STUDY SEES U.S. GAS RESOURCE BASE STEADY DURING 1990-92

The Potential Gas Committee (PGC) reports the U.S. gas resource base has held steady the past 2 years.

The group estimated the resource base, including proved reserves, at 1.019 quadrillion cu ft, down only 1% from the volume PGC reported 2 years ago.

It noted that when production of about 35 tcf during the last 2 years is factored in, the resource estimate represents a net increase of the nation's gas resource since the last report.

PGC consists of more than 170 volunteer geologists and petroleum engineers who function independently but with guidance and technical assistance of Colorado School of Mines' Potential Gas Agency (PGA). The latter receives financial support from the American Gas Association.

THE FIGURES

PGC estimated the most likely size of the gas resource contained in conventional reservoirs is 717 tcf, coalbed methane gas is another 135 tcf, and proved reserves are 167 tcf for a total of 1.019 quadrillion cu ft, compared with 1.033 quadrillion cu ft in the last report.

It said, "Changes from 1990 to 1992 were primarily due to a transfer of gas resources associated with existing fields to proved reserves in the Gulf Coast and Rocky Mountain areas.

"The coalbed methane resource was reduced primarily due to unfavorable drilling results in the Black Warrior basin. However, development of this resource in the San Juan basin resulted in creation of significant proved reserves."

PGC's estimate of 1.019 quadrillion cu ft is 58 times current annual production. But it noted the study focuses on resources, not deliverability.

LIMITATIONS

John Curtis, PGA director, said the estimate does not assume a schedule for discovery and production of future gas supply. The PGC estimates are base line estimates in that they attempt to provide a reasonable appraisal of the total U.S. gas resource potential.

PGC explained it does not estimate gas resources at depths below 30,000 ft onshore or for gas fields in water deeper than 1,000 m except for the Gulf of Mexico.

It said probable resources are associated with known fields and are the most assured of potential supplies, based on substantial geologic and engineering data.

Possible potential resources exist outside known fields but are associated with a productive formation in a productive province, such as a projection of a producing trend.

Speculative resources, the most nebulous category, are expected to be found in formations or provinces that have not yet proven productive.

The study includes areas that Congress might have placed off limits to drilling, such as wilderness areas onshore or certain offshore areas.

Curtis said, "We do not exclude resources due to political considerations."