Comparative Economics of Investment in Conventional Deep and Tight Gas Resources

摘要

Comparative economics of conventional, deep, and tight gas development are discussed in this report. Although it is not likely that the cost of gas will decrease, under contemporary economics the vast potential of tight (low permeability) and deep (below 15,000 feet) gas sources can help meet America's needs for three reasons: favorable price differentials under the Natural Gas Policy Act of 1978 encourage development of gas from tight and deep formations; newly discovered tight and deep gas fields are likely to be larger than newly discovered conventional fields; and risks associated with finding new fields, as evidenced by the exploratory dry hole rate, may be lower for tight and deep gas than for conventional gas. (ERA citation 07:042341)