Discovery Of Natural Gas Research Articles

Economics of Natural Gas Resources and Supply: ABSTRACT

The relative availability and cost of finding and producing natural gas fields of varying size, located in regions of the United States at various depth intervals, are examined under different economic assumptions. First, historical trends related to the discovery and availability of natural gas are identified and discussed. These include trends in drilling activity, reserves production, and field-size distributions. Exploration, drilling, and production costs are presented and analyzed. This information is integrated, along with other data, as part of an economic evaluation of the natural gas discovery and production process in the United States. Finally, possible future discoveries of natural gas are projected based on varying assumptions related to the underlying distr bution of natural gas resources. End_of_Article - Last_Page 514------------

Uncertain Future of Natural Gas Production in U.S. Lower 48 States: ABSTRACT

The Office of Technology Assessment (OTA), an analytic support agency of the United States Congress, has examined the process of forecasting future supplies of conventional, domestically produced natural gas in the U.S. lower 48 states to the year 2000. Its investigation focused particularly on the technical sources of uncertainty, including the incomplete geologic understanding of the remaining resources and the difficulties involved in properly interpreting and extrapolating past trends in natural gas discovery. The OTA examined the arguments developed by supply optimists and pessimists regarding both the size of the recoverable resource base and the speed with which new resources can be discovered and produced. As part of the investigation, resource-base estimates, ranging from those of H. King Hubbert and Richard Nehring to those of the U.S. Geological Survey and the Potential Gas Committee, were reviewed and compared. The OTA concluded that the credible ranges of estimates for lower-48 resources and future production potential are very wide--400 to 900 tcf for the remaining recoverable resources of conventional gas at near-current prices and technology, and 9-19 tcf/yr for the year 2000 production under the same price and technology conditions. End_of_Article - Last_Page 517------------

The Physical Metallurgy of HSLA Linepipe Steels—A Review

The discovery of oil and natural gas in severe climate conditions such as arctic regions has resulted in more-demanding mechanical property requirements for high-strength linepipe steels. These steels should have higher strength and toughness as well as excellent weldability. New high-strength, low-alloy (HSLA) steels for linepipe have been developed from the laboratory to full-scale production with astonishing speed in the last decade. These steels can be divided into three categories based on the microstructure, namely, ferrite-pearlite steels, acicular ferrite or bainitic steels, and multiphase steels. The physical metallurgy of these steels is reviewed and discussed, with emphasis on processing, structure-property relationship, and response to the U-O-E pipe forming process.

Economic Analysis of the North Sea Oil and Gas Region

Summary This study looks into the economics of 27 North Seaoil and gas fields in the U.K. and Norwegian sectorson the basis of the most recent cost and investmentestimates together with the expected productionprofiles. A sensitivity study of each project ispresented, including an economic analysis of therecent changes in the fiscal regime in both sectorsduring 1979-80 as well as a cost study consideringgeneral up-to-date statistics, the recent developmentsconcerning cost escalations, and some costcorrelations. Finally, the North Sea reserves andsupply potentials are discussed. Introduction The North Sea province, containing light, low-sulfurcrude oil as well as gas, and situated in a politicallystable region close to main consumer markets, is oneof the most important petroleum regions in the worldtoday. Since the onshore natural gas discovery inGroningen in 1959, the oil industry's interest in thispart of the world has increased rapidly. The firstoffshore drilling took place in Dutch waters in 1961, while the first application for permission to explorefor oil and gas in Norwegian and U.K. waters was received in 1962. In 1965, the first hydrocarbon wasfound in U.K. waters with a gas discovery, and in1969 the first major oil field was struck in theNorwegian part of the Continental Shelf. Duringthe last 10 years there has been a tremendousdevelopment in the North Sea area, and the region has become one of the most important offshorelaboratories in the world. We investigate the overall economic conditions of27 oil and gas fields in the North Sea sectors of theU.K. and Norway (Fig. 1). These fields have totalproved reserves of approximately 20 Bbbl of oilequivalent. The recoverable reserves for the differentfields vary from the small 50-MMbbl fields (Argylland Auk) to the giant Ekofisk area with a total of3,800 MMbbl of oil equivalent. The productionregimes of the fields in this study are presented inTable 1. Development began on all fields during the1970's--six fields have been completely developedand the other 21 fields are expected to be completedduring the 1980s. The development periods for theNorth Sea fields are between 5 and 14 years.Seventeen of these fields produced oil in 1980, whilethe rest will start production during the next 4 years. Production from these fields is expected to endbetween the mid- 1990's and the end of the firstdecade of the next century. The productive life spanvaries from approximately 10 to 35 years, with thebulk between 10 and 20 years. The average production-to-reserve ratio variesbetween 3 and 14% and the water depths range from45 to 186 m. The Ekofisk area, Brent, and Valhall areevaluated with production of oil as well as gas. TheEkofisk area comprises these fields: Albuskjell, Cod, Edda, Ekofisk, West Ekofisk, Eldfisk, and Tor. TheFrigg field is a gas field, and only the Norwegian part(60.82%)is included in this study. Further, only theNorwegian part of Statfjord(84.09%) and the U.K.part of Murchison (83.75%) are considered. The total development expenditure for the 27 fieldsin our study is estimated to be 56 billion 1980 dollars, while the investment per barrel per day of peakproduction varies from approximately $5,000 to $20,000. JPT P. 2515^

