Page 46 - Handbook of Natural Gas Transmission and Processing Principles and Practices

1.7. Natural Gas Reserves
As natural gas is essentially irreplaceable, it is important to have an idea of how much natural gas is
left in the ground to use. Measuring natural gas in the ground involves a great deal of inference and
estimation. There is no single way that every industry player uses to quantify estimates of natural
gas. Therefore, it is important to delve into the assumptions and methodology behind each study to
gain a complete understanding of the estimate itself. With new technologies, these estimates are
becoming more and more reliable; however, they are still subject to revision. The Energy
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Information Administration (referred to as the EIA) estimates world proved natural gas reserves
to be around 5210.8 Tcf. The biggest reserves are located in the Middle East with 1836.2 Tcf (or
34% of the world total), and Europe and the Former U.S.S.R with 2158.7 (or 42% of total world
reserves), but very significant reserves exist also in other regions. Note should be made that the
most recent data on the world proved natural gas reserves can be found by visiting the EIA website
(www.eia.doe.gov).
Natural gas reserves have grown rapidly in recent years. However, the share of natural gas
reserves located onshore, easy to produce and close to consumers, is decreasing and the share of
reserves located offshore and in hostile environments appears to be increasing. The availability of
these reserves for the end-user is therefore hampered by production and transportation costs which
can exceed the price at which the gas can be sold. In such cases, innovative technical options are
required for reducing the costs and providing new outlets for natural gas.

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