The Timing Of Gas Production From Hydrate

Assuming that gas will continue to be in demand "indefinitely" and to be supplied from conventional sources, at some point in time conventional gas inevitably will begin to become scarce, which will result in increasing prices. At the same time, it can be expected that the production cost of gas from hydrate, if anything, will gradually decrease due to technological development. When the price of the cheapest methane from hydrate matches that of conventional gas, it will then become commercially worthwhile to begin producing methane from methane hydrate (Fig. 2).

Figure 2. Conceptual cost development of conventional gas, and gas from hydrate.

The axes have deliberately been left uncalibrated.

Offshore drilling and production capabilities have been enhanced dramatically over the last decades. Record water depths in offshore drilling have increased from less than 200 m in 1965 to more than 2000 m in the 1990's. Connected to the increasing routine character of offshore operations, drilling and production cost continue to come down significantly. This trend will eventually tL

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