Geology and Bouguer gravity anomalies of the Gulf of Tonkin and vicinity

Outcrops of rock types around the Gulf of Tonkin range in age from Cambrian to Recent. The basement complex of the Gulf of Tonkin consists of Carboniferous carbonates and Lower Paleozoic metamorphic rocks. The Gulf of Tonkin and vicinity are comprised of three tectonic units: 1.(1) the Caledonian South China-North Vietnam Foldbelt,2.(2) the Variscan Southeastern Maritime Foldbelt and3.(3) the Indosinian Foldbelt of Vietnam. The Gulf of Tonkin subsided after the Cretaceous period. Up to 5 km of Tertiary sediments has accumulated in the Gulf of Tonkin. A distinct Bouguer gravity anomaly of +10 mgal is present in the middle of the Gulf of Tonkin and is also associated with shallow depth to Moho. Recent discovery of natural gas and oil in the Gulf of Tonkin may indicate major oil and gas fields.

The Sulphur Industry In Alberta

Introduction Recent increases in worldwide demand for sulphur have resulted in a rapid escalation of prices. This price increase has greatly improved the Canadian sulphur export picture. The Alberta net-back price now makes remelting of stockpiles profitable. For the first time since 1966, inventories are declining and sulphur can no longer be labelled an undesirable by product. As a result of these changes, more effort and sophistication is being applied to sulphur production and marketing. These improvements are likely to continue as a result of an increasing awareness and appreciation of the limitations on the economically· available stock of the resource in Alberta, and the rising cost of Frasch production elsewhere. This paper seeks to provide the reader with a brief description of the industry, its history and future, as well as related issues. History of the Industry In 1924, Royalite Oil Company Limited constructed the first commercial-scale gas processing plant in Alberta. This plant recovered natural gasoline and residue gas from the wet solution gas being flared. The first gas scrubbing plants utilized the Seaboard Process (later replaced by the Gerbitol Process) to remove hydrogen SUlphide gas; however, no sulphur was recovered. In 1934, Gas & Oil Products Limited, later Anglo American Exploration Ltd., constructed a plant near Hartell and in 1936 The British American Oil Company Limited built a plant near Longview. These three plants comprised the total natural gas processing industry in Western Canada until after the Leduc oil discovery in 1947. Since then, the plants at Longview and Hartell have ceased operations, but throughout the province numerous other plants had to be built to strip liquids and remove sulphur in order to render the gas marketable. The first plant to commercially extract sulphur from sour natural gas was the Shell Jumping Pound Plant. It was placed on stream in 1951 and was initially designed to process 990 thousand cubic metres per day of raw gas and recover about 30 tonnes per day of elemental sulphur. Regulatory Development Royalite No.4, which made the major natural gas discovery in 1924, ushered in an era of waste at Turner Valley. The only way to get a saleable product was to strip the condensate and flare the gas. Even before oil was discovered in 1931, it had been realized that gas flaring had robbed the reservoir of much of its virgin pressure. The oil and gas that would have otherwise been recovered had become locked into the pool forever. The Alberta government, concerned since 1930 about this loss of production and royalty, created the Petroleum and Natural Gas Conservation Board in 1938 to enforce the Oil and Gas Conservation Act. In 1970, it became evident that Alberta needed to review its requirements for all forms of energy resources and provide a means of government-coordinated development of the petroleum in the province. The result was the passage in 1971 of the Energy Resources Conservation Act.

