Saudi Aramco has said it plans to reduce the cost of producing natural gas from so-called tight rock formations, putting it on equal footing to gas from the best plays in the United States, Bloomberg has reported. The state-owned producer is now targeting a cost of $2 to $3 per thousand cubic feet of tight gas, Adnan Kanaan, manager of the company’s Gas Reservoir Managing department said. Aramco is drilling in tight sands reservoirs where permeability and porosity is greater than that of shale formations but below that of conventional oil and gas bearing sands. “We do have shale, but shale will take a little bit more time because we need to go with the low-risk, high-rewards projects to get our revenue,” Kanaan said.
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