Exxon says N. America Gas Production Has Peaked  

Posted by Big Gav

It seems peak natural gas has arrivd in North America. I guess this means if you live in Alaska, expect to see new pipelines appearing, and if you live on the coast, expect to see LNG terminals appearing.

All the news seems rather gloomy tonight. On the bright side, if you hold shares in Australian natural gas producers, you may soon start feeling richer for a while...

After weak prices in the 1990s due to oversupply, natural gas production in North America will probably continue to decline unless there is another big discovery, Exxon Mobil Corp.'s chief executive said on Tuesday. "Gas production has peaked in North America," Lee Raymond told reporters at the Reuters Energy Summit.

Asked whether production would continue to decline even if two huge arctic gas pipeline projects were built, Raymond said, "I think that's a fair statement, unless there's some huge find that nobody has any idea where it would be."

Exxon is a major player in the two multi-billion dollar pipeline projects that could bring stranded arctic gas to Canada and the lower 48 states.

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4 comments

I hope the reservoirs are huge and the plateau flat, as from what I have heard, once NG starts depleting it falls off a cliff.

Well - the reservoirs aren't in the same league as Russia's, Qatar's or Iran's - so I imagine they'll get drained in short order as everyone scrambles to import as much as they can over the next 20 years. And my understanding is the same as yours as regards the rapid dropoff for NG depletion.

Then we'll be down to coal, uranium and biofuels.

At some point we'll eventually be fully sutainable in terms of energy use (unless breeder reactors or fusion come along to save the day), but I'm starting to think the ride is going to get bumpier fairly soon.

I'd like to follow this statement from Exxon closely as Lee Raymond is the last one I thought would start talking about a peak.

Didn't Matt Simmons predict this a few years ago ?

The fact that Exxon thinks it worthwhile exploiting stranded arctic gas fields would probably indicate the peak for gas in north america is really here - so Raymond has nothing to lose by stating the obvious.

What now looks like a panicked rush to build LNG terminals would also seem to indicate plenty of people believe the decline will be rapid.

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