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By Tom Latourette

This record lays the basis for deciding on the gasoline and oil assets which are realistically on hand while exploration and construction expenses, infrastructure and transporation expenses, and enviromental affects are thought of.

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Extra info for Assessing Gas and Oil Resources in the Intermountain West Review of Methods and Framework for a New Approach

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The costs of new pipeline, compression, processing, and transmission infrastructure impact the economics of resource development negatively. In many cases resources will still be economically recoverable with these additional costs. In other cases, however, these costs can be prohibitively high. The availability of infrastructure thus represents an additional criterion for defining the economically recoverable resource. Typically, resource assessments do not consider the infrastructure requirements associated with resource development.

S. Geological Survey estimate is substantially lower than the others. Initially spurred by section 29 federal tax credits and intensified by relatively higher gas prices in recent years, there has been a great deal of coalbed methane exploration and development activity in the Rocky Mountain Region. Over this time, the assessments of the resource have generally expanded. S. Geological Survey assessment, for example, show a 14-fold increase in the coalbed methane resource in the Powder River Basin (Energy Information Administration, 2002).

Once drilling is completed, production operations can typically proceed unimpeded by stipulations. This provides motivation to pursue drilling activities, even if they are delayed and incur increased costs. One common option is to drill during unrestricted time periods over multiple seasons to complete a well. Thus, even when lease stipulations preclude single-season drilling, resources can be accessed. This approach is likely to be pursued preferentially in the most resource-rich areas, and hence could allow access to substantial resources that would be recorded as inaccessible with the existing analytical approach.

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