U.S. Gas Reserves More than Originally Thought

The United States natural gas reserves are about 39 percent more than originally estimated two years ago. The current report estimated that the United States has a total resource base of 1,836 trillion cubic feet of natural gas. T. Boone Pickens said that the future supply cited in the study is the equivalent of almost 350 billion barrels of oil, “about the same as Saudi Arabia’s oil reserves.”

The Gulf coast remains at the top of the nations list, but the largest increases from the assessment came from shale gas which is located in the Appalachian, Arkoma and Fort Worth basins, among others. The report states that shale gas is growing in importance since it accounts for 33 percent of the reserves.

Many experts agree that the report is good news for the industry and for potential users of natural gas, but that demand must increase for the potential reserves to become actual supply. Natural gas between $5 and $6 tends to be regarded as a break-even range for natural gas producers. Shale becomes uneconomical at a price of less than $5, while prices at more than $7 are preferred for growth. Natural gas was traded at $3.80 per million British thermal units at the time this report was published.