Natural Gas Supply
Various advanced drilling techniques such as horizontal drilling, multilateral, extended reach drilling and complex path drilling are used in natural gas production. Technology is a boon to the natural gas industry as production level increases and it is easy to tap natural gas from unconventional reserves. In the year 2008 production of natural gas increased by nine percent . The natural gas supply in the United States has increased due to the implementation of the advanced technique such as horizontal drilling. With the help of this technique natural gas deposits that cannot be reached vertically can be extracted as this particular technique converts the well bore from vertical surface to horizontal one. This horizontal drilling technique was first used in Barnett shale near Dallas.
Unconventional natural gas reserves play
a major role in contributing towards the growth of natural gas production in the United States.
Though it is expensive for smaller firms to invest in exploring and drilling the most preferable natural gas out of the
reserves, advanced drilling techniques and rise in gas prices prove to be affordable and economical for more production,
eventually leading to increased natural gas supply. It is estimated that U.S production will increase from
forty seven percent to fifty six percent in the year 2030 due to the demand for natural gas.
In comparison to this fossil fuel obtained from conventional formations, natural gas obtained from shale formations
proves to be more efficient. As technology improves, there is a downward pressure on the prices for natural gas.
In 2006, more natural gas wells were drilled when compared to those drilled in 2004.United States holds vast unexplored reserves in both onshore as well as offshore areas. Government and financial issues are great barriers for the growth in natural gas supply. Natural gas reserves are not being depleted but there are federal lands that have natural gas deposits, which cannot be accessed without the government's consent. Transferring natural gas from the place of production to the place of final consumption is expensive especially when it comes to exporting it via pipeline. Expanding the pipeline infrastructure would be helpful in meeting the natural gas demand. If proper storage facilities are not available then natural gas supply gets affected.
The old natural gas wells will soon get depleted. Hence there arises a need for exploring more reserves for the benefit of the nation, as consumers are highly dependent on natural gas for meeting their basic needs. Government should change its policies and permit companies to access the unexplored areas. This would benefit both the natural gas producers and consumers. With the increased production, future demand for natural gas can be easily met. Exploring and drilling are tedious jobs and it is time consuming. Sometimes it takes nearly ten years for natural gas to be explored, drilled and produced. It is imperative that natural gas supply is available at the right time to the consumers. More LNG facilities are required to ensure a stable supply of natural gas in order to meet the growing demand.