NPR-Alaska, an Update: ABSTRACT

One of America's last, large frontier onshore hydrocarbon exploration provinces, the vast National Petroleum Reserve in northern Alaska, continues to offer considerable hydrocarbon potential. Although commercial discoveries of oil and natural gas have yet to be found, many significant prospects remain. Several structural features have been tested, but the most promising future prospects appear to be stratigraphic. The federal government, first through the U.S. Navy and now under the U.S. Geological Survey, has amassed a very competent, dedicated staff and a tremendous amount of excellent exploration data. The data are currently being integrated into many private industry exploration programs and files through the public release of hundreds of millions of dollars' worth of new geophysical and geologic data. Both government and private industry must continue to maintain a very positive exploration attitude toward this important area. End_of_Article - Last_Page 806------------

A Strategic Perspective on the Arctic

Strategically, the Arctic enjoys the unique – and also somewhat precarious – position as a ‘buffer zone’ between the two superpowers; the USA and the USSR. On the outskirts of the Arctic region, the Barents Sea has become, in military-political terms, one of the most important sea areas in the world. A factor of prime significance in this connection has been the growing Soviet emphasis on a forward naval strategy linked with the massive build-up of the Northern Fleet and the Kola base. Against this backdrop, the author analyses the strategic importance of the Polar region, and the changes brought about by the discovery of oil, natural gas and minerals in Northern Siberia, Canada and Alaska as well as on the continental shelf in the Arctic Ocean. Although the development and transit of these new resources could become a stabilizing factor in the area, there are still unresolved problems as regards division of rights and boundaries. The main strategic importance of the Polar region will still be derived from its location between the two superpowers. The author finds that the situation as it now develops in the Polar region could be exploited to achieve two important aims of Norwegian foreign policy: to strengthen Norway's ties with its Atlantic partners, and to increase the assurance of the Soviet Union. In order to achieve these aims, a common policy should be worked out in cooperation with other NATO members who have interests in the Polar region, i.e. Denmark, Iceland, Canada and the United States.

A Strategic Perspective on the Arctic

Strategically, the Arctic enjoys the unique - and also somewhat precarious - position as a 'buffer zone' between the two superpowers; the USA and the USSR. On the out skirts of the Arctic region, the Barents Sea has become, in military-political terms, one of the most important sea areas in the world. A factor of prime significance in this connection has been the growing Soviet emphasis on a forward naval strategy linked with the massive build-up of the Northern Fleet and the Kola base. Against this back drop, the author analyses the strategic importance of the Polar region, and the changes brought about by the discovery of oil, natural gas and minerals in Northern Siberia, Canada and Alaska as well as on the continental shelf in the Arctic Ocean. Although the development and transit of these new resources could become a stabilizing factor in the area, there are still unresolved problems as regards division of rights and boundaries. The main strategic importance of the Polar region will still be derived from its location between the two superpowers. The author finds that the situation as it now develops in the Polar region could be exploited to achieve two important aims of Norwegian foreign policy: to strengthen Norway's ties with its Atlantic partners, and to increase the assurance of the Soviet Union. In order to achieve these aims, a common policy should be worked out in cooperation with other NATO members who have interests in the Polar region, i.e. Denmark, Iceland, Canada and the United States.

The Regulatory Implications of Three Alternative Econometric Supply Models of Natural Gas

Three different econometric models of natural gas exploration and discovery have appeared in recent issues of this Journal. By estimating all of them over the same period and with the same data base, and then by simulating each of them as part of a complete supply-demand model, we can compare the regulatory policy implications of each formulation. The reestimated models are seen to have very different price elasticities from their original versions, indicating possible structural change in the industry over the past two decades. The policy implications, in terms of ceiling price increases necessary to eliminate the current shortage of gas, differ considerably among the formulations and indicate no consensus on how gas supplies are likely to respond to price increases.

