Presentation given at the 2012 Alaska LNG Summit by Mark Myers, Vice Chancellor Research University of Alaska Fairbanks & former Director of U.S. Geological Survey.• US market transformation: Low gas prices and declining import needs of Lower 48. • Valdez LNG economics and global gas demand forecasts • Post-Fukushima: Asia in need of an energy alternative and the Alaskan LNG answer – how does Valdez LNG compare to Japan’s gas supply alternatives? • Growing interest in LNG exports from the USA: market opportunities • A spotlight on Alaska’s vast energy resources – tapping into a giant

1. UNIVERSITY OF ALASKA FAIRBANKS
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2. Alaska’s Natural Gas Potential
Alaska LNG Summit
Mark Myers, PhD
Vice Chancellor for Research
University of Alaska Fairbanks
13 September 2012
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3. The North Slope is Not a
Mature Petroleum Basin!
Question: What do the North
Slope and Samuel Clements
share in common?
Answer: A premature obituary
It has been reported that I was seriously ill--it was another man; dying--it
was another man; dead--the other man again...As far as I can see, nothing
remains to be reported, except that I have become a foreigner. When you
hear it, don't you believe it. And don't take the trouble to deny it. Merely
just raise the American flag on our house in Hartford and let it talk.
- Letter to Frank E. Bliss, 11/4/1897
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4. Alaska’s North Slope is Very Under-Explored
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5. North Slope Stratigraphy and Petroleum Systems
Source:
AK DOG
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6. USGS Circum-Arctic Resource Assessment
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7. USGS Circum-Arctic Resource Assessment
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8. Natural Gas Classifications
• Resource Categories
• Proven Reserve
• Undiscovered Resource
 Type of Accumulation
 Conventional Natural Gas
 Associated with oil
 Non-associated with oil
 Unconventional Natural Gas
 Methane Hydrates
 Basin Centered Gas
 Shale Gas
 Coal Bed Methane
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9. Advancing Resource Assessment From In-
Place to Technically and Economically
Recoverable Resource Estimates
UNIVERSITY OF ALASKA FAIRBANKS
Source: USGS 9

10. North Slope Land Ownership and Known
Petroleum Accumulations
a
Se
c hi Beauf
Chuk ort Se
a
coas
tal pl
ain
NPRA
ASR
C ANWR 1002
footh
ills
ANWR
ASRC
Noatak
Gates of the Arctic
Source: AK DOG
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11. 35 TCF of Natural Gas Reserves and 5 BB Oil
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Source: AK DOG 2009
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12. North Slope and Alaskan Arctic OCS
Conventional Undiscovered Technically
Recoverable Oil and Gas
UNIVERSITY OF ALASKA FAIRBANKS
Compiled by AK DOG 12

13. Alaska’s Unconventional Gas
Resources
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14. Shale Oil and Gas
Area of Potential Interest Shale Oil and Gas – Hue Shale/HRZ
ea
hi S Beauf
ukc ort Se
Ch a
coas
tal plain
NPRA
AS
RC ANWR 1002
footh
ills
ANWR
ASRC
Noatak
Gates of the Arctic
UNIVERSITY OF ALASKA FAIRBANKS
From P Decker AK DNR (mature area after Peters and others, 2006) 14

15. Shale Oil and Gas
Area of Potential Interest Shale Oil and Gas – Shublik and Lower Kingak Formations
ea
hi S Beauf
ukc ort Se
Ch a
coas
tal pl
ain
NPRA
ASR
C ANWR 1002
footh
ills
ANWR
ASRC
Noatak
Gates of the Arctic
From P Decker AK Dog (mature area after Peters and others, 2006)
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16. The Evolution of Commercial Natural Gas Production
Natural Gas Hydrates?
Shale Gas
Tight Gas Sands
Coalbed Methane
Non-Associated Conventional
Conventional Associated With Oil
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17. Factors Necessary For Commercialization
of North Slope Unconventional Petroleum
Resources
Identification Unconventional natural
of Resource Production gas delineation on the
Technology North Slope needs to
evolve from resource
identification to
production testing
Favorable
Economics
Modeling and reservoir production simulations of North Slope hydrate
accumulations within high quality sandstone reservoirs indicate that
production using existing technologies could be commercially viable
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18. Shale Oil and Natural Gas Hydrates – Largest
Known Potential Sources of Oil and Gas
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www.jsg.utexas.edu/news/feats/2008/exploration_innovation.html 18

19. Great Bear
Great Bear
Petroleum
Petroleum
approximate land
approximate land
position
position
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20. 70 acres total surface impact (14 pads, 5 acres
each)  17,920 acres of subsurface
development (2 mile-long laterals on each side
of road times 7 miles length times 640 acres/mi2)
(Canadian Business Resources
(courtesy Lynn Helms NDIC, DMR, 2011 )
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21. Natural Gas
Hydrates
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Source: USGS 21

22. Three Proposed Methods For Producing Natural
Gas Hydrates
or CO2
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Modified from USGS/BLM /DGGS 22

23. Estimated In-place Resource
Alaska gas hydrate
resource assessment
- Estimated volume of
gas trapped within
permafrost
associated gas
hydrate
accumulations in
northern Alaska
UNIVERSITY OF ALASKA FAIRBANKS
Source: USGS 23

24. Mt. Elbert Stratigraphic Test Well – Milne Point in
February, 2007 Significantly Advanced Our
Knowledge of North Slope Hydrates
•Confirmed Seismic Identification
of Accumulation
•430 Feet of Core Recovered
•Pressure and Short Term Test
Data
•Well Successfully Produced
Natural Gas Hydrates to Surface
DOE and Hunter (2007)
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25. 2011- 2012 Hydrate Test Program – Prudhoe Bay
• Six week successful short term production flow test and
technology demonstration
• CO2 and N2 injection with recovery of CH4
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26. North Slope and Alaskan Arctic OCS
Undiscovered Technically Recoverable
Oil and Gas
UNIVERSITY OF ALASKA FAIRBANKS
Compiled by AK DOG 26

27. Shale Oil and Natural Gas Hydrates – Largest
Known Potential Sources of Oil and Gas
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www.jsg.utexas.edu/news/feats/2008/exploration_innovation.html 27

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