to competitively develop the state's natural gas resources.
AAPG Search and Discovery Article #90954©1995 AAPG Eastern Section, Schenectady, New York