GAS AND OIL PIPELINES IN AUSTRALIA; LEGISLATIVE PROBLEMS AND SOCIAL ISSUES

The discovery of natural gas in Australia during the 1960s and its subsequent development in several States as a highly important form of energy led to many changes in sources of supply and methods of distribution and of legislation needed to regulate these aspects.Among the most important of these changes was the closing down of gas-making plants traditionally located close to points of consumption and their replacement for the first time in Australia by long distance, high pressure natural gas trunklines and networks of new, high pressure distribution pipelines and supply mains. As long distance pipelines in particular posed many problems and introduced new factors outside of the traditional role of gas utilities, all States in Australia except Tasmania, found it necessary to introduce special legislation to govern the laying and operation of these pipelines.Three States-Victoria, New South Wales and Western Australia, introduced Pipelines Acts based largely on those in Canada and the United States; two States-Queensland and South Australia, amended existing petroleum enactments and in two States-Victoria and South Australia, statutory pipeline authorities were established. In one of these - Victoria, the pipeline authority has since been absorbed into a semi-government instrumentality which now controls the whole distribution of gas in the State.The new or amending pipelines legislation varied considerably from State to State but basically all were designed to achieve the same objective -to regulate the conveyance of petroleum, particularly natural gas, from the point of discovery to the main area of consumption which varies widely in each State, e.g. from about 150 miles for Melbourne in Victoria to about 800 miles for Sydney in New South Wales.The widely spaced location of Australia's principal gas fields and their distance from the major points of consumption also led to the Commonwealth Government in 1973 establishing a Pipeline Authority for the purpose of ultimately linking these fields together to ensure continuous, adequate and balanced long term supply to the main residential and industrial areas of the country.Inevitably social issues which had been gaining ground overseas, particularly in the United States of America, began appearing on the Australian scene. These involved consideration for the environment in which the community lives and the preservation of the ecology, both broadly termed conservation. New legislative measures dealing with the environment and protection of public land were passed. These affected many pipeline projects. Additionally, in most States a social issue of longer standing also became a factor in the selection of routes of pipelines. This was town planning.Thus to the original issues of protection of rights of property owners and the operators of the pipelines and of establishing standards of construction, have now been added those relating to the environment and ecology, the use of public land and of town planning. The selection of routes of hydrocarbon pipelines is now a matter of wide public concern and social issues will increasingly influence their location and operation.

Environmental Implications of Developing Coal Resources: ABSTRACT

There are new things in reclamation but mostly there are just increased awareness and better performance by industry. Most of us in this business consider ourselves good citizens and dislike the label of a despoiler of America's pristine beauty. Yet we are torn between that which is desirable and that which is economically feasible. In approaching the subject of reclamation the problem must be put into perspective. It is established that the United States will approximately double its present consumption of minerals and mineral fuels each 15 years. During the past 30 years the United States has used more minerals and fuels than did the entire world in all previous history. There is increased demand for great amounts of energy from oil, natural gas, coal, and hydroelectric power, not to mention atomic energy and solar energy. Shortages in some of these areas are already appearing with the discovery of natural gas and oil now falling behind the consumption. Present estimates by the industry are that 6 million bbl of this oil must come from synthetic sources including coal and oil shale. We will be disturbing ever-increasing areas of the earth's surface to recover the fuel we need and surface mining must of necessity increase many fold. Therefore, we must expect increasing pressure from citizen's groups, sportsmen's organizations, environmental study groups, newspapers, and state and federal governments. It is incumbent on us as an industry to actively and accurately tell our story to the public, so that every citizen in the states where we operate realizes that we are doing more than just making money--we are also providing them with needed electric power with fuel for the many industries that give them the civilization they demand; we are contributing substantially in taxes to provide schools, hospitals, and other civic benefits; and we provide the base for a thousand and one other products and services used in everyday life. Because laws are obviously going to come, it is only sensible that the mining industry take a heavy part in drafting them so that insofar as possible they not be restrictive or punitive or otherwise unfavorable to such an extent that mining operations are curtailed or placed in a poor competitive position with other fuels. Reclamation must be a part of our every day mining operation and must be an anticipated expense. This reclamation must be the result of combining the best technical assistance we can get to the hard economic facts of the coal mining business. This reclamation must be carried on with sensitivity to the needs of the area we are mining and to the feelings of the residents of the area. As increased federal interest in spoils reclamation is a certainty, we must ask companies to participate aggressively in establishing just and realistic reclamation laws. We must overcome the ostrich attitude our industry has had in the past because the conservation movement and increased awareness by the public of our environment are here to stay. End_of_Article - Last_Page 957------------

