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Title: Utilization Of Gas Reserves
Author: James P. Lewis
Source: American Gas Association 1980
Year Published: 1980
Abstract: The utilization of remote gas reserves is of renewed interest today because we have soaring prices for energy in general and natural gas in particular. Similarly, products derived from gas are also experiencing rapidly rising prices with major dislocations in feedstock markets, both from a supply and price standpoint. Remote gas discoveries were hardly considered as reserves when the market was 25 cents per Mcf. At one dollar, they became marginal. The question then hinged on the cost of the processing and transportation costs. If there was any positive net back to the resource owner, a project could be Considered. The project costs were controlling. In todays 4, 5 or 6 dollar market for incremental gas supplies, the project costs are no longer the controlling factor, but the quasi-free market forces begin to come into play. Inherently, those once marginal reserves are becoming more attractive.

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