Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC



Associated gas contributes to growth in U.S. natural gas production

associated gas in major U.S. crude oil producing states

Source: U.S. Energy Information Administration, based on Enverus DrillingInfo data

A growing share of U.S. natural gas production is associated-dissolved natural gas (natural gas produced from oil wells), which is the result of increased crude oil production from low permeability, tight rock formations—Permian, Bakken, Eagle Ford, Niobrara, and Anadarko. In 2018, associated-dissolved natural gas production in these five major crude oil-producing regions was 12.0 billion cubic feet per day (Bcf/d), or about 37% of total natural gas production in these regions and about 12% of total U.S. natural gas production.

Associated-dissolved natural gas, also referred to as associated gas, is natural gas produced by oil wells. By contrast, non-associated gas is natural gas produced by natural gas wells. Some states define an oil well versus a natural gas well differently based on different gas-oil ratios (GOR). The U.S. Energy Information Administration uses a gas-oil ratio of 6,000 cubic feet (cf) of natural gas to 1 barrel (b) of oil (cf/b) for each year’s total well production to determine whether a well is an oil well or natural gas well. If the GOR for a year of production is equal to or less than 6,000 cf/b, then the well is defined as an oil well, and any natural gas produced from this well is called associated gas. In addition, the various state pressure bases used to measure natural gas volumes have been converted to the federal pressure base of 14.73 pounds per square inch absolute (psia) and 60 degrees Fahrenheit.

Associated gas contains natural gas plant liquids (NGPLs) such as ethane, propane, normal butane, isobutane, and natural gasoline. Associated gas is sometimes characterized as wet gas because it must be treated at natural gas processing plants to remove impurities and liquids before it can be marketed as natural gas. The increase in associated gas has led to record volumes of U.S. NGPL production. NGPLs are used as feedstocks to produce plastics, fibers, and other products.

The Permian region, which spans parts of western Texas and eastern New Mexico, has the most associated gas production of the five crude oil-producing regions. The Permian region produced 5.8 Bcf/d of associated gas in 2018, accounting for 51% of the Permian’s natural gas production total and surpassing non-associated gas production in the region for the first time. Record-high crude oil production from the Permian brings with it large volumes of associated gas. Greater natural gas production in the Permian region has led to additional natural gas takeaway pipeline capacity to move the natural gas out of the area to the market.

The Bakken formation, which is mostly in North Dakota, has the largest share of associated gas among the five major oil-producing regions. Associated gas accounts for 92% of the total natural gas production in the region. In 2018, the Bakken produced 2.2 Bcf/d of associated gas, surpassing the Eagle Ford, which produced 2.1 Bcf/d of associated gas. The Niobrara and Anadarko Basins both had increases in associated gas production in 2018, and their combined associated gas volume was 1.9 Bcf/d.

U.S. associated and non-associated natural gas production

Source: U.S. Energy Information Administration, based on Enverus DrillingInfo data
Note: U.S. crude oil regions include Permian, Eagle Ford, Bakken, Niobrara, and Anadarko.

Associated natural gas production in the United States increased from 4.3 Bcf/d in 2006 to 15.0 Bcf/d in 2018. During this period, the associated gas share grew from about 8% to 16% of total natural gas production (measured as gross withdrawals). Associated gas in the U.S. crude oil regions increased from 1.1 Bcf/d to 12.0 Bcf/d between 2006 and 2018. The share of associated gas in these regions grew from 8% to 37% of natural gas production in the major crude oil regions.


Copyright © 2019. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo

FEATURED COLUMNS

Business Trends: China pushes shale gas drilling amid corporate shakeups
-Adrienne Blume
In what appears to be a move to increase domestic energy production and self-reliance, as well as boost competition among foreign companies, China is reorganizing its state-owned energy firms and widening the invitation to shale gas drillers.
Editorial Comment: A brighter future for methane hydrates?
-Adrienne Blume
Methane hydrates are three-dimensional ice-lattice structures in which natural gas is trapped.
Executive Viewpoint: Innovative DCS targets biogas, LNG applications
-Jani Hautaluoma
New technologies, both process and digital, are revitalizing the hydrocarbon processing industry. Gas Processing & LNG talked with Jani Hautaluoma, Director of Process Automation for Valmet Automation, about the application of new production processes and digital advances for biogas and LNG production.


Best Practices in Supporting Front Line HPI Operations Remotely in Response to Covid-19

Register Now

To ensure employee safety, HPI companies had to quickly pivot to a remote support model with many subject matter experts (SMEs) and engineering staff working remotely supporting front line, sequestered critical operations and field operators.

What are the best practices and lessons learned from this new remote operational support model? What have been technologies and work processes that are enabling effective and efficient remote operational support? Is this the “new norm” going forward even when the impact of Covid-19 abates? If not, how will remote support of critical operations be changed?

If this topic and questions are of interest to you and your organization, please attend this special HPI webinar with a panel of leading industry customer experts who will discuss their perspectives. Attendees will have the opportunity to ask questions for the panelists.

May 18, 2020 10:00 AM CDT

Register Now

 

Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2020 Gulf Publishing Holdings LLC.