Re-industrialization of the United States takes hold as the nation grapples with how to meet the skyrocketing energy consumption requirements of data centers needed for the new computational needs. It’s not just driven by AI, but also by all the real-time monitoring needs as processes are automated. States will have to dramatically increase their electricity supply by as many means as possible. Capacity expansion will occur through local energy sources that can be harnessed for electricity generation.
The growth in demand for energy is a global phenomenon, as the global population increases and the need to build infrastructure to provide the services needed for healthy, happy, well-educated children and adults increases. Many countries are experiencing destabilizing impacts due to wars, natural disasters and political uncertainty, and increasing the quality of life helps maintain stable footing. Having a reliable source of electricity is paramount.
Natural gas can play a vital role in the expansion of the supply of electricity, particularly in legacy oil and gas fields. New technology dramatically expands the potential impact of geothermal. Boosting electricity through hydroelectric, nuclear, and even coal have been discussed, although they will require significant capital expenditures, and it’s hard to predict how they will unfold, due to permitting, regulatory and technological uncertainties. Solar and wind are tried and true alternatives, especially where there is wind and abundant sunshine. It is worth noting that all energy alternatives have their supporters and detractors.
In the case of natural gas in the United States, efforts to expand have begun in earnest. Chevron and GE Vernova have partnered to build natural gas-fired power plants, and hedge funds such as Engine No. 1 have committed more than $10 billion to that end. That is just the beginning as Google and others even look to small-scale modular nuclear power plants to meet their energy needs. Natural gas, however, looks to be the quickest and most efficient solution.
Where will the natural gas come from?
Many shale plays primarily consist of natural gas, but there is a great deal of natural gas in the legacy giant oil and gas fields. Some gas wells are relatively low-volume and others will require new drilling in plays that were previously produced through vertical drilling only. It means an immediate push to revitalize legacy gas fields through drilling, strengthening midstream capacity and plugging old orphan wells that interfere with production.
Giant legacy gas fields in the United States include the following, which also include currently producing wells:
- Panhandle Field, Texas, Oklahoma
- Pinedale, Wyoming
- Marcellus Shale, Pennsylvania, West Virginia
- Carthage, Texas
- Newark East, Texas
- Jonah, Wyoming
- B-43 Area, Arkansas
- Wattenberg, Colorado
- Arkoma Basin, Oklahoma, Arkansas
- Prudhoe Bay, Alaska
- San Juan Basin, Colorado, New Mexico
- Burbank Field, Oklahoma
- Haynesville Shale, Louisiana
Other gas will be produced in conjunction with oil production, which will require enhanced oil recovery, which can range from water floods to CO2 floods.
Because the wells are being drilled and produced in fields, there are tens of thousands of wells that need to be screened for repurposing or revitalization. Many orphaned and abandoned wells will need to be plugged in order to not interfere with reservoir pressure, or to divert injection fluids in EOR efforts.
What’s involved in the massive task of screening the old wells?
Here are a few key points:
- Analytics: In order to screen the wells and develop a workflow for the field, it will be necessary to gather all data possible about the well, starting with well header information (location, total depth, operator, etc.), and followed by production data, including water disposal.
- Which wells can be reworked and revitalized? This is an issue of wellbore integrity and pipeline integrity to gas gathering and processing facilities. Leak detection is needed here as well.
- Which wells need to be plugged? The old wells with collapsed casing and corroded wellheads need to be plugged quickly, with the highest possible integrity plugging materials to assure that they will not leak over time.
- Which wells need to be monitored for leaks? Leaks around compressors, gas gathering, pipelines and other production facilities are early indicators of corrosion, bad connections, and more. A 100-ppm leak of methane can be a first indicator that immediate maintenance and repairs should be done. A 500-ppm leak is an indication that a serious and potentially immediately dangerous equipment failure issue could be present.
- Coordination between pipeline companies and producers to make sure that all the wells can have their gas production enter the pipeline. Companies like Flogistix have developed technologies that increase pressures from low-volume gas wells to convert them from stranded gas wells to producers.
