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are removed and sold separately, including propane and butane Other impurities are also removed, like hydrogen sulfide (the refining of which can produce sulfur, which is then also sold separately) After refining, the clean natural gas is transmitted through a network of pipelines that deliver natural gas to its point of use In terms of reserves, natural gas is produced on all continents except Antarctica (BP, 2006) The world s largest producer is Russia The United States, Canada, and the Netherlands are also important producers The proven reserves of natural gas are of the order of in excess of 3600 trillion cubic feet (1 Tcf = 1 1012) Approximately 300 Tcf exist in the United States and Canada It should also be remembered that the total gas resource base (like any fossil fuel or mineral resource base) is dictated by economics Therefore, when resource data are quoted some attention must be given to the cost of recovering those resources Most important, the economics must also include a cost factor that reflects the willingness to secure total, or a specific degree of, energy independence Natural gas is produced in many countries around the world and most of those countries produce both oil and natural gas; a few produce only natural gas The ten largest natural gas-producing countries are: United States, Canada, Russia, United Kingdom, Algeria, Netherlands, Iran, Indonesia, Norway, and Uzbekistan (EIA, 2004; 2006) Because transportation costs add to the cost of natural gas, in most countries natural gas is consumed within the country or exported to a neighboring country by pipeline Technology for liquefying natural gas so that it can be transported in tankers is improving (Mokhatab et al, 2006) As technology continues to expand the options for gas transportation, demand for natural gas is expected to grow A common misconception about natural gas is that resources are being depleted at an alarming rate and the supplies are quickly running out In fact, there is a vast amount of natural gas estimated still to be retrieved from a variety of reservoirs However, many proponents of the rapid-depletion theory believe that price spikes indicate that natural gas resources are depleted beyond the point of no return However, price spikes of any commodity are not always caused by waning resources but can be the outcome of other forces at work in the marketplace
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23 CONVENTIONAL GAS
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231 Associated Gas Associated or dissolved natural gas occurs either as free gas in a petroleum reservoir or as gas in solution in the petroleum Gas that occurs as a solution in the petroleum is dissolved gas whereas the gas that exists in contact with the petroleum (gas cap) is associated gas Crude oil cannot be produced without producing some of its associated gas, which comes out of solution as the pressure is reduced on the way to and on the surface Properly designed well completions and reservoir management are used to minimize the production of associated gas so as to retain the maximum energy in the reservoir and thus increase ultimate recovery Crude oil in the reservoir with minimal or no dissolved associated gas is rare and dead crude oil is often difficult to produce as there is little energy to drive it After the production fluids are brought to the surface, they are separated at a tank battery at or near the production lease into a hydrocarbon liquid stream (crude oil or gas condensate), a produced water stream (brine or salty water), and a gaseous stream The gaseous stream is traditionally very rich (rich gas) in natural gas liquids (NGLs) Natural gas liquids include ethane, propane, butanes, and pentane (C5H12) and higher molecular weight hydrocarbons The higher molecular weight hydrocarbon product, which may also contain some pentane, is commonly referred to as natural gasoline
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