Unconventional Gas to Lead the Way as Gulf Output Falls

Schlumberger – Gas trapped between sand particles and under hard rock will be the next place to drill for the commodity while offshore Gulf of Mexico production dwindles, analysts and gas executives said Tuesday at an oil and gas conference in Denver.

Natural gas is scarce in “conventional” gas wells and companies who want to maintain an edge in gas production will have to fracture shale rock to extract the gas that lies beneath. Gas stranded between tight sands in Wyoming will also be taken out and brought to the market, executives said.

“Unconventional gas will eventually make up way over half the reserve base,” said Mark Urness, director of oil services research with Calyon Securities in New York, speaking on the sidelines of The 11th Oil and Gas Conference hosted by Enercom in Denver Tuesday.
Schlumberger