Are Shale Gas Reserves Overestimated?09 Sep

This post presents two different estimates on the extent of U.S. shale gas reserves. One estimate is from the Department of Energy and the other is from Arthur Berman, well known petroleum geologist and consultant.

Department of Energy

“According to the EIA Annual Energy Outlook 2011, the United States possesses 2,543 trillion cubic feet (Tcf) of potential natural gas resources. Natural gas from shale resources, considered uneconomical just a few years ago, accounts for 862 Tcf of this resource estimate, more than double the estimate published last year. At the 2010 rate of U.S. consumption (about 24.1 Tcf per year), 2,543 Tcf of natural gas is enough to supply over 100 years of use. Shale gas resource and production estimates increased significantly between the 2010 and 2011 Outlook  reports and are likely to increase further in the future.”

Arthur Berman

Shale gas has become an important and permanent feature of U.S. energy supply. Daily production has increased from less than 1 billion cubic feet of gas per day (bcfd) in 2003, when the first modern horizontal drilling and fracture stimulation was used, to almost 20 (bcfd) by mid-2011.”

“Despite impressive production growth, it is not yet clear that these plays are commercial at current prices because of the high capital costs of land and drilling and completion. Our analysis indicates that industry reserves are over-stated by at least 100 percent based on detailed review of both individual well and group decline profiles for the Barnett, Fayetteville and Haynesville shale plays. The contraction of extensive geographic play regions into relatively small core areas greatly reduces the commercially recoverable reserves of the plays that we have studied.”

Tags: , , , , , , ,

3 Responses to “Are Shale Gas Reserves Overestimated?”

  1. diy solar panel Reply

    I would like more information.

  2. American Petroleum Institute Propaganda versus Facts on Oil and Gas | JHEverson Consulting Reply

    […] the extent of oil reservoir volumes are uncertain due to absence of modern seismic data. Further, shale gas reservoirs may be considerably overestimated as reported in a recent […]

  3. Outcome of Two Year U.S. Presidential Campaign Leading to Energy Policy: Verbal Hot Air and No Substance | JHEverson Consulting Reply

    […] Shale gas reserves […]

Leave a Reply

Time limit is exhausted. Please reload the CAPTCHA.

About Dr. Everson

Prior to forming this SBIR consultant practice, Dr. Jeffrey Everson was director of business development for QinetiQ North America’s Technology Solutions Group (previously Foster-Miller, Inc.).

Dr. Everson has won and been the principal investigator for several SBIR programs, including a Phase I program for NASA, a Phase I project for the U.S. Air Force, and Phase I and II contracts from the U.S. Department of Transportation. For the Phase II program, he received a Tibbetts Award for exemplifying the best in SBIR achievement.

Previously Dr. Everson held senior scientist positions at Battelle Memorial Institute, The Analytic Sciences Corporation (TASC), Honeywell Electro Optics Systems Division, and Itek Optical Systems Division.

He holds a PhD in physics from Boston College and a MS/BS in physics from Northeastern University.

Contact

For more information about how JHEverson Consulting can help your company with its SBIR and STTR proposals, please contact Jeff Everson.

JHEverson Consulting is based in the Boston area but consults for clients throughout North America. It also is supported by affiliated consultants.