Natural gas producers in the US will be able to keep up with the projected demand because they are becoming more efficient, a spokesman for Southwestern Energy told a conference in Washington Tuesday.
"A frequently asked question is, 'Will you be able to keep up with demand?' The answer is without question, 'yes'," said Jim Tramuto, vice president of governmental and regulatory affairs for Southwestern Energy.
"The resource base is there. (Producers)continue to get better and more efficient," he said at the 2013 US Energy Information Administration Energy Conference.
Southwestern's average drilling time in the Fayetteville Shale play is a little over five days per well, down from 17 days per well a few years ago. Drilling costs have dropped from $3.2 million to about $2.2 to $2.1 million over the last quarter.
"We actually drilled 25 wells in 2 and a half days," he said. "The wells are about 4,000 feet [deep] and the laterals are 4,900 feet [long] on average. That is a significant increase in efficiency."
He said industries that use natural gas are returning to Texas and Louisiana because "the resource base is there and they can contract for long-term supplies," he said.
Because Southwestern's infrastructure is in place in the Fayetteville Shale play, "we can get gas to market within 30 days," he said. "This is just-in-time inventory with 100% certainty. We don't drill dry holes anymore."
He said 2 Bcf/day from the Fayetteville Shale has been sold through firm transportation agreements. "That is a real strong message on how much confidence we have in the shale plays that we are in," he said.
