Abstract

This report summarizes work completed on DOE Contract DE-AC21-92MC28138, Development of a Natural Gas Systems Analysis Model (GSAM). The products developed under this project directly support the National Energy Technology Laboratory (NETL) in carrying out its natural gas R&D mission. The objective of this research effort has been to create a comprehensive, non-proprietary, microcomputer model of the North American natural gas market. GSAM has been developed to explicitly evaluate components of the natural gas system, including the entire in-place gas resource base, exploration and development technologies, extraction technology and performance parameters, transportation and storage factors, and end-use demand issues. The system has been fully tested and calibrated and has been used for multiple natural gas metrics analyses at NETL in which metric associated with NETL natural gas upstream R&D technologies and strategies under the direction of NETL has been evaluated. NETL's Natural Gas Strategic Plan requires that R&D activities be evaluated for their ability to provide adequate supplies of reasonably priced natural gas. GSAM provides the capability to assess potential and on-going R&D projects using a full fuel cycle, cost-benefit approach. This method yields realistic, market-based assessments of benefits and costs of alternative or related technology advances. GSAM is capable of estimating both technical and commercial successes, quantifying the potential benefits to the market, as well as to other related research. GSAM, therefore, represents an integration of research activities and a method for planning and prioritizing efforts to maximize benefits and minimize costs. Without an analytical tool like GSAM, NETL natural gas upstream R&D activities cannot be appropriately ranked or focused on the most important aspects of natural gas extraction efforts or utilization considerations.

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