--> --> Abstract: Meeting the Nation’s Natural Gas Needs: Industry and Government Cooperation Needed, by Naresh Kumar; #90010 (2003).

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Meeting the Nation’s Natural Gas Needs: Industry and Government Cooperation Needed

By

Naresh Kumar, Growth Oil and Gas, Richardson, Texas

 

Natural gas supply and demand, unlike that for crude oil, is controlled by domestic and sometimes, regional market forces. Currently, natural gas provides 25% of our total energy needs. United States produces one-fourth and consumes one-third of the world’s daily supply. At current consumption levels, United States has a 9-year supply of proved reserves and almost a 60-year supply of potential resource. However, the supply and demand balance maintained by the market is such that a drop of less than three-week supply in the “system” can make the difference between markets being “flush” to markets being “short”. Local and regional imbalances have led to huge swings in prices during the last couple of years.

Demand for “clean fuels” throughout the world is only going to increase the demand for natural gas. Increase in US demand because of economic expansion and environmental considerations would require a national effort to make capital, rigs, personnel and technology available to meet the needs. Although we are importing approximately 15% of our natural gas, shortages in domestic production cannot be easily met through increasing imports. Nevertheless, the domestic environment has not been the most favorable for increasing supply. Almost a 10-year supply in places such as Rocky Mountain Basins, Alaska and the Outer Continental Shelf is either “off limits” or has severe restrictions against development. In order to meet the nation’s needs, a cooperative environment among industry, governmental agencies and the environmental community is required.

AAPG Search and Discovery Article #90010©2003 AAPG Southwest Section Meeting, Fort Worth, Texas, March 1-4, 2003