American Oil and Gas Reporter - November 2019 - 32

U.S. Gas Resource Base Hits 3.374 Qcf
GOLDEN, CO.-The United States
possesses a total mean technically recoverable natural gas resource base of 3.374
quadrillion cubic feet (Qcf) as of yearend 2018, according to the Potential Gas
Committee's latest biennial assessment.
This is the highest resource evaluation
in the committee's 54-year history, PGC
points out, exceeding the previous high
assessment from year-end 2016 by 557
trillion cubic feet. This also is the largest
two-year increase in absolute resources
between evaluations in the PGC's history,
the committee adds, saying the increase
results from reassessments of shale gas
resources in the Atlantic and Mid-Continent areas, and conventional and tight
gas in the Mid-Continent and Rocky
Mountain areas.
"This seventh consecutive record-high
resource evaluation by the PGC confirms
that the United States has an abundance
of natural gas. These resources are present
in various reservoirs both onshore and

offshore," says Alexei V. Milkov, professor
of geology and geological engineering
and director of the Potential Gas Agency
at the Colorado School of Mines. PGA
provides guidance and technical assistance
to the PGC.
PGC says its year-end 2018 assessment
of 3.374 Qcf includes 3.218 Qcf of gas
potentially recoverable from "traditional"
reservoirs (conventional, tight sands, carbonates, and shales) and 157 Tcf in
coalbed methane reservoirs.
Compared with year-end 2016, traditional resources increased by 559 Tcf
(21%), while coalbed methane resources
decreased by 2 Tcf, PGC reports. Table
1 summarizes the national resource assessment for year-end 2018 and acknowledges changes from the year-end 2016
assessment.
Gas resource assessments in Table 1
are reported as probable, possible and
speculative. For each category, PGC says,
a minimum, most likely and maximum

TABLE 1
Resource Category

Mean Values (rounded),
trillion cubic feet
2018

2016

Change from
2016 to 2018
Tcf

%

Traditional Gas Resources:
- Probable resources (current fields)
- Possible resources (new fields)
- Speculative resources (frontier)
- Total

1,120
1,376
722
3,218

994
1,057
608
2,658

Coalbed Gas Resources:
- Probable resources (current fields)
- Possible resources (new fields)
- Speculative resources (frontier)
- Total
Grand Total Potential Resources

15
47
96
157
3,374

15
48
96
159
2,817

-2
+557

-1
+20

464*

324*

+140

+43

3,838

3,141

+697

+22

Proved gas reserves (EIA)
U.S. Future Gas Supply

+559

+21

Geographical Distribution

* Year-end 2017

TABLE 2
Assessment Area

Mean Values (rounded),
trillion cubic feet
2018

Total Traditional Gas Resources:
- Atlantic
- Mid-Continent
- Gulf Coast (incl. Gulf of Mexico)
- Rocky Mountain
- Alaska
- Pacific
- North Central
Total U.S. Traditional Gas Resources

1,311
615
515
502
194
54
19
3,218

32 THE AMERICAN OIL & GAS REPORTER

2016
1,047
370
538
437
194
54
19
2,658

volume is assessed in each of 90 onshore
and offshore provinces in the lower-48
states and Alaska. The category and total
mean values shown in Table 1 were computed by statistical aggregation of the minimum, most likely and maximum value
distributions for each category and for all
provinces combined, which PGC says allows for more direct comparison with assessments made by other organizations.
PGC notes that it assesses technically
recoverable resources and does not consider a specific price or schedule for the
discovery and production of natural gas.
PGC's estimates are in addition to the
U.S. Energy Information Administration's
estimates of proved gas reserves.
When PGC's assessments of technically
recoverable resources are combined with
EIA's latest determination of proved reserves of 464 Tcf as of year-end 2017),
PGC says the future U.S. gas supply stands
at a record 3.838 Qcf, an increase of 697
Tcf (22%) over the previous evaluation.
"More drilling and continuous improvements in completion and stimulation
technologies lead to better delineation
and characterization of U.S. gas resources,
especially in shale and tight reservoirs,"
Milkov highlights. "The record gas resources assessed by the PGC, in addition
to record reserves and production reported
by EIA, display a picture of strong natural
gas supply in the United States for many
years to come."

Change from
2016 to 2018
Tcf
+264
+245
-22
+65
0
0
0
+560

%
+25
+67
-4
+15
0
0
0
+21

PGC reports potential resources at the
national level as well as for seven geographical areas and 90 geological provinces.
The Atlantic region ranks as the country's richest resource area with 41% of
total U.S. traditional resources, PGC reports, followed by the Mid-Continent
with 19%, the Gulf Coast (including the
Gulf of Mexico) with 16% and Rocky
Mountains with 16%. According to PGC,
changes in the total assessment from
year-end 2016 to year-end 2018 arose
primarily from the evaluation of recent
drilling, well-test and production data
from those areas.
Table 2 compares the year-end 2018
area-level assessments of traditional gas
resources (conventional, tight sands, carbonates and shale reservoirs) with yearend 2016.
The largest volumetric gains (264 Tcf
or 25%) were reported in the Atlantic
area, PGC says. It says the major reason
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