Unknown to Lawmakers: The Availability and Economics of Natural Gas

The United States now has abundant and predictable gas supplies. While the U.S. oil production continues to decline and politicians talk about alternative supplies, unconventional gas has helped US natural gas production increase within the last year. Proven natural gas reserves have increased 10 of the past 11 years, according to the Energy Department’s Energy Information Administration, and thousands of miles of new pipelines have been built in every direction. In just the past 10 years, more than 20,000 miles of new natural gas pipelines have been built and brought on line. Those pipelines can carry more than 97 billion cubic feet of natural gas each day.

The bulk of the new natural gas supply is in the energy-rich Rockies and Texas. Producers are drilling traditional oil and gas wells and drilling into coal-bed methane reserves in Wyoming, Colorado and Utah. In Texas, it’s the Barnett Shale and the Bossier Sands tight-gas formations. The U.S. Geological Survey classifies the Barnett as an unconventional gas play. The Barnett shale wells are known for long-lasting production and a high drilling success rate. Two other plays, Haynesville in Louisiana and Texas, and the Marcellus shale in the U.S. Northeast, also are expected to boost U.S. production. More shale plays are expected to be found and large oil and gas independent producers will be the primary developers of these regional gas plays.