A Three-Dimensional Model For Predicting Natural Gas Reserves And Availability

Abstract A model is presented which analyzes the discovery and subsequent appreciation of natural gas in Alberta using data compiled by the Alberta Oil and Gas (now Energy Resources) Conservation Board. This model is then used for the prediction of new discoveries and subsequent appreciation of existing discoveries. This means that the volumes of gas discovered are analyzed and predicted both as a function of discovery year and year since discovery. Introduction PREVIOUS ATTEMPTS at statistically estimating natural gas reserves have dealt with the problem as a process which analyzed and subsequently predicted reserves as a cumulative quantity. No attempt was made at separating the appreciation of present reserves and the prediction of new reserves. Noteworthy of the studies that have been performed are two approaches. The first approach, presented by Hubbert(1) and Moore(2), uses cumulative gas reserves tabulated by calendar year and involves the fitting and extrapolation of S-shaped curves of either logistic or Gompertz form, respectively, with the latter curve giving a slightly better fit to the data presented here. The second approach, presented by the Alberta Oil and Gas Conservation Board(3,4) uses cumulative gas reserves tabulated by years since discovery and analyzes the growth pattern of the appreciation of existing gas reserves. This method does not predict an ultimate initial established marketable gas reserves, but does provide a very good fit on a cumulative basis of the appreciation of existing reserves. This paper is aimed at statistically analyzing the way estimates of natural gas reserves grow. The model used for the analysis is referred to as a three-dimensional model because it is a function of three factors - the calendar year, the year since discovery and the amount of reserves known at these times. Alberta Oil and Gas Conservation Report data(3) used in this study are shown in Table 1. The Table shows) by year since discovery and by calendar year, the recognized reserves of some 400 natural gas pools discovered subsequent to 1950 which have initial reserves greater than 10 billion cubic feet. In total, it is estimated that these pools represent 72 per cent of the total reserves that have been recognized as being discovered prior to December 30, I970. GENERAL STRUCTURE OF THE MODEL Appreciation of Existing Reserves Once given the amount of gas discovery in any one particular year (t), the appreciation of this gas is a very regular process which slows down exponentially with time and hence the cumulative growth has the form of a limited exponential of the following form. (Equation Available In Full Paper) Applying this model to the data presented in Table 1 for the years of discovery 1951 to 1960, the following results were obtained by non-linear least-squares techniques. (Equation Available In Full Paper) As can be seen from the above results, each individual model as well as the cumulative model provides a good description of the data.

Traditional energy resources: Present state and future development

In the United Kingdom, in particular, the difficulty of reconciling short-term economic and commercial objectives with long-term technical and supply problems has been complicated by new elements: the nuclear energy programme, the discoveries of natural gas and the extension of off-shore oil exploration. The situation is further complicated when the energy problems of the third world are considered, for world consumption will reach astronomical proportions if it were to approach the current North American level. The most hopeful feature of the energy situation is that its seriousness is now being realised.

Development and Application of Medium Speed Gas Burning Engines

The discovery of North Sea natural gas has provided a test facility not previously available in the United Kingdom which has enabled the development of natural-gas burning engines, also suitable fo...

Development and Application of Medium Speed Gas Burning Engines

The discovery of North Sea natural gas has provided a test facility not previously available in the United Kingdom which has enabled the development of natural-gas burning engines, also suitable for overseas markets, to proceed at a rapid pace. The development of such a medium speed gaseous fuel engine is described, with details of the methods used to obtain the desired operating characteristics of gas–air mixing and mixture strength, ignition timing and control of changeover from one fuel to the other; some typical applications of this type of engine are given.

