Unconventional Gas Resources (4f80c854-eb28-4c25-9c81-c803ef2a0bd6)

Introduction The gas shortage is going to be with us for some time to come. If we can set aside political and industry rhetoric (along with subjective personal opinions), we still are confronted by two serious "facts of life": (1) for almost a decade the U.S. has been consuming natural gas at a greater rate than we have been finding new reserves; and (2) there is a finite amount of natural gas present within the earth&apos;s crust. Much of the known and easily exploitable sources of gas (the so-called "conventional" sources, such as the high permeability sand reservoirs of the Tertiary sequence along the Gulf Coast) already have been developed; their production is declining rapidly. The total producible reserves from conventional gas reservoirs amount to only 216 Tcf, less than an 11-year supply. However, several large potential resources of natural gas remain to be developed. These "unconventional sources" have low permeability and/or peculiar producing characteristics. The DOE program for development of these unconventional sources of gas is called the enhanced gas recovery (EGR) program. The primary goal of this program is to provide a data base of resource characterization and production technology that will lead to commercial development. DOE will encourage and support industry participation in developing and demonstrating technologies needed to reach this goal. Unconventional Resources Four major unconventional resources of gas have a high potential for commercial development. There are other unconventional sources (such as gas hydrates) that are too poorly defined to warrant a major development thrust at this time. The four unconventional sources of gas currently included in the EGR program are: 1. The carbonaceous shales of Devonian age in the Appalachian, Illinois, and Michigan sedimentary basins are the targets of the Eastern Gas Shales Project (EGSP). 2. The low permeability, low porosity so-called "tight" gas sandstones of the Upper Cretaceous/Lower Tertiary in the Rocky Mountain areas constitute the resource target for the Western Gas Sands Project (WGSP). 3. The free methane trapped in coal beds of both the eastern and western U. S. constitute the Methane from Coal Beds Project (MCBP). 4. The abnormally high pressured, high-temperature saltwater aquifers of the Texas-Louisiana gulf coast are targets of the Geopressured Aquifer Project (GPAP). Basic implementation strategy for these EGR projects involve (1) assessing and characterizing the resource potential of the resource; (2) conducting cost-shared field testing with industry to improve, develop, and demonstrate various stimulation and production technologies; (3) coordinating EGR activities within DOE and with other federal agencies (such as the Bureau of Mines) to minimize duplication; and (4) aiming all projects toward commercial development of the gas resources. EGSP What type of "geological animal" is the EGSP dealing with? While gas undeniably is related to the occurrence of natural fracture systems within the shale, the overall producing mechanism and precise location of fractured, gas-bearing locales within each basin is still poorly understood. By developing reliable resource characterization techniques and applying effective stimulation technologies we intend to elevate the Devonian shale from the status of a potential gas resource to that of a proven gas reserve. Once we have done this the private sector can take over the large-scale commercial development of the Devonian shale gas resource. WGSP The second largest project (both in terms of complexity and level of funding) is the WGSP. The primary targets for this project are the low permeability (< 1 md) gas sandstones of the Piceance, Uintah, and Greater Green River basins and the Northern Great Plains Province. Project success in these four primary geologic locales will permit investigating additional low permeability sandstones in 16 other sedimentary basins. It appears that the only practical means of increasing permeability and resultant flow rates from these sandstones lies in the use of massive hydraulic fracturing techniques. Unfortunately, it is still too early to design such jobs with predictable results. MCBP The MCBP is to be involved in producing and utilizing methane derived from coal beds. The coal, like portions of the Devonian shale, is impermeable, highly fractured (termed "cleat" by