Tokyo, Japan, March 09, 2013 --(PR.com
)-- Tundra Gas is considering a proposal to invest in a joint venture exploration and production project in Alaska’s North Slope. Chief Geologist Michael Harris revealed the company is in advanced discussions with an American firm to exploit several sites known to have significant methane hydrates deposits.
“Local oil production has been declining for over 20 years, and it has reached the stage where exploration for other hydrocarbons is being welcomed by the Government in order to boost the economy and employment,” explained Mr. Harris.
Prudhoe Bay is the preferred location as the American company has extensive rights there and the local infrastructure is already in place.
“What makes this location especially attractive is the gas deposits are only 800 meters below the ground,” disclosed Mr. Harris. “The extraction costs would be much lower than normal, and with all the industry facilities at hand, this could be an extremely profitable venture. The key sticking point is whether the U.S. Department of Energy (D.O.E.) and other government agencies are ready to permit commercial methane extraction.”
The D.O.E’s National Energy Technology Laboratory recently concluded a $29 million study in Prudhoe Bay on the area’s methane hydrates deposits, and extracted one million cubic feet (30,000 cubic meters) of methane. Results and technical data from these experiments are being passed on to gas producers, including Tundra Gas.
“America has a surplus of gas right now, thanks to fracking,” said Mr. Harris. “This could change very quickly if there is an ‘incident’ involving fracking that provokes a backlash against the industry. Just look how quickly the Deepwater Horizon accident changed offshore oil production in the United States, The country needs a Plan B to ensure the flow of cheap gas that American manufacturers and energy firms depend upon is not disrupted. The Prudhoe Bay methane deposits appear to be sufficiently easy to extract that their exploitation is commercially viable even with fracking taking place further south.”