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Preliminary report on the commercial viability of gas production from natural gas hydrates

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Author Info
Walsh, Matthew R.
Hancock, Steve H.
Wilson, Scott J.
Patil, Shirish L.
Moridis, George J.
Boswell, Ray
Collett, Timothy S.
Koh, Carolyn A.
Sloan, E. Dendy
Abstract

Economic studies on simulated gas hydrate reservoirs have been compiled to estimate the price of natural gas that may lead to economically viable production from the most promising gas hydrate accumulations. As a first estimate, $CDN2005 12/Mscf is the lowest gas price that would allow economically viable production from gas hydrates in the absence of associated free gas, while an underlying gas deposit will reduce the viability price estimate to $CDN2005 7.50/Mscf. Results from a recent analysis of the simulated production of natural gas from marine hydrate deposits are also considered in this report; on an IROR basis, it is $US2008 3.50-4.00/Mscf more expensive to produce marine hydrates than conventional marine gas assuming the existence of sufficiently large marine hydrate accumulations. While these prices represent the best available estimates, the economic evaluation of a specific project is highly dependent on the producibility of the target zone, the amount of gas in place, the associated geologic and depositional environment, existing pipeline infrastructure, and local tariffs and taxes.

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Publisher Info
Article provided by Elsevier in its journal Energy Economics.

Volume (Year): 31 (2009)
Issue (Month): 5 (September)
Pages: 815-823
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Handle: RePEc:eee:eneeco:v:31:y:2009:i:5:p:815-823

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Web page: http://www.elsevier.com/locate/eneco

For technical questions regarding this item, or to correct its listing, contact: (Heidi Boesdal).

Related research
Keywords: Natural Gas Hydrates Energy Security Reservoir Simulation Hydrate Economics Uncertainty;

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This page was last updated on 2009-12-3.


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