Tight Gas - A Supplement to Oil & Gas Investor

Oil & Natural Gas / Gas (Tight) Sands / Development Technology

Date posted: 05/24/10

March, 2006 In 2005 the U.S. was dealt a solid blow from two hurricanes, causing natural gas production from the Gulf of Mexico to be temporarily knocked off line. Some production is still not back to pre-storm levels. This test of supply reliability reminded us all that diversity of gas supply is important. But onshore, producers are now able to increase production from a diverse number of basins with tight-gas reservoirs, thanks to better frac technology and regulators who are open to increased well density (downspacing) in certain plays. Tight-gas sands and shales in the U.S. may contain as much as 460 trillion cubic feet (Tcf) of gas, according to the U.S. Geological Survey (USGS). If some 135 Tcf of that is economically recoverable, as the USGS estimates, then that spells plenty of supply and opportunity for years to come.