Traditionally, conventional natural gas production has centered on sandstone and carbonate rock formations. Increasingly, however, the nation has turned to low-permeability, tight sandstones, gas shales and coal bed methane formations to increase our nation's natural gas reserves.
With DTE Energy's strong technical and operating expertise related to shale formations, we are well positioned to deliver on our nation's growing need for natural gas.
Our DTE Gas Resources subsidiary operates approximately 200 wells in the Fort Worth basin. Located in north central Texas, the Barnett shale formation has emerged as one of the largest and most active gas fields in North America.
Our properties are located in the western expansion of the Barnett shale where gas production is rich with natural gas liquids, which yields a premium to dry gas at current commodity prices.
Conventional vs. Unconventional Gas Production
Unconventional Conventional
From an investment standpoint, conventional natural gas exploration holds more risk. Gas reservoirs are typically smaller and/or more difficult to locate.
On the other hand, unconventional gas reservoirs can exist over a large area penetrated by older conventional wells, reducing the exploration risk. Horizontal drilling techniques may enhance and extend production of unconventional natural gas.
Unconventional reservoirs exist in a self contained environment where the productive formation may act as source, reservoir and seal. After test wells prove the economic viability of a given area, unconventional resources can be developed on a large scale.
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