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Shale Gas Leads 8.8 Percent Increase in U.S. Gas Production New natural gas drilling, which uses advanced technologies to extract the fuel from shale beds, is on the rise, promising to increase domestic natural gas supplies over the next decade or so. This supply could keep utility bills from rising as fast in response to surging global energy prices and give a boost to energy-intensive industries.
Domestic gas production was up 8.8 percent in the first five months of 2008, compared with the same period in 2007, representing a rate of increase unparalleled since the drilling boom that followed WWII. Meanwhile, since early summer, domestic prices have fallen 42 percent thanks to a mild summer and a glut of excess supply.
In Congress, some Democrats are painting the fuel as a potential stopgap for transportation needs until economical renewable energy sources are available on a wide scale.
But the extent of the gas-producing shale reserves is still a matter of debate. Thus far, a large portion of the increase is coming from the Barnett Shale region, near Ft. Worth, Tex., which currently produces about 7 percent of the nation’s supply.
Elsewhere in the country are additional shale formations that companies hope could produce far more gas than the Barnett region.
Navigant Consulting, in a report commissioned by gas industry interests, estimates a potential reserve of 842 trillion cubic feet of retrievable gas—about 40 years’ supply if consumption were to continue at present levels. The U.S. Energy Department’s estimates are much more conservative: about 125 trillion cubic feet that could be economically produced.
Even if the large reserves are there, shortages of technical expertise and equipment and battles over land and water rights will likely slow development in some locations. The new extraction technologies being used domestically could have major implications for global natural gas supplies, as well, where development using new techniques is barely underway. Return to September 2008 Western Energy News To sponsor Western Energy News , please contact WEI at 503 231-1994.
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