Abstract

This review is intended to provide an update on natural gas supply, and production and consumption patterns in the United States with specific focus on the future role the central Rocky Mountain area natural gas supply might play as other producing areas in North America are depleted.

Approximately 20% of the remaining natural gas supply in the United States, or 130 Trillion cubic feet, has been identified in the central Rocky Mountain area, and 85 to 90% of that volume is within Wyoming. At a time when national attention has focused on natural gas as an energy supply of strategic importance, Wyoming will play an increasingly important role.

The central Rocky Mountain area has been in the past an underutilized island of natural gas supply primarily limited to use in the local geographic market, not mainstreamed to major consuming areas of the United States.

With foreseeable increased demand for natural gas throughout the United States, and chiefly in California, attention has focused on the central Rocky Mountain area for a natural gas resource directly competitive with Canada and the traditional southwestern supply areas, provided economic pipeline capacity is available. Production from the central Rocky Mountain area has in the past been constrained by transportation facilities, not by upstream economics of exploring, developing, processing and other costs preparatory to delivery into a pipeline.

Many alternatives for new pipeline capacity in North America have been proposed and are currently being considered by producers and end users, and are under evaluation for their suitability by federal and state regulators.

The State of Wyoming has become an active participant with initiatives to promote increased use of its natural gas resource particularly in California. Wyoming's position is that natural gas from the Rocky Mountain area is the most logical and reliable long term supply of sufficient volume to adequately serve the new enhanced oil recovery market and other growing needs in California.