“For my part, whatever anguish of spirit it
may cost, I am willing
to know the whole truth; to know the worst and provide for it.”
— Patrick Henry (1776)
United States natural gas production history shows that new wells are being depleted more quickly all the time; production from the newest wells have been declining about 28% per year. While this is partially due the fact that the large plays of NG are all aging and are in terminal decline. Newer natural gas fields tend to be smaller and are produced (and depleted) quickly in the effort to maintain overall production levels.
In an attempt to keep up with demand, the number of gas producing wells in North America has increased more than 30% since 1999.
In spite of increasing the number of natural gas wells by about a third since 1999, annual production peaked near 50 billion cubic feet per day and now continues to fall, so a growing percentage of natural gas supplies are being imported from OPEC and other countries.
NOTE: Throwing more money into production will not prevent a non-renewable resource base to be depleted.
To enlarge the picture, click on it.
Calgary, Alberta, June 3, 2004 (Reuters)
Natural gas production in Alberta, the largest exporter to the huge U.S. market, slipped 2 percent last year despite record drilling.
As oil companies maintain a torrid drilling pace amid sky-high prices, gas production may be flat at best, the Alberta Energy and Utilities Board (EUB) said in its annual report on reserves, supply and demand.
Alberta produced 4.8 trillion cubic feet of gas in 2003, or about 13.2 billion cubic feet a day, down about 2 percent from 2002, the report said.
Alberta's natural gas production peaked at 5.1 trillion cubic feet in 2001.
U.S.: New Natural Gas Policy Sought
By Jeff Johnson
American Chemical Society
January 12, 2005
Companies and conservation groups join to demand revised U.S. gas plan.
Seventeen organizations - chemical companies as well as environmental and conservation groups - fired off a letter to Congress last week urging a new energy policy to solve the nation's natural gas crisis.
Over the past few years, sky-high natural gas prices have hammered chemical companies that use gas as fuel and feedstock. Consequently, companies and trade associations have appealed for government support of more drilling and production as well as greater efficiency.
Environmental and energy conservation groups have urged more energy efficiency, but they have been at odds with industry's push for more drilling.
This recent letter brings the two sides together, recognizing natural gas's importance as a clean and valuable fuel and as a feedstock. The groups urge a host of conservation and efficiency measures, such as renewable energy tax credits, tougher building codes, more cogeneration, and greater energy R&D.
The letter also recommends pursuing new gas supplies in a "timely and environmentally responsible" manner along with "reasonable" government oversight and "meaningful" public input. In addition, it endorses more liquefied natural gas imports.
Signatories include Dow Chemical, Bayer, DuPont, Rohm and Haas, the American Chemistry Council, the Natural Resources Defense Council (NRDC), the National Environmental Trust, and others.
NRDC added in a separate statement that energy efficiency is the quickest way to cut demand and price. Some 80% of natural gas resources on federal onshore and offshore lands are already available for production, the group said, noting that the government issued 6,130 drilling permits last year but energy companies drilled only 2,702 new wells.
NOTE: Each year, there are fewer natural gas fields that have enough gas to justify the expense of drilling. Most of the larger drillers have abandoned North America and are now searching for natural gas in other countries.
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