This work examines four traditional assessments of the nation's potential supply of natural gas and oil resources. It suggests a new methodology - estimating "viable" resource, infrastructure and transportation costs. Environmental impacts are also considered.

Traditional resource assessments, however, are intended to estimate the "technically recoverable" resource, which does not reflect the amount of resource that can realistically be produced. This report lays the foundation for determining the "viable" gas and oil resource: that which is available when exploration and production costs, infrastructure and transportation costs, and environmental impacts are considered. The next step in the research will be to apply this methodology to estimate the viable resource in individual geographic areas. The analysis will specify the relationships among gas and oil deposits, technological options, economic costs, infrastructure requirements, environmental impacts, and other variables to allow for a comprehensive assessment of the viable gas and oil resource. (MP)