Energy Insights: Future Natural Gas Supplies in the United States are at their Highest Reported Level On Record

Release Date and Context

The Potential Gas Committee (PGC) released their 2022 year-end assessment of the nation’s estimated natural gas resource base, Potential Supply of Natural Gas in the United States. The assessments play a pivotal role in informing policymakers, regulators, and other stakeholders about the state of natural gas supplies in the United States.

Key takeaways:

1. Record Levels of Future Gas Supply: As of 2022, the Future Gas Supply, which includes both Resources and Proved Reserves, has reached an all-time high. It totals 3,978 trillion cubic feet (Tcf), marking a 3.6% increase from the 2020 year-end estimate.
   
2. Modest Decline in Technically Recoverable Resources: Between 2020 and 2022, Technically Recoverable Resources declined by just 0.5%. These resources amount to 3,352 Tcf, as per the PGC’s 2022 assessment.
   
   1. Significance: Despite the slight decline, this reduction is considerably smaller than the volume of natural gas produced and shifted to Proved Reserves in the same period. In essence, declining resources have been more than compensated for by new discoveries. This trend corroborates a strong, ongoing potential for U.S. natural gas supply.

Future gas supplies continue to increase as the energy industry innovates technology, improves processes, optimizes resources, and effectuates operational standardization and efficiencies of horizontal drilling and completion approaches. To fully realize the potential of this abundant resource, investment in new infrastructure connecting production zones to demand centers will be essential.

Additional Background:

• The Potential Gas Committee (PGC) remains an authoritative institution in the evaluation of future natural gas supply in the United States.
• The Committee’s biennial report stands as the U.S.’ most comprehensive analysis concerning future natural gas availability.
• The PGC is comprised of 80 knowledgeable and highly experienced volunteer members who work in the natural gas exploration, production, transportation, and distribution industries and the technical services and consulting sectors.
• The assessments identify potential natural gas resources that the Committee’s members believe can be extracted by future drilling provided that sufficient economic incentives exist and using current or foreseeable technology.

Data: Potential Gas Committee. Potential Supply of Natural Gas in the United States. https://potentialgas.org/

Contact: Richard Meyer, Vice President, Energy Markets, Analysis, and Standards | rmeyer@aga.org