New Assessment Shows Record Levels of U.S. Natural GasPosted by Committee Press Office on April 10, 2013
Over the last decade, Americans have witnessed a drastic increase in natural gas production due to breakthroughs in drilling technologies such as hydraulic fracturing or “fracking.” This production has lead to economic growth, job creation, and most importantly decreased dependence on foreign sources of natural gas. But, exactly how much natural gas does the United States have? A report released this week by the American Gas Association examines that question, and the answer may surprise you.
The American Gas Association (AGA), in coordination with the Potential Gas Committee (PGC), released a report this week outlining technically recoverable gas resources in the United States. The report released its highest assessment in the history of the PGC. According to the assessment, the United States possesses a potential of 2,384 trillion cubic feet (Tcf) of natural gas, up nearly 25% from 2010 estimates. Based on 2012 consumption rates in the United States, that’s enough natural gas to power U.S. homes for 581 years, commercial and industrial users for 240 years, or every single current end user for over 94 years.
Just last week, a study was released showing how much BLM’s in-consideration rule on hydraulic fracturing would cost each well on public lands. According to researchers at the Oklahoma City University, the red tape created by BLM’s rule could cost as much as $175,000 per well or $370 million annually. Due to these regulatory costs, producers may be likely to leave federal lands in search of more friendly state-regulated gas plays. This means less royalty revenue for states and Federal taxpayers, and more importantly, loss of high-paying energy jobs. The Natural Resources Committee has conducted oversight over the BLM rulemaking process and will continue to monitor the Administration’s actions as the rule is finalized.