When a resident of Chicago turns on his gas stove, chances are good that the molecules he burns have come from beneath the windy prairies of Wyoming. Far across the Continental Divide, people in sunny California might draw power for their air conditioners from plants fueled by gas that once resided beneath pinon scrub in northern New Mexico. The story in natural gas supply today is the ascendancy of the Rocky Mountain region. The West has finally shouldered aside all other producing regions to become the major gas-supply powerhouse for the U.S. Production has skyrocketed from 10.2 billion cubic feet (Bcf) per day in 2000 to 13.6 Bcf in 2006, a quarter of all U.S. onshore gas production. And there are huge volumes of gas still to be recovered. According to international consulting firm Wood Mackenzie, Rockies gas production has potential to grow to 17.2 Bcf per day in 2011. "This is a true upside number-it assumes that everything that is identified can be drilled, and that developments will deliver the same estimated ultimate recoveries as previous wells," says David Haas, Houston-based analyst within WoodMac's Lower 48 research group. Underpinning the production forecasts is steady reserve growth. During the past five years, proved gas reserves in the Rockies have swelled from 46- to 61 trillion cubic feet (Tcf), a 32% increase. Impressively, those additional reserves are on top of a total production volume of 21.6 Tcf during the same period. For more on this, see the August issue of Oil and Gas Investor. For a subscription, call 713-260-6441.

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