Overview

Overview

Wyoming’s Abundant Mineral ResourcesPresented at the 2005 CBM Education FairJune 1, 2005

Is the United States Self SufficientIn Natural Gas?

Natural Gas Production, Consumption, and Imports,1970 - 2025 (trillion cubic feet)

0

5

10

15

20

25

30

35

1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025

Consumption

Production

Net Imports

History Projections

0

1

2

3

4

5

6

Pipeline Liquefied Natural Gas

Natural Gas Net Imports, 2002 and 2025(trillion cubic feet)

2002

2025

Should We Be Concerned?

Where Will Domestic Supplies ComeFrom?

Natural Gas Pipelines & Volume of Remaining Supply (Tcf)

OpalOpal

190

182

33

171

7

97

45

161

22

21

72

The pipeline system is underbuilt in relation to the natural gas resource in the Central Rocky Mountains. This gas supply is underutilized and undervalued as a consequence of lack of pipeline capacity.

How Does Wyoming Factor IntoThe Domestic Energy Supply Picture?

Growing production base Huge unconventional natural gas resource base Tremendous coal reserves Uranium reserves Large residual oil prospects w/ tertiary recovery potential

Wyoming Vintage Production – Nat Gas

Vintage Natural Gas Decline by First Year of Production

Wyoming - Statewide

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

Jan-

90

Jan-

91

Jan-

92

Jan-

93

Jan-

94

Jan-

95

Jan-

96

Jan-

97

Jan-

98

Jan-

99

Jan-

00

Jan-

01

Jan-

02

Jan-

03

Jan-

04

Jan-

05

Gas

Prod

ucti

on -

Mea

n (M

cf/d

)

Pre-1990 1990 1991 1992 1993 1994 1995 1996 1997

1998 1999 2000 2001 2002 2003 2004

Vintage Decline In Powder River Basin

Vintage Natural Gas Decline by First Year of Production

Powder River Basin

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

Jan-

97

Jul-9

7

Jan-

98

Jul-9

8

Jan-

99

Jul-9

9

Jan-

00

Jul-0

0

Jan-

01

Jul-0

1

Jan-

02

Jul-0

2

Jan-

03

Jul-0

3

Jan-

04

Jul-0

4

Jan-

05

Gas

Prod

uctio

n - M

ean

(Mcf

/d)

Pre-1997 1997 1998 1999 2000 2001 2002 2003 2004

Vintage Natural Gas Decline by First Year of Production

Johnson County, WY

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Jan-

00

May

-00

Sep-

00

Jan-

01

May

-01

Sep-

01

Jan-

02

May

-02

Sep-

02

Jan-

03

May

-03

Sep-

03

Jan-

04

May

-04

Sep-

04

Jan-

05

Gas

Prod

uctio

n - M

ean

(Mcf

/d)

Pre-2000 2000 2001 2002 2003 2004

New Developments in Natural Gas

15 Counties report some CBM activity Big George Coal coming on strong Atlantic Rim area poised for future growth Other areas showing great promise Jonah/Pinedale Anticline showing growth despite obstacles Deep sour exploration/production next on the horizon?

Big George Coal Formation – CBM Wells

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

1

10

100

1,000

10,000

100,000

1 Mil

Big George Coal - Powder River Basin

Time

Da

ily R

ate

Atlantic Rim – CBM Wells

1995 1999 2003 2007

1

10

100

1,000

10,000

100,000

Atlantic Rim Project Area

Time

Da

ily R

ate

Jonah/Pinedale Anticline

Vintage Natural Gas Decline by First Year of Production

Hoback - Farson

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Jan-

97

Jul-9

7

Jan-

98

Jul-9

8

Jan-

99

Jul-9

9

Jan-

00

Jul-0

0

Jan-

01

Jul-0

1

Jan-

02

Jul-0

2

Jan-

03

Jul-0

3

Jan-

04

Jul-0

4

Jan-

05

Gas

Prod

uctio

n - M

ean

(Mcf

/d)

Pre-1997 1997 1998 1999 2000 2001 2002 2003 2004

What if Jonah/Pinedale and the Powder Didn’t Exist?

Vintage Natural Gas Decline by First Year of Production

Wyoming less Hoback-Farson and Powder River Basin

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

Jan-

90

Jan-

91

Jan-

92

Jan-

93

Jan-

94

Jan-

95

Jan-

96

Jan-

97

Jan-

98

Jan-

99

Jan-

00

Jan-

01

Jan-

02

Jan-

03

Jan-

04

Jan-

05

Gas

Prod

uctio

n - M

ean

(Mcf

/d)

Pre-1990 1990 1991 1992 1993 1994 1995 1996

1997 1998 1999 2000 2001 2002 2003 2004

Looking For Pipeline Export Capacity?

Southwest Wyoming

Of Future Interest

Production and Price Comparison of Wyoming Coal, Coal Gasified into

Methane1 after 1998, and Natural Gas Energy Equivalents

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Year

Mil

lio

ns

of

MM

Btu

e

$0

$5

$10

$15

$20

$25

US

$Bil

lio

ns

Coal (MillionMMBtue)

Methane(MillionMMBtue)

Coal Value interms ofmethane price(US$Billions)

Coal Value(US$Billions)

Methane Value(US$Billions)

1 Efficiency = 70%

$ Derivatives from Gasification $

Source: Wyoming State Geological Survey, Wyoming Geo-Notes, Number 78, Nov. 2003, p. 1, Figs 1,2. Personal communication Rod.

And Now – Governor Dave Freudenthal

The Natural Gas Pipeline Authority

Bryan Hassler -- Executive Director

Carla Hubbard – Administrator

Gregg Detweiller – Technical Analyst

Colby Drechsel – Technical Analyst

Board MembersBoard Members:

Mark Doelger - Chairman 

Marc Randal Strahn - Vice Chairman

 Duane Zavadil - Board Member

 Jim Nielson - Board Member

Jim Peck - Board Member

Contact InformationBryan Hassler - Executive Director

E-mail – uep1@comcast.netOffice (303) 748-6473

Fax (303) 948-1428

Carla Hubbard – AdministratorE-mail – wyomingpipelinea@qwest.net

Website – www.wyopipeline.com

152 N. Durbin Street – Suite 230Casper, Wyoming 82601

Office (307) 237-5009