IHS: North American gas resource expanding

The North American natural gas resource continues to expand as breakeven development costs fall, reports IHS.

A new IHS study estimates that 1.4 quadrillion cu ft of natural gas in the US Lower 48 and Canada can be produced at a current, break-even Henry Hub gas price of $4/MMbtu or below.

That’s 66% more than the firm estimated in a study published in 2010.

About 800 tcf can be produced at a current break-even price of $3/MMbtu or less, the new study finds.

New discoveries, recent reductions in drilling and completion costs, and “major gains” in productivity are the main reasons for the expansion of potential gas supply.

Key factors in these trends, the study says, are improved understanding of subsurface geology, greater use of technology, development of specialized fracturing techniques, and emergence of new plays such as the Utica shale.

Also contributing to the gas-resource expansion is the addition to the resource base of associated gas in emerging oil-shale plays as development methods first used for gas in shale spread to oil.

IHS estimates the gas resource associated with Bakken, Eagle Ford, Permian basin, and other shale oil plays at 250 tcf.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...