topic 12

Question 1

Conventional Gas

Answer 1

Gas trapped in structures of sedimentary layers. These gas deposits are found in permeable rocks and have collected below a “trap”

Question 2

Associated Gas

Answer 2

Gas produced from oil wells. This gas is flared or released in most cases as collection is economical. (AKA; flare gas)

Question 3

Tight Gas

Answer 3

Gas from low permeable rocks. This gas requires hydraulic fracturing to release. Considered unconventional.

Question 4

Wet Gas

Answer 4

Gas with a small amount of liquid present. This liquid can be a range of things from water to hydrocarbons

Question 5

Fracking

Answer 5

Hydraulic Fracturing- the process of injecting water (90%), sand (9.5%), and chemicals (0.5%) into a well at high pressures (15,000+ psi) to break rock and release trapped gas. Usually done along side horizontal drilling.

Question 6

Shale Gas

Answer 6

natural gas trapped in shale formations. Shale is a type of sedimentary rock.

Question 7

Stranded Gas

Answer 7

Gas reserves which has been discovered but remains unextractable due to economic or physical reasons. (associated gas is NOT stranded gas)

Question 8

LNG

Answer 8

Liquified Natural Gas- Gas that has been converted to liquid for ease of storage or transport. It is cooled to -162 C. Higher reduction in volume than CNG.

Question 9

CNG

Answer 9

Compressed Natural Gas- made by compressing natural gas to 1% of its volume. Traditionally used for ICE that use natural gas.

Question 10

Coal-to-Gas Switching

Answer 10

A phenomenon that occurs when gas is cheaper than coal. Why?: 1) natural gas is cheaper 2) coal plants are being retired due to emissions regs.

Question 11

Indexing

Answer 11

connecting of price to another commodity. NG is indexed to Oil due to the stability of oil and the global trade of oil.

Question 12

Rig Count

Answer 12

the number of rigs currently active. The change in rig count is useful to know as far as drilling rates.

Question 13

Rig Productivity

Answer 13

how much gas is produced per active rig. This number has increased due to the decrease in active rigs and the increase in gas production.

Question 14

Break-even Price

Answer 14

This is a long term average cost of what the company needs to sell their gas for, during the life of the well, to break even on the project. This is also called “long term marginal cost”

Question 15

Citygate

Answer 15

A point of measuring station at which a distributing gas utility receives gas from a natural gas pipeline company or transmission system