The U.S. has almost three times as much recoverable natural gas as the government estimates, enough to place it third in the world, a Canadian analyst said.
Data from more than 24,000 recently drilled wells show the U.S. has 890 trillion cubic feet equivalent of recoverable natural gas, said Manuj Nikhanj, head of energy research at brokerage ITG Investment Technology Group Inc. (ITG) in Calgary. The Energy Information Administration estimated proved reserves of 317.6 trillion in 2010, a record high.
“As the years go on, the U.S. will revise their numbers upward, there’s no doubt in my mind,” Nikhanj said.
Nikhanj’s estimate would move the U.S. up from fifth on BP Plc (BP/)’s list of countries with the world’s largest gas reserves, behind Russia and Iran and ahead of Qatar and Turkmenistan. BP’s Statistical Review of World Energy estimated U.S. gas reserves at 299.8 trillion cubic feet at the end of 2011.