Boosting natural gas production in legacy fields is an excellent strategy for increasing the U.S. energy supply and enable reindustrialization. One can expect breakthroughs in efficiencies for massive computing data centers, so the data center demand curve may be tempered in the future. However, it is important to keep in mind that with energy comes innovation, and re-industrialization can take many forms, including the small-scale producers of agricultural, consumer, industrial, and infrastructure products.
Global Efforts to Boost
Natural Gas Production
Shale and tight resource production is growing, helping to offset declines in conventional production. Tight gas accounts for approximately 45 percent of natural gas production, mainly in the western provinces. Canada Energy Regulator (CER, formerly the National Energy Board) expects tight and shale gas production together will represent 80 percent of Canada’s natural gas production by 2035.
Mexico plans to boost natural gas production by 50 percent by 2030, targeting an output of 5 billion cubic feet per day. This involves drilling 269 exploratory wells in strategic areas with include the onshore areas of southeast Mexico and also offshore Gulf of America.
Argentina is implementing three major liquefied natural gas production projects, including the Argentina GNL export terminal, which will use gas from the Vaca Muerta shale formation.
Venezuela’s Caribbean margin has made new discoveries, resulting in an OGIP (original gas in place) amounting to as much as 44.8 trillion cubic feet in Caribbean waters from the Carupano (24.2 Tcf) ad the Urumaco (16.6 Tcf) basins.
Poland has expanded the regasification capacity at its LNG terminal in Świnoujście to 8.3 billion cubic meters per year, enhancing its energy security. The ORLEN Group is increasing natural gas imports from its Norwegian production assets via the Baltic Pipe.
Norway’s Troll field set a production record in 2024, delivering 42.5 billion standard cubic meters of natural gas.
Denmark’s Tyra II project reached full technical capacity, aiming to make Denmark a net exporter of gas again.
Germany is increasing its LNG import capacity to stabilize natural gas supply, reflecting efforts to diversify energy sources.
Spain is increasing its utilization of natural gas due to the closure of nuclear plants, with combined cycle facilities playing a larger role in electricity generation. Natural gas producing fields include the Viura and El Romeral.
Southeast Asia is seeing significant gas expansion, with Vietnam, the Philippines, Indonesia, Malaysia and Thailand seeing strong investment. The region is developing over 100 gigawatts of gas power capacity and expanding LNG import capacity. Much of the production comes from offshore platforms, and an aggressive plan to develop pipelines and LNG terminals is in place.
Indonesia is ramping up gas production with new projects in the Andaman block, South Andaman block, and Makassar Strait block. The country aims to achieve a gas production target of 12 Bcf by 2030.
Malaysia is set to introduce a Natural Gas Roadmap in late 2025 to enhance the sector’s contribution to the economy, focusing on infrastructure expansion and market competitiveness. Natural gas currently accounts for 43 percent of Malaysia’s total primary energy supply.
North Africa continues to drive the majority of Africa’s natural gas output, with production expected to remain stable throughout the decade.
South Africa is developing a major LNG project in Mpumalanga, expected to produce 50 megawatts of energy initially, with potential expansion to 500 MW. Nigeria and Algeria are focusing on LNG exports, with additional flows expected from Egypt, Equatorial Guinea, Mozambique, and the waters off Senegal and Mauritania.
Conclusion
Increasing natural gas reserves and boosting the supply of electricity for local and regional distribution requires long-range planning that takes into consideration pipelines. Reservoir characterization and modeling can be followed by new drilling techniques, real-time monitoring and innovative completion technologies. Project timing includes the legal and permitting hurdles, along with the construction of midstream facilities (compressors, gas conditioning, and more). Risks assessments must include environmental risks (orphan and abandoned wells, old equipment, aquifers, surface impoundments, offshore shallow and deepwater), along with potential snags that can delay the development of natural gas power plants. Robust planning makes it possible to develop realistic cost estimates, as well as the true cost of electricity, which is important for estimating capital requirements and securing funding.