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

Author

Listed:
  • Walsh, Matthew R.
  • Hancock, Steve H.
  • Wilson, Scott J.
  • Patil, Shirish L.
  • Moridis, George J.
  • Boswell, Ray
  • Collett, Timothy S.
  • Koh, Carolyn A.
  • Sloan, E. Dendy

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.

Suggested Citation

  • Walsh, Matthew R. & Hancock, Steve H. & Wilson, Scott J. & Patil, Shirish L. & Moridis, George J. & Boswell, Ray & Collett, Timothy S. & Koh, Carolyn A. & Sloan, E. Dendy, 2009. "Preliminary report on the commercial viability of gas production from natural gas hydrates," Energy Economics, Elsevier, vol. 31(5), pages 815-823, September.
    • Handle: RePEc:eee:eneeco:v:31:y:2009:i:5:p:815-823
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    Cited by:

    1. Lu, Nu & Hou, Jian & Liu, Yongge & Barrufet, Maria A. & Ji, Yunkai & Xia, Zhizeng & Xu, Boyue, 2018. "Stage analysis and production evaluation for class III gas hydrate deposit by depressurization," Energy, Elsevier, vol. 165(PB), pages 501-511.
    2. Wang, Yi & Feng, Jing-Chun & Li, Xiao-Sen & Zhang, Yu, 2018. "Influence of well pattern on gas recovery from methane hydrate reservoir by large scale experimental investigation," Energy, Elsevier, vol. 152(C), pages 34-45.
    3. Chong, Zheng Rong & Yang, She Hern Bryan & Babu, Ponnivalavan & Linga, Praveen & Li, Xiao-Sen, 2016. "Review of natural gas hydrates as an energy resource: Prospects and challenges," Applied Energy, Elsevier, vol. 162(C), pages 1633-1652.
    4. Li, Xiao-Yan & Wang, Yi & Li, Xiao-Sen & Zhou, Shi-Dong & Liu, Yang & Lv, Xiao-Fang, 2024. "Study on the production of gas hydrates and underlying free gas by horizontal well under different directions of hydraulic fracturing," Energy, Elsevier, vol. 290(C).
    5. Chen, Chang & Zhang, Yu & Li, Xiaosen & He, Jiayuan & Gao, Fei & Chen, Zhaoyang, 2024. "Investigations into methane hydrate formation, accumulation, and distribution in sediments with different contents of illite clay," Applied Energy, Elsevier, vol. 359(C).
    6. Riley, David & Schaafsma, Marije & Marin-Moreno, Héctor & Minshull, Tim A., 2020. "A social, environmental and economic evaluation protocol for potential gas hydrate exploitation projects," Applied Energy, Elsevier, vol. 263(C).
    7. Cheng, Fanbao & Sun, Xiang & Li, Yanghui & Ju, Xin & Yang, Yaobin & Liu, Xuanji & Liu, Weiguo & Yang, Mingjun & Song, Yongchen, 2023. "Numerical analysis of coupled thermal-hydro-chemo-mechanical (THCM) behavior to joint production of marine gas hydrate and shallow gas," Energy, Elsevier, vol. 281(C).
    8. Feng, Qian & Liu, Xian-jie & Peng, Zhi-gang & Zheng, Yong & Huo, Jin-hua & Liu, Huan, 2019. "Preparation of low hydration heat cement slurry with micro-encapsulated thermal control material," Energy, Elsevier, vol. 187(C).
    9. Döpke, Lena-Katharina & Requate, Till, 2014. "The economics of exploiting gas hydrates," Energy Economics, Elsevier, vol. 42(C), pages 355-364.
    10. Chen, Xuejun & Lu, Hailong & Gu, Lijuan & Shang, Shilong & Zhang, Yi & Huang, Xin & Zhang, Le, 2022. "Preliminary evaluation of the economic potential of the technologies for gas hydrate exploitation," Energy, Elsevier, vol. 243(C).
    11. Feng, Yu & Qu, Aoxing & Han, Yuze & Shi, Changrui & Liu, Yanzhen & Zhang, Lunxiang & Zhao, Jiafei & Yang, Lei & Song, Yongchen, 2023. "Effect of gas hydrate formation and dissociation on porous media structure with clay particles," Applied Energy, Elsevier, vol. 349(C).
    12. Li, Xiao-Sen & Xu, Chun-Gang & Zhang, Yu & Ruan, Xu-Ke & Li, Gang & Wang, Yi, 2016. "Investigation into gas production from natural gas hydrate: A review," Applied Energy, Elsevier, vol. 172(C), pages 286-322.

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