Basins

A substantial amount of unconventional natural gas reserves await discovery in North America, both in existing basins and new areas, and likely will account for 42% of U.S. gas supply by 2010, according to a report by UK-based energy consulting firm Wood Mackenzie. Unconventional gas, which includes coalbed methane, tight gas sands and shale gas, accounted for 27% of U.S. supply in 2005.

A substantial amount of unconventional natural gas reserves await discovery in North America, both in existing basins and new areas, and likely will account for 42% of U.S. gas supply by 2010, according to a report by UK-based energy consulting firm Wood Mackenzie. Unconventional gas, which includes coalbed methane, tight gas sands and shale gas, accounted for 27% of U.S. supply in 2005.

Anyone who doubts the growing importance of onshore unconventional natural gas basins should take a look at second quarter results from EOG Resources Inc. and Southwestern Energy Co. Both companies credit prolific shale production — EOG’s in the Barnett and Southwestern’s in the Fayetteville — for strong results last quarter.

Pogo Producing Co. announced two transactions last week that have it pulling one foot out of the Gulf of Mexico and planting it in the Permian and Anadarko basins.

With conventional natural gas supply from the Gulf of Mexico (GOM) and other traditional U.S. basins drying up and widespread liquefied natural gas (LNG) access still a question mark, the GOM ultra-deep shelf play is the wild card that could help to pick up some of the slack in domestic supplies, according to Matthew Anstead, an analyst with Wood Mackenzie.

With conventional natural gas supply from the Gulf of Mexico (GOM) and other traditional U.S. basins drying up and widespread liquefied natural gas (LNG) access still a question mark, the GOM ultra-deep shelf play is the wild card that could help to pick up some of the slack in domestic supplies, according to Matthew Anstead, an analyst with Wood Mackenzie.

Following the Green River and Powder River basins in Wyoming, the Piceance Basin in western Colorado is destined to be the next area of substantial gas production growth in the northern Rockies thanks to EnCana, Williams and other producers, and to plans for additional pipeline infrastructure. However, development never moves quickly in the Rockies; this could take at least two or three years.

Following the Green River and Powder River basins in Wyoming, the Piceance Basin in western Colorado is destined to be the next area of substantial gas production growth in the northern Rockies thanks to EnCana, Williams and other producers, and to plans for additional pipeline infrastructure. However, development never moves quickly in the Rockies; this could take at least two-three years.

As the output from many of the natural gas producing basins in the United States declines and energy players focus overseas, the industry remains short on answers as to how North America will continue to feed its voracious appetite for gas.