1. TPG 4140 NTNU Natural Gas World Wide
Professor Jon Steinar Gudmundsson
Department of Petroleum Engineering and Applied Geophysics
Norwegian University of Science and Technology
Trondheim
August 28, 2013

2. What we know about natural gas …
Environmentally friendly
Widely available in certain regions
Lower in price than crude oil
More difficult to distribute than crude oil
Shale gas has changed the industry
More gas than crude oil produced in Norway
Norway uses very little natural gas
“Petroleum” in Norway means oil and gas
Other aspects?

3. Outline World economy runs on fossil fuels
Associated and non-associated gas
Natural gas has low emissission
Statistics for resources, production and consumption
Reserves and production (BP 2012)
R/P ratio, world, regions, Norway
Trade, gas prices and electricity generation
Golden age of gas (IEA 2010)
Gas grows twice as fast as total energy…

4. Taylor et al. 2012

5. Annual fossil fuel consumption
Bryant, S. (2007), JPT September.

6. Bryant, S. (2007), JPT September.

7. Global primary energy supply

8. Backwith, JPT, November 2011

10. Gas for Heat, Electricity, Chemicals and Fuels
Non-associated gas (from gas reservoirs)
Associated gas (from oil reservoirs)
Unconventional gas
Tight gas (sandstone, needs fracturing)
Shale gas (shale, needs fracturing)
Coal bed methane (biogenic, adsorbed on coal)
Town gas (from coal, H2, CH4, CO2 & CO, historical)
Biogas (modern)

11. Canadian Association of Petroleum Producers 2013

13. Oil Field Johan Sverdrup 1. 7-3. 3∙109 bbl Statfjord 3
Oil Field Johan Sverdrup ∙109 bbl Statfjord 3.5∙109 bbl, Ekofisk 3.1∙109 bbl

14. Gas-Condensate Field Aasta Hansteen, 47 GSm3 Ormen Lange 400 GSm3, Snøhvit 134 GSm3

15. Natural Gas Production Norway 2008
70 % sold, 24 % injected, 3 % fuel, 3 % NGL

16. Canadian Association of Petroleum Producers 2013

17. CO2 Emissions Per Unit of Electrical Energy Produced for Energy Sources17

18. Natural Gas Cleanest Fossil Fuel
Emission of CO2
(in kg CO2/MWh)
1,200
(340%)
Lignite-fired power
850 (230%)
Hard coal-fired power
350
(100%)
Gas-fired CCGT
Source: US Department of Energy (DOE), US Energy Information Administration (EIA) 18 18

19. IEA 2013

20. Statistical Review of World Energy
BP and IEA compile comprehensive data
Oil, Natural gas, Coal, Primary energy BP
IEA
Norwegian Petroleum Directorate

21. Conversions Used in Norway

22. Conversions, Units and Prices
1 Sm3 = 35.3 scf (standard cubic feet)
S = Standard (1 atm., 15 C, in Norway)
M = Mega, G = Giga, T = Tera
Commas ,,, & Periods … (Norwegian vs. English)
MM = Million, B = Billion, T = Trillion
MMscfd = Million standard cubic feet per day
BCM = Billion Cubic Metre (hybrid unit)
TCF = Trillion Cubic Feet
Trillion kWh = 10,000 TWh
QBTU = Quadrillion BTU = 1015 BTU = 1 million billion BTU
BTU (British Thermal Unit) = J (ISO) = kJ
10 $/MMscf = 53 NOK/GJ = 2.1 NOK/Sm3 ($ = 5.6 NOK, 40 MJ/Sm3)
10 €/MWh = 22 NOK/GJ = 0.9 NOK/Sm3 (€ = 8 NOK, MJ = kWh, 40 MJ/Sm3)

24. Proved natural gas reserves at end 2009

25. Distribution of proved gas reserves in 1992, 2002 and 2012
Percentage
BP Statistical Review of World Energy 2013
© BP 2013 25

26. Today’s and Tomorrow’s Reserves
“Today’s global petroleum reserves reflect yesterday’s exploration efforts plus today’s economics and technology in each country. Tomorrow’s reserves depend on worldwide exploration today, advances in technology and future prices”
Bogart & Ebneyousef, SPE 25829, 1993

27. Gas production/consumption by region
Billion cubic metres
Production by region
Consumption by region
BP Statistical Review of World Energy 2013
© BP 2013 27

28. Gas consumption per capita 2012
Tonnes oil equivalent
Source: Includes data from Cedigaz.
BP Statistical Review of World Energy 2013
© BP 2013 28

29. Oil, Natural Gas and Coal in the World

30. Gas reserves-to-production (R/P) ratios Years
2012 by region
History
BP Statistical Review of World Energy 2013
© BP 2013 30

31. Norway R/P=18.2

32. Major gas trade movements 2012
Trade flows worldwide (billion cubic metres)
Source: Includes data from Cedigaz, CISStat, GIIGNL, IHS CERA, Poten, Waterborne.
BP Statistical Review of World Energy 2013
© BP 2013 32

33. Chart of natural gas trade

34. Gas prices $/Mmbtu CIF = Cost, Insurance and Freight 34
BP Statistical Review of World Energy 2013
© BP 2013 34

35. Coal segment of electricity generation

36. Taylor et al. 2012

37. Annual carbon dioxide emissions from fossil fuels

38. Taylor et al. 2012

39. Taylor et al. 2012

41. Fatih Birol, International Energy Agency
23 June 2013, The Financial Times US emissions of CO2, the gas that scientists say is mainly responsible for climate change, have been in decline since 2007, and last year hit their lowest level since 1994, according to the government’s Energy Information Administration. However Fatih Birol, chief economist at the International Energy Agency, a Paris-based think-tank backed by 28 governments, said last week the decline was principally a result of US power generators switching away from coal and towards gas, which typically creates about half as much CO2 when burnt for an equivalent output of electricity.

42. Birol (2013)

43. Birol (2013)

44. Birol (2013)

45. Birol (2013)

47. Summary
World economy runs almost entirely on fossil fuels (gas more than coal 2030 and eventually more than oil)
Gas reserves have increased over 20 % the last ten years. Year-to-year affected by economic crisis
Only 25 % of reserves outside the Middle East and Europe and Eurasia (mainly Russia)
R/P world about 60, Norway about 20
LNG strong growth, now 30 % of world trade
Price in range of NOK/Sm3 (range 3x)

49. References
Backwith, R. (2011): Quantifying the Invisible: Getting a Handle on Methane’s Climate Impact, JPT, November,
Birol, F. (2013): Developments in Global Gas Markets and Implications for Europe, International Energy Agency, Presentation, 8 pp.
Bogart, A.J. & Ebneyousef, M.H. (1993): The Meaning of Reserves in Context of Global Economic Security and Survival, SPE 25829, 8 pp.
Bryant, S. (2007): Geologic CO2 Storage – Can the Oil and Gas Industry Help Save the Planet? JPT, September,
Nysæter, J.B. & Wottrich, V. (2012): Gas Markets 101, Presentation, TPG 4140 Natural Gas, Department of Petroleum Engineering and Applied Geophysics, NTNU, 53 pp.
Taylor, R.S., Tertzakian, P., Wall, T., Graham, M, Young, P.J. & Harbinson, S. (2012): Natural Gas: The Green Fueld of the Future, SPE , 13 pp.

50. http://www. worldenergyoutlook