Methane Hydrate Upstream Cost Modelling using Single Well Analysis for NEA Region
Methane hydrates are present in substantial quantities in North East Asia and have the potential to disrupt global energy markets once economical extraction methods are identified and developed. Any NEA country that is able to exploit its methane hydrate resources will potentially alter its need for hydrocarbon imports. This would greatly impact future energy trade relations between NEA and Organization of the Petroleum Exporting Countries participants and could result in a shift from a broader bilateral energy trade relationship into a narrow one. Demand would decrease and hydrocarbon price fluctuations would affect revenue streams as well as international trade partnerships. In this study, we attempt to present an optimized operational research cost model suing single well analysis for methane hydrate integration into the energy mix in the North East Asian countries. Our model takes into account key parameters including the volume of estimated reserves, the state of current technology & future developments for exploration and production, infrastructure & investment availability, resource allocation, private/public collaborative partnership and costing/pricing in a reservoir dynamics-based analysis under market constraints. Finally, we propose policy recommendation based on our analysis.
. Alexiades, V. 2009. “Methane Hydrate formation and dissociation.” UAB Conference on Differential Equations and Computational Simulations, Electronic Journal of Differential Equations, Conference 17, 1-11.
. Anderson, G.K. 2004. “Enthalpy of dissociation and hydration number of methane hydrate from the Clapeyron equation.” Journal of Chemical Thermodynamics, 36, 1119-1127.
. Boswell, R. 2009. “Is Gas Hydrate Energy Within Reach?” Science, 325, 5943, 957-958.
. Buchholz, G., Droge, S., Fritsche, U.R., Ganzer, L., Herm-Stapleberg, H., Meiners, G., Muller, J., Ruske, H.R., Uth, H.J. and Weyand, M. 2013. Fracking for shale gas production, SRU, German Advisory Council on the Environment.
. Callen, T., Cherif, R., Hasanov, F., Hegazy, A., and Khandelwal, P. 2014. Economic Diversification in the GCC: Pas, Present, and Future. Institute for Capacity Development and Middle East and Central Asia Department, International Monetary Fund (IMF).
. Clark, C., Burnham, A., Harto, C., and Horner, R. 2013. Hydraulic Fracturing and Shale Gas Production: Technology, Impacts, and Regulation. Environmental Science Division, Argonne National Laboratory.
. Dallimore, S. and Collett, T.S. 2005. Scientific Results from the Mallik 2002 Gas Hydrate Production Research Well Program, MacKenzie Delta, Northwest Territories, Canada. Geological Survey of Canada Bulletin 585.
. Energy Supply Security. 2014. Emergency response systems of IEA partner countries: China.
. Enhanced Oil Recovery. 2015. Shell Technology.
. Financial Times (FT). 2014. “Methane hydrates could be energy of the future.” Accessed on: 22nd November, 2016. http://www.ft.com/cms/s/2/8925cbb4-7157-11e3-8f92-00144feabdc0.html#axzz3sDnW2Yb6
. Folger, P. 2010. Gas Hydrates: Resource and Hazard, CRS Report for U.S. Congress.
. Gabitto, J.F. and Tsouris, C. 2010. “Physical Properties of Gas Hydrates: A Review.” Journal of Thermodynamics.
. Gas Hydrates Research Program: An International Review, 2010.
. Harris, W. 2014. “How Frozen Fuel Works.” Energy Production Technologies. Accessed on: 25th November, 2015. http://science.howstuffworks.com/environmental/green-tech/energy-production/frozen-fuel5.htm
. Hancock, S., Collett, T.S., Pooladi-Darvish, M., Gerami, S., Moridis, G., Okazawa, T., Osadetz, K., Dallimore, S., and Weatherill, B. 2004. “A preliminary investigation on the economics of onshore gas hydrate production based on the Mallik Field discovery.” American Association of Petroleum Geologists Hedberg Conference Proceedings, Vancouver, CA.
. Holder, G.D., Kamath, V.A., and Godbole, S.P. 1984. “The potential of natural gas hydrates as an energy resource.” Annual Review of Energy, 9, 427-445.
. Howe, S.J. 2004. Production modeling and economic evaluation of a potential gas hydrate pilot production program on the North Slope of Alaska. M.S. Thesis, University of Alaska Fairbanks.
. IHS Energy. 2014. Leadership case study: Oil & Gas Industry Energy Technology Solutions.
. Institute of Sustainable Energy Policies (ISEP). 2014. Renewable Japan Status report 2014.
. International Energy Agency (IEA). 2012. Energy policies of IEA Countries: The Republic of Korea.
. IEA. 2012. Energy policies of IEA Countries, The United Kingdom.
. IEA. 2014. “Analysis of low-growth scenarios for China and India and the climate change issue.” Asia/World Energy Outlook 2014.
. IEA. 2014. Energy Supply Security.
. IEA. 2014. Renewable Energy: Market Analysis and Forecast to 2020, Medium-term market report.
. KPMG. 2011. Shale Gas – A Global Perspective. KPMG Global Energy Institute.
. Lefebvre, B., 2013, “Scientists Envision Fracking in Artic and on Ocean Floor”, The Wall Street Journal. Accessed on: 20th November, 2016.
