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

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, $CDN 2005 12/Mscf is the lowest gas price that would allow economically...

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Bibliographic Details
Published in:Energy economics 2009-09, Vol.31 (5), p.815-823
Main Authors: 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
Format: Article
Language:English
Subjects:
Applied sciences
Economic data
Economic security
Energy
Energy economics
Energy prices
Energy Security
Exact sciences and technology
Fossil fuels and derived products
Gas
General, economic and professional studies
Hydrate Economics
Natural gas
Natural Gas Hydrates
Natural Gas Hydrates Energy Security Reservoir Simulation Hydrate Economics Uncertainty
Natural gas prices
Natural gas supply
Power generation
Power supply
Reservoir Simulation
Reservoirs
Simulation
Studies
Uncertainty
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Summary: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, $CDN 2005 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 $CDN 2005 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 $US 2008 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.
ISSN:0140-9883
1873-6181
DOI:10.1016/j.eneco.2009.03.006