Don-n-ABQ

How Much Natural Gas Remains in the USA?

A couple more thoughts:

1) Lets get large government (federal, state, county, and city) fleets to mandate the use of CNG and LNG with electric first before looking at the general public's use of it. It is easier to install the fueling apparatus at a government yard than it will be for the retail consumer, both physically and through all of the red tape and discussions that it will cause. Then move to very large commercial fleets, like UPS and FedEx. Do this in steps please.

2) If you listen to or quote T. Boone Pickens, remember where he is coming from. He is self-serving and wants the price of NG to go to $25.00. If he didn't have an interest in NG or wind or water, I might take him more seriously. But, lets face it, he wants to make money, lots of it. And that is fine, but don't forget that part of it.

How Much Natural Gas Remains in the USA?

Are you sure that is what you want?

At $2.00 to $3.00 do we really want the District of Columbia opening up new areas of drilling?

I bet if you ask guys like Pickens they might say something different right now?

Even if Washington said that drilling would be allowed in offshore Carolina, at this price, would anybody do it?

Shouldn't we focus on demand right now and not supply?


On Oct 05 09:43 PM OilFinder wrote:

>Keep your fingers crossed that Obama and Salizer allow drilling off the coast of the Carolinas. I bet there's lots of goodies down there.

How Much Natural Gas Remains in the USA?

Mark,

How much did that well cost to drill and maintain?

How much would it cost to drill that well today?

I already know the answers to these questions, but you apparently do not. This well was very profitable. Check it out and get back to the readers.

Also, some people have already touched on this: I am more interested in the price at which it is profitable to explore for and produce natural gas. You left that out of your article and to me, it is the most important part. If some of these unproven and undiscovered reserves cost X, Y, and Z, and we are at A, this needs to be taken into account.

We need an article that shows how of the much of the unproven and undiscovered NG is profitable at $2.50, $5.00, $10.00, and $20.00. That would really be an article that is helpful.

In searching the Internet I came across a 2008 article by Allen Brooks, Managing Director of Parks Paton Hoepfl & Brown. In this article he tries to compare rig counts from the 1950s, 1970s, and 2000s. I never finished reading the article because I instantly found a hole in his thesis large enough to park a rig on:

You can't compare apples-to-apples rigs of 2009 with those of 1949 or even 1979.

We will never see the rig count numbers of the 1950s because one rig now can out drill and be moved faster than 10 of 1955. Mr. Brooks never even brings up the differences in technology that have occurred over the years. When comparing the past, people like Mr. Brooks and you, must take into account the changes that have occurred over the intervening period. There are things being done with drilling now that would have been laughed at in 1955 or even 1985 (especially offshore).

But, back to my other thought: How much will it cost to get it out of the ground and to my house. That is what I really want to know.


On Oct 04 12:54 PM Mark Anthony wrote:

> "In 1969 GHK, and its partners drilled a well over 24,000 feet deep
> in the Anadarko Basin. The well has produced 21 Bcf of natural gas
> (the equivalent of 3.6 million barrels of oil) and is still producing
> today. "
>
> That's an very expensive well to drill, 24000 feet deep. Over the
> 40 years what investment return did it bring to the investor? 21
> BCF natural gas is 21 million TCF, at roughly $2 or less per TCF
> averaged over the past 40 years, it brings in a revenue of $42M.
> The oil equivalent of 3.6M barrel, if averaged at about $15 per barrel
> in the 40 years, is roughly $54M. The initial drilling cost, inflation
> adjusted, plus the maintenance and operation cost over the 40 years,
> must far exceed the product revenue over the 40 years. This is an
> absolutely losing investment.