“Outside the United States, Canada, and the United Kingdom, almost all wholesale natural gas is sold under long-term contracts. The price of natural gas within the contracts is commonly determined by a formula that links the natural gas price to the price of crude oil or some oil-based product.” In those countries the price of natural gas is generally a lot higher than spot prices in the USA. Quote from the Congressional Research Service report.
The Congressional Research Service has a new report that addresses the international movement of natural gas. About 70% of the natural gas produced is consumed in the same country. This leaves 30% of all gas production moving via international trade. This trade occurs through pipelines and LNG shipments. The map below shows the global pattern of the international natural gas trade.
Lawrence Livermore National Laboratories has a very interesting chart that maps energy sources such as natural gas, solar and coal with energy uses such as electricity generation, residential, transportation, etc. Check it out.
A rock layer below the Marcellus Shale could prove to be another incredible source of natural gas. The Utica Shale is thicker, more geographically extensive and has already proven its ability to support commercial production.
The West Virginia Geological and Economic Survey has published a one-page summary sheet for drilling activity in the Marcellus Shale. The map shows the location of completed and permitted wells, Marcellus Shale isopach lines and major fold axes.
A presentation on Worldwide Gas Shales and Unconventional Gas posted on the Advanced Resources International website shows a preliminary estimate of 140 trillion cubic feet of recoverable gas from shale.
“An overlooked cause of the economic recession in the United States is a decade long decline in the quality of the nation’s energy supply, often measured as the amount of energy we get out for a given energy input, says energy expert Carey King of The University of Texas at Austin.” Quoted from the University of Texas at Austin press release.
Note: Although the “energy quality” concept is interesting, the long-term trends for coal and natural gas really got our attention.
The Energy Information Administration has published a map that shows the increase in wet natural gas proved reserves by state for 2008-2009. There were huge increases for the states with large shale gas plays such as Marcellus Shale, Haynesville Shale, Fayetteville Shale, Eagle Ford Shale and the Barnett Shale.
An article on the St.LouisToday website explains how major oil companies are buying into the natural gas business and what might be motivating these investments.
A study by Southern Methodist University of downhole temperatures in over 1000 oil and gas wells has revealed an enormous geothermal heat source in eastern West Virginia. Temperatures at about 5 KM are hot enough to produce geothermal electric power. The most valuable lands might be in stream valleys over areas of shallowest maximum heat – combined with distance to large consumer populations. This could be another game-changer if the rocks at 5KM can be fracked and allow steam to circulate over time. Image by SMU.
A world map showing natural gas production on a country-by-country basis. View at Geology.com.
The Pennsylvania Department of Environmental Protection has regularly-updated maps of oil and gas drilling activity available on their website. They also have maps of permits issued and wells drilled with separate tabulations for the Marcellus Shale.
Over the past decade the use of renewable energy is becoming more important to people, industry and governments. Why? Renewable energy resources are not depleted, they are becoming less expensive, and they have a softer environmental impact.
The price of natural gas is not uniform across the United States. Instead, the price is determined by supply, demand, proximity to production, regulatory environments and the cost of natural gas that is flowing in the local distribution system. More at Geology.com.