High speed gas slows down prices

With a gross revenue fast nearing £700 million, 115,000 employees and over 13 million customers, the gas industry is a vast enterprise, and discovery of natural gas in the North Sea has transformed it.

Supply Response in a Regulated Industry: The Case of Natural Gas

This article contains the application of an econometric model to estimate the price responsiveness of new discoveries of natural gas. The model isfitfor the period prior to the beginning of area rate regulation of the wellhead price of natural gas. The theory of joint costs and the effects of dissimilar inventories of undrilled gas and oil prospects are used to explain the pattern of signs and magnitudes of the coefficients derived. These coefficients are then used to simulate discoveries for the regulatory period and the simulation is compared to the record of actual discoveries. The simulated discoveries are uniformly higher than the actual observed discoveries. A possible explanation of this result is the effect of regulation and changes in regulatory policies upon the elasticity of expectations for gas prices, and a rigorous statement of the relation is developed. We close with a general discussion of the magnitude of price increase necessary to clear the market for new gas discoveries.

Integrated Exploration Economics in Wyoming--Viewpoint of the Geologist

Wyoming's general economy relies heavily on its mineral industries. Much exploration has taken place in the past 10 years and there were many new discoveries of oil, natural gas, uranium, and other minerals. The 400-500 professional geologists responsible for these developments can be justly proud of their accomplishments. Integration of mining and petroleum activities has been commonplace and has led to modifications in exploration philosophy. Intercompany exchange of subsurface information has broadened the economic perspectives of both industries. Collectively the mineral industries are entering into new and more profitable types of investment programs as a result.

Who is Minding Our Energy Business?: ABSTRACT

One measure of economic development of nations is the per capita use of energy. The United States has attained the highest standard of living and economic development in all history because of a plentiful supply of inexpensive primary energy. The consumer has come to take this low cost, constantly replenishing energy pitcher for granted. Unfortunately, this nation now finds itself in the position of a instead of a nation insofar as oil and gas, our principal sources of primary energy, are concerned. Domestic sources are rapidly drying up, although those of us who continuously study the situation know that there is a large potential supply of both oil and gas awaiting discovery in the contiguous United States. What has gone wrong? There are many reasons, but principal among them is that oil and gas have become the whipping boys of politicians, instant environmentalists, and the sensationalist End_Page 1686------------------------------ press. Moreover, we have approached the economic limit of our conventional structural oil and gas finding methods, except for a few favored locales. It is impossible to separate the discovery of oil and gas. Reasonable calculations indicate that 75 percent of all the 641 Tcf of natural gas discovered in the Lower 48, whether nonassociated or associated-dissolved, has been discovered (not necessarily developed) incident to the search for oil. All exploratory activity has declined drastically since 1955, until it is now less than at any time since the end of World War II. Since 1955, more and more effort and money have been diverted to foreign exploration and production. This resulted from ever-increasing domestic costs and a continuously deteriorating political climate for oil and gas activity. As the excess oil producing capacity in this country diminished, those countries with excess capacity were quick to take advantage of the situation. Declining discoveries of natural gas lie at the root of the energy crunch. Whether or not increased incentives to spur exploration and drilling, offered at the eleventh hour, will forestall shortages in the next 3 to 5 critical years is highly problematical. The oil and gas industry has no reason to apologize or take the defensive. Studies by the Chase Manhattan Bank indicate that less than 4 percent of its Group's revenue comes from the sale of dry natural gas at the wellhead. Moreover, the independent operator, so important in discovering oil and gas in this country, is being forced out of the industry by adverse government regulation and political interference. The First City National Bank's studies of annual yield on stockholders' equity clearly refutes charges of both excessive earnings and monopoly. It would appear that a group of ultra-liberal congressmen and much of the press would rather see the consumer dependent on foreign sources of energy, which not only are far more expensive but also jeopardize our national security, than see a viable healthy domestic industry with adequate excess productive capacity to meet any emergency. End_of_Article - Last_Page 1687------------