Gas Hydrate An Emerging Resource for Americas Energy Future Art Johnson Hydrate Energy International

Natural Gas is a Critical Component of U.S. Energy Supply Total 2008 U.S. Gas Demand: 23.9 TCF

From: Dept. of Energy Statistics US Natural Gas Consumption Forecast to 2030

What is Gas Hydrate? Gas Hydrate is a crystalline solid composed of water and gas. Methane is the most common hydrate-forming gas, but gas hydrates can form from ethane, CO 2, propane, and other gases. One volume hydrate typically contains about 160 volumes methane gas. Stable at low Temperature and high Pressure Occurs abundantly in nature –In continental margin sediments and Arctic permafrost

Global Carbon Distribution ? ? ? ? Total amount is not known with certainty, but is enormous

Arctic sandstones with infrastructure (~10s of Tcf) Arctic sandstones away from infrastructure (100s of Tcf) Deepwater sandstones (1000s of Tcf) Deepwater permeable, non-sandstone (unknown) Seafloor mounds, etc. (unknown) Deepwater, low permeability (100,000s of Tcf) Reserves (200 Tcf) Res. growth & undiscovered (1,500 Tcf) Remaining unrecoverable (unknown) U.S. Gas Resource Base Only a fraction of gas hydrate deposits have commercial potential – but the resource base is still huge Gas HydrateOther Gas Resources

Challenges to Commercial Development Identifying deposits where hydrate is concentrated and has resource potential Establishing commercial viability Establishing environmental impact assessment protocol

Production Scenarios Gas Hydrate is a stable solid at low temperatures and high pressures. The primary methods for producing natural gas from hydrate are: Depressurization Heating Chemical Exchange (with CO 2 ) These methods involve technological and economic challenges

Highlights of U.S. Hydrate Program North Slope of Alaska – Joint industry, university, government program led by BP drilling program confirmed exploration model. Confirmed producibility. Long-term production test planned for CO2 sequestration test planned for 2010.

MethaneCO 2

Highlights of U.S. Hydrate Program Gulf of Mexico 2008 MMS Assessment: Mean estimate of 6,717 TCF in sandstone reservoirs April, 2009 Drilling program led by Chevron logged hydrate-bearing sands.

Results of Recent International Programs Canada – Successful 2008 Arctic production test at limited scale. Japan – Extensive drilling programs. Moving forward with plans for production test by India – Extensive 2006 drilling program. China – Initiated drilling program in 2007 S. Korea – Initiated drilling program in 2007 Significant U.S. Collaboration

Conclusion With adequate funding, by 2015 the United States will be able to determine: 1. The scale and production methods for economically- recoverable Arctic gas hydrate 2. The scale of the technically-recoverable resource from marine gas hydrate 3. The environmental impact of hydrate gas production and hydrate's role in the environment This is an important step to ensure Americas energy security – a transition to renewables