Santos Predicts Growth in Unconventional Gas Supplies

Unconventional sources of natural gas, such as coal seam and shale, are likely to increase their contribution to supplies of the fuel, said Santos Ltd., Australia’s third-biggest oil and gas producer.

These forms of gas make up about a third of the U.S.’s 24.5 trillion cubic feet of annual consumption and will become more important in Asia, David Knox, Acting Chief Executive Officer of Adelaide-based Santos, said today at an investor briefing. Santos may book its first unconventional gas resources this year, said Rick Wilkinson, vice-president of commercial operations.
Gas demand in eastern Australia may more than double in the next decade, driven by the introduction of carbon trading and the start-up of liquefied natural gas export projects in Queensland state, Santos said. Rising consumption will boost prices, said the company, operator of the Cooper Basin project, Australia’s biggest onshore source of gas.

“This price increase will drive conventional reserves and unconventional resources growth in the Cooper Basin,” Wilkinson said at the investor briefing, which was carried by Webcast. “It’s not just a coal seam gas story. We’ve got a fantastic footprint to take advantage of that.”

Bloombeg