USGS sees 18-32 tcf recoverable in NPR-Alaska

By OGJ editors
HOUSTON, May 5
– An updated economic analysis indicates that 18 tcf of undiscovered gas are economically recoverable from the National Petroleum Reserve in Alaska and adjacent waters when the market price is $8/Mcf or more and 32 tcf is economically recoverable at $10/Mcf or more if a pipeline were built.

The same analysis found that 273 million bbl of undiscovered oil are economically recoverable at $72/bbl and 500 million bbl are economically recoverable at $90/bbl. The estimates are based on mean undiscovered resources and don’t include the discovered but undeveloped oil accumulations in the northeastern NPRA.

The US Geological Survey economic analysis is based on a 2010 USGS resource assessment that determined how much undiscovered, conventional oil and gas in the NPRA is technically recoverable. These reports provide updates from the USGS 2003 economic analysis and 2002 resource assessment of the NPRA.

Technically recoverable resources are those that could be potentially produced using current technology and industry practices. Economically recoverable resources are those that can be sold at a price that covers the costs of discovery, development, production, and transportation to the market.

The USGS said the economically recoverable oil estimates are dependent upon gas exploration in the NPRA, meaning that it is assumed the oil would be found in the process of looking primarily for gas.

No pipeline exists to transport gas from the Alaska North Slope, so the assessment assumes a 10-20-year delay between discovery and production in the NPRA.

The different market prices quoted for the same resource are because some accumulations are relatively easy to find and produce while others are not and therefore cost more.

USGS scientist Emil Attanasi, lead author for the assessment, said, “USGS estimates are based on 2010 costs and technology, and these results could change over time as they are dependent on multiple factors.

“For example, USGS economic recoverability estimates could vary in the future depending on the timeframe and costs to construct a gas pipeline to the NPRA, technological advances that make resource extraction and development easier and less expensive, and fluctuating market prices for oil and gas.”

The amount of oil that could be economically developed is far less than what the 2003 analysis concluded. One reason for the reduction is reduced volumes of technically recoverable oil based on recent NPRA exploration drilling which found gas rather than oil.

Related Articles

Gas price uncertainty could defer projects, Niko says

11/17/2014 Niko Resources Ltd., Calgary, says uncertainty regarding natural gas price premiums in India could cause deferral of development of certain discove...

What's sustainable?

11/17/2014 Sustainability is eternally important and perpetually enigmatic. It's like justice: widely seen as embodying transcendent value yet defined in disp...

More climate leaders

11/17/2014 Presidents Barack Obama of the US and Xi Jinping of China asserted international leadership in the politics of climate change by announcing on Nov....

PwC: US oil, gas transaction value hits 10-year high in 3Q

11/17/2014 Driven by a rise in billion-dollar deals, midstream activity, and interest in upstream shale plays from foreign buyers, mergers and acquisitions in...

Watching Government: Looking beyond transparency

11/10/2014 More transparency is essential to improve resource governance, speakers suggested at a Nov. 4 Brookings Institution discussion. But much more is ne...

'Down-and-dusty' in Wyoming

11/03/2014 Political campaign strategists emphasize the importance of an effective "on-the-ground" operation in bringing supporters to the ballot bo...

Continental testing Springer shale potential

11/03/2014 Four delineation wells operated by Continental Resources Inc. in Grady County, Okla., confirm potential of the Mississippian Springer shale in the ...

China reviewing oil relationships with Sudan, South Sudan, researcher says

10/27/2014 The Chinese government and China National Petroleum Corp. are reviewing their relationships with Sudan and South Sudan following years of growth th...

Marathon Oil sees promise in Oklahoma's Scoop, Stack plays

10/21/2014 Marathon Oil Corp. is using extended-reach laterals to improve initial production rates in the emerging South-Central Oklahoma Oil Province (Scoop)...

White Papers

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Increase Equipment Uptime Through Robust Enterprise Asset Management

Whether you operate in the Upstream Drilling and Exploration sector, the Midstream distribution sector...
Sponsored by

Continuous Improvement for Maintenance with Robust Reporting and Analytics

You should have real-time, anywhere access to more relevant and comprehensive data to help manage and ...
Sponsored by

Enterprise Asset Management Solution for Movable Assets in the Oil & Gas Industry

Drilling and exploration companies face several challenges in effectively managing assets both offshor...
Sponsored by

Supporting HSE Needs for Oil & Gas Through Effective Asset Management Practices

The Oil & Gas industry is constantly being challenged to find, extract and deliver cheaper an...
Sponsored by

Sesam for subsea design analysis

With the exponential growth in the subsea sector, a new set of challenges now face the industry. Mostl...
Sponsored by

Is the gas delivery system you’re looking at able to meet your power generation needs: a hydraulic engineer’s perspective

The hydraulic characteristics, and system response to demands and supplies, of natural gas pipelines a...
Sponsored by

Available Webcasts



Optimizing your asset management practices to mitigate the effects of a down market

When Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST



On Demand

Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected