That Mr. Laherrere guy again? I want some of what he's smoking!J wrote:That's because the US had a big discovery spree in the late 1970's, and those discoveries hadn't yet been added to the proven reserves.
<snip graph>
Looking at the way he has the area under both curves near equal, etc, and looking at the location of 2010 on his graph, we are supposed to be at next to nil natural gas reserves. We would be running out about now, in the midst of a crash with futures prices zooming up. But that's not happening in reality. Does he really think the industry is putting billions into expanding natural gas powerplants right now because all their experts are ignorant fools who'd choose dependence on a fuel with (in his world) nil supply left, instead of coal?
Now to get more specific, on how his chart is utterly screwed up:
His chart has a plot of discoveries. But it is not accurate. Cumulative past discoveries can not possibly be less than cumulative past production (obviously, since you can't produce an unit of natural gas without discovering its field first). Also, cumulative discoveries by 2010 can not possibly be less than cumulative production pre-2010 plus remaining reserves in 2010. His chart is for all of North America and Mexico from the year 1900 on. Over that region, cumulative production of natural gas up to 2010 was about 1320 Tcf (primarily U.S. plus some Canada, little in Mexico).
Remaining U.S. reserves, in terms of technically (affordably) recoverable natural gas resources, were 1750 Tcf in 2007 (EIA data). As will be shown with references later and as implied in the U.S. Secretary of Energy's statements of last month, actually recent 2009-2010 discoveries and drilling improvements have raised that above 2000 Tcf already. Of course, Canada and Mexico have some too, but, even neglecting them to save time, there's a relevant point to observe.
Considering 1300 Tcf past consumption, then 2000+ Tcf reserves left today, cumulative natural gas discoveries up through 2010 have thus amounted to 3300+ Tcf.
On his graph, regarding area under the curves, each one of the rectangles in the graph's grid corresponds to 50 Tcf (being 10 years horizontal and 5 Tcf/year vertical). So thus the area under his discovery curve should be the equivalent of 66+ rectangles in area, if it were to match the 3300+ Tcf figure that it must.
As can be seen very easily looking at his graph, the area under his discovery curve isn't remotely close to that, not even half of the actual figure. In short, his graph is junk. Whether by accident or intentionally, it depicts the situation wrongly and would merely mislead people. I'd trust the U.S. Geological Survey or EIA reserve data and production projections over him any day.
That's a 2004 article. My figures are rather up to date 2007-2010 data. Besides, that's much less than the huge 2009-2010 upwards revisions for the overall U.S. natural gas resource base, shown a bit later.J wrote:And then this happens
The approximate amount of undiscovered resources actually can be somewhat estimated. For instance, if almost all resources were already found, we'd expect to see few new reserve additions, rarely finding anything new. Conversely, however, a high rate of new discoveries implies not having already fully surveyed more than a portion of the countless cubic kilometers underground yet. Of course, this is speaking in merely qualititative terms, when the experts at the EIA rather do a much more sophisticated mathematical investigation and have other methods.One could arguably count some of the inferred reserves towards the amount which is recoverable, but not undiscovered reserves since they're only thought to exist and haven't been surveyed, drilled, nor proven in any way.
The EIA's estimate of 2007 for affordably recoverable natural gas resources (1750 Tcf reserves versus 23 Tcf/year current consumption) really was conservative. If they were going off the deep end of optimistic speculation, they'd be counting more of the 10000+ Tcf of other U.S. natural gas resources (the resource pyramid map again) which are more questionable depending on future market prices and technological refinements.