Gas Supply Study Findings
APC supply analysis challenges consensus on strong growth in gas production.
Short-term growth limited to 1-2%
Medium-term growth (2002-2005) possible, but not guaranteed
Long-term, sustainable gas production growth achievable only through development of frontier areas
- Mature areas - Texas, Mid-Continent, GOM Shelf
- Long-term trends continuing
- Higher peak production
- Steeper 1st and 2nd year decline rates (40 - 60% in many areas)
- Reduced rig efficiency as activity increases
- Frontier areas - Rockies, GOM Deep Water, Canada, Arctic
- Land access and permitting
- Infrastructure issues