. Lu, S.M. 2015. “A global survey of gas hydrate development and reserves: Specifically in the marine field.” Renewable and Sustainable Energy Reviews, 41, 884-900.
. Luxresearch. 2014. The Gas Hydrate Opportunity: Exploration and Production.
. Maruyama, S., Deguchi, K., Chisaki, M., Okajima, J., Komiya, A., and Shirakashi, R. 2012. “Proposal for a low CO2 emission power generation system utilizing oceanic methane hydrate.” Energy, Elsevier, 47, 1, 340-347.
. MH21. 2008. Research Consortium on Developing Methane Hydrate Resources.
. Moridis, G.J., Collett, T.S., Boswell, R., Kurihara, M., Reagan, M.T., Koh, C.A., and Sloan Jr., E.D. 2008. “Toward Production From Gas Hydrates: Current Status, Assessment of Resources, and Simulation-Based Evaluation of Technology and Potential.” SPE Unconventional Conference, USA.
. National Energy Technology Laboratory (NETL). 2011. Energy resource potential of Methane Hydrate, An introduction to the science and energy potential of a unique resource. U.S. Department of Energy.
. Oil & Gas Security. 2013. Emergency response of IEA Countries: Japan.
. Paull, C.K., and Dillion, W.P. 2013. Natural Gas Hydrates: Occurrence, Distribution, and Detection. Wiley Online Publication.
. Partain, R.A. 2015. “Avoiding Epimetheus: Planning Ahead of the Commercial Development of Offshore Methane Hydrates.” Sustainable Development Law & Policy, 1, 15, 56-58.
. Que$tor, IHS, 2014.
. Reagan M. T. & Moridis, G. J. (2007). Oceanic gas hydrate instability and dissociation under climate change scenarios. Geophysical Research Letters, 34, 1-5.
Renewable Energy Policy Network for the 21st Century (REN21). 2015. Renewable 2015: Global Status Report.
. Ruppel, C.D. 2007. “Tapping Methane Hydrates for Unconventional Natural Gas.” Elements, 3, 165-170.
. Ruppel, C.D. 2011. Methane Hydrates and the Future of Natural Gas. MITEI Gas Report, Supplementary paper on Methane Hydrates, US Geological Survey (USGS).
. Ruppel, C.D. and Collett, T.S. 2013. “Geological studies of methane hydrates reveal reserves with potential.” Energy Focus, Fall edition, 202-204.
. Rystad Energy Research and Analysis. 2015. http://www.rystadenergy.com
. Sloan Jr., E.D. and Koh, C.A. 2008. Clathrate Hydrates of natural Gases. 3rd Edition, Chemical Industries, CRC Press, Taylor & Francis Group.
. STARS – Thermal & Advanced Processes Reservoir Simulator.
. S&P Capital IQ. 2015. Accessed on: 25th November, 2016. https://www.globalcreditportal.com
. Takase, K. 2014. “Renewable Energy burst in Japan.” Special reports, Nautilus Institute for Security and Sustainability.
. Thomas, S. 2008. “Enhanced Oil Recovery – An Overview.” Oil & Gas Science and Technology, 63, 1, 9-19.
. TOUGH+ http://esd1.lbl.gov/research/projects/tough/
. UNEP Year Book 2014: Emerging issues update, 2014, Methane from Hydrates.
. UNEP. 2014. Frozen Heat: A global outlook on methane gas hydrates, 1 and 2.
. UNEP Global Environmental Alert Service (GEAS). 2012. Gas fracking: can we safely squeeze the rocks.
. United States Naval Research Laboratory (NRL). 2013. NRL Review: Methane Hydrate.
. United States Geological Survey (USGS). 2001. Natural Gas hydrates – Vast Resources, Uncertain Future.
. United States Energy Information Administration (EIA). 2012. Petroleum and Other Liquids.
. EIA. 2015. Annual Energy Outlook 2015 with projections to 2040.
. United States Energy Information Administration (EIA). 2014. Annual Energy Outlook 2014 with projections to 2040.
. United Nations. 1982. United Nations Convention on the Law of the Sea, Division for Ocean Affairs and the Law of the Sea, United Nations.
. United States Department of Energy (DOE). 2012. Methane Hydrate, Science & Innovation, Oil & Gas. Office of Fossil Energy. Accessed on: 20th November, 2016 http://energy.gov/fe/science-innovation/oil-gas-research/methane-hydrate
. Walsh, M.R., Koh, C.A., Sloan Jr., E.D., Sum, A.K., and Wu, D.T. 2009. “Microsecond Simulations of Spontaneous Methane Hydrate Nucleation and Growth.” 326, 5956, 1095-1098.
. Wakamatsu, H. and Aruga, K. (2013). The impact of the shale gas revolution on the U.S. and Japanese natural gas markets. Energy Policy, 62, 1002-1009
World Economic and Financial Surveys. 2014. Regional Economic Outlook: Middle East and Central Asia. International Monetary Fund (IMF).
. World Energy Assessment. 2000. Energy and the challenge of Sustainability.
. World Trade Atlas. 2014. Global Trade Information Services (GTIS). Accessed on: 25th November, 2016. http://www.gtis.com
- There are currently no refbacks.