Oregon Gas Storage Unit Agreement (Establish Unit on Depleted Producing Property)

State:
Multi-State
Control #:
US-OG-1016
Format:
Word; 
Rich Text
Instant download

Description

This is an agreement to establish a gas storage unit on depleted producing property.
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FAQ

Natural gas has an indefinite shelf life. However; it is not a good option for home storage. The properties of natural gas do not lend itself to storage a household tank.

Hear this out loud PauseNatural gas, like most other commodities, can be stored for an indefinite period of time. The exploration, production, and transportation of natural gas takes time, and the natural gas that reaches its destination is not always needed right away, so it is injected into underground storage facilities.

World Gas Reserves The world has proven reserves equivalent to 52.3 times its annual consumption. This means it has about 52 years of gas left (at current consumption levels and excluding unproven reserves).

Hear this out loud PauseNatural Gas Storage - Storage Fields The working gas requirement is generally about 50% of the total reservoir capacity. Gas is withdrawn in winter season and injected in summer. This type of storage facility can be used for long system supply or peak day.

The most common way to store natural gas is in large caverns underground. It can also be stored in smaller quantities in tanks above ground. The gas is injected into underground storage typically late in the spring or early in fall.

Natural gas is a commodity that can be stored for an indefinite period of time in natural gas storage facilities for later consumption.

Hear this out loud PauseBase gas (or cushion gas) is the volume of natural gas intended as permanent inventory in a storage reservoir to maintain adequate pressure and deliverability rates throughout the withdrawal season. Working gas capacity refers to total gas storage capacity minus base gas.

Hear this out loud PauseThe basic approach to storage valuation is to calculate the optimal position given the available forward curve and take this position on the forward market. This intrinsic value approach captures the predictable seasonal pattern in gas prices and secures a sure profit.

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Oregon Gas Storage Unit Agreement (Establish Unit on Depleted Producing Property)