• 5 minutes China Faces Economic Collapse
  • 8 minutes ZeroHedge: Oil And Gas Bankruptcies To Accelerate As $137 Billion Debt Matures Over Next Two Years
  • 11 minutes Trump Will Win In 2020
  • 14 minutes Oil Production Growth In U.S. Grinds To A Halt
  • 1 min Drone attacks cause fire at two Saudi Aramco facilities, blaze now under control
  • 1 hour The Belt & Road Initiative: A Wolf in Sheep's Clothing?
  • 21 mins Never Bring A Rapier To A Gun Fight
  • 18 hours How OPEC and OECD play their role in setting oil price in light of Iranian oil sanction ?? Does the world agree with Iran's oil sanctions ???
  • 16 hours Cost of oil
  • 9 mins USAvChina.com
  • 4 hours Aramco Production
  • 6 hours Democrats and Gun Views
  • 5 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 21 hours Iran says tanker oil sold at sea, buyer sets destination
  • 11 hours US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 7 hours Iran in the world market
  • 4 hours Oil Slide Worries Traders. *relax* This Should Get Sorted by Year End.
Alt Text

U.S. And Russia Battle It Out Over This Huge Iraqi Gas Field

The geopolitically strategic gas field…

Alt Text

Can China Double Its Gas Output By 2040?

China is scrambling to double…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

Is Colorado Ground Zero For The Next Shale Gas Boom?

A new estimate from the U.S. Geological Survey finds that Colorado could actually hold 40 times more natural gas than previously expected.

The so-called Mancos Shale formation holds an estimated 66.3 trillion cubic feet (tcf) of natural gas, sharply up from the 1.6 tcf in the previous 2003 estimate. The Mancos formation is part of the greater Uinta-Piceance Province, and the large upward revision puts the Mancos basin second only to the Marcellus Shale in terms of the largest total gas reserves in the U.S.

“We reassessed the Mancos Shale in the Piceance Basin as part of a broader effort to reassess priority onshore U.S. continuous oil and gas accumulations,” said USGS scientist Sarah Hawkins, lead author of the assessment. “In the last decade, new drilling in the Mancos Shale provided additional geologic data and required a revision of our previous assessment of technically recoverable, undiscovered oil and gas.”

For now, prices are likely to be too low for companies to begin drilling to any large extent. According to David Ludlam of the West Slope Colorado Oil and Gas Association, drillers probably need natural gas prices near $3.50 per million Btu (MMBtu). That is much higher than Henry Hub spot prices, which have traded near $2/MMBtu for the last several months, although they have surged lately as storage levels are climbing much slower than expected for this time of year. Natural gas prices jumped to $2.60 on Thursday after the latest data from the EIA showed another smaller-than-expected inventory build. Related: Billionaire Investors Back A Gold Price Rally In 2016

But even if prices did rise to those levels needed for Colorado’s Mancos Shale, producers would have trouble finding a way to get that gas to market. The best bet would be for LNG export terminals on the West Coast, but previous proposals for such projects have gone nowhere. The Jordan Cove LNG export terminal in Oregon recently was denied a federal permit and is stuck on the drawing board.

That suggests that the Mancos Shale may not be developed in the near-term despite the massive volume of natural gas that the formation holds.

(Click to enlarge)

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment
  • CapitalistRoader on June 11 2016 said:
    So, 66 * 10^12 new supply divided by 25 * 10^6 current US annual consumption equals 2.64 million years of consumption. Or is my math off?

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play