The Potential Gas Committee Wednesday increased its estimate of US natural gas resources to 2,170 Tcf, an 89-Tcf rise from 2008 that was largely attributed technological advances tied to shale gas.
But industry officials involved in the assessment said they still face an uphill battle convincing gas users that ample supply and stable prices are here to stay after years of price volatility.
PGC is a volunteer group of industry members that assesses the amount of technically recoverable gas in the US. The assessment, which is conducted every other year, does not include a schedule or market price for gas production.
The committee said its year-end 2010 assessment of gas resources included 1,739 Tcf of traditional reservoirs, including conventional, tight sands and shales, and 159 Tcf of coalbed methane. This assessment of undrilled resources, combined with the Department of Energy's estimates of 273 Tcf of proved gas reserves, totals 2,170 Tcf (See story, 1305 GMT).
The new total is the highest estimate yet from the committee, but the increase of 89 Tcf this year pales in comparison to the 542 Tcf boost the committee unveiled in 2008, the first year that the assessment had a good picture of new shale gas development.
John Curtis, a professor at the Colorado School of Mines who assisted the committee, said the gains this year were due to new technology that provides a more accurate picture of shale resources.
Microseismic technology allows producers to better see how they are drilling the shales, and higher frequency seismic technology provides a better image of the gas in the formation, he said.
But after historic volatility in gas prices, industry is still struggling to prove to customers that the supply estimates contained in the report will result in steady production and stable gas prices, according to Richard Snyder, the vice president of business development Centerpoint Energy Services and an observer on the committee. It is especially difficult to convince power plants that will rely on the fuel for decades, he added.
