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

Energy Economics
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Abstract

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, $CDN2005 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 $CDN2005 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 $US2008 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. ?? 2009 Elsevier B.V.
Publication type Article
Publication Subtype Journal Article
Title Preliminary report on the commercial viability of gas production from natural gas hydrates
Series title Energy Economics
DOI 10.1016/j.eneco.2009.03.006
Volume 31
Issue 5
Year Published 2009
Language English
Larger Work Type Article
Larger Work Subtype Journal Article
Larger Work Title Energy Economics
First page 815
Last page 823
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