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Chapter J, Railbelt Fossil Fuel and Geothermal Energy Sources for Local Use in Alaska The Susitna and Nenana basins have some potential for hosting undiscovered gas resources, and both are candidates for exploration under the terms of State-issued exploration licenses. Both remain underexplored, and insufficient data are available to predict the role these frontier basins may play in supplying energy to the Railbelt region. New geologic mapping and associated field studies along the margins of these basins would provide much needed constraints on the framework geology and hydrocarbon prospectivity. Furthermore, the collection of high resolution gravity and aeromagnetic surveys in key areas might yield important and relatively cost-effective insights into the structure, fill, and gas resource potential of the Susitna and Nenana basins. In order to stimulate future exploration by industry, the State could consider exercising its right to publicly release currently confidential seismic data to the public if and when exploration licenses terminate. Coal resource recommendations Many of the most prospective coal fields in the Railbelt development region—namely the Beluga, Matanuska, Lignite Creek and Healy Creek fields have a substantial history of coal exploration, and in some cases, coal extraction. The geology of these fields is reasonably well-defined, and further studies are unlikely to change the available assessments of their resource potential. Other fields, such as the Kenai, Susitna, and Broad Pass fields are either covered by thick deposits of glacial detritus or are of such low rank as to make further study unwarranted. There may be merit for additional reconnaissance-level studies of the perimeter of the Yentna field in the Susitna Basin, and the smaller Western Nenana, Tatlanika Creek, Wood River, Rex Creek, and Mystic Creek fields in the Nenana coal province. Such investigations may involve more detailed geologic mapping and stratigraphic studies to further assess the potential resources in those locations. These may be followed up by a thoughtful reconnaissance drilling program if results of surface investigations look promising. Unconventional oil and gas resource recommendations Coalbed methane. The abundance of biogenically produced gas in the greater Cook Inlet area indicates the potential for coalbed methane is high. However, additional exploration is required to confirm that the resource, if present, can be economically produced. Methods for separating methane from produced water and disposal of produced water in the region’s cold climate must be addressed before this resource can be pursued to meet local energy needs. Coal rank in the Nenana province is generally too low to suggest a significant methane resource is present and producable. However, additional surface and subsurface data is required to better understand the distribution, rank, and gas content of coal beds over large portions of the province. Exploration for coalbed methane in the Healy Creek and Suntrana coal beds should consider areas removed from coal mining operations where depressurization from dewatering could hamper potential methane extraction. Tight gas sands. The possibility exists for encountering fractured tight gas sands the lower part of the Tertiary section and in portions of the Mesozoic stratigraphic section in Cook Inlet. While producible hydrocarbons may be present in tight sands in these sections, exploring for this resource will require significant exploration investment and the use of emerging fracture inducing technology.. Recent State incentives encourage new exploration drilling to penetrate the Mesozoic section; these wells could provide much needed data on the tight gas resource potential in the deeper parts of the Cook Inlet basin. The presence of low porosity and permeability sandstone in the Nenana and Susitna basins is poorly constrained and the overall potential for tight gas reservoirs is largely unknown. Shale gas. The potential for shale gas in the region is poorly known. The dearth of thermogenic gas recognized in conventional Tertiary reservoirs in Cook Inlet suggests the potential for shale gas in Tertiary units is low. Relatively few wells penetrate the middle Jurassic organic-rich rocks in the deeper part of the basin, although available data suggest modest potential for unconventional shale gas plays. State incentives for exploratory wells to drill into the Mesozoic may offer new insight into the potential for Jurassic shales to produce gas. The nonmarine nature of the Susitna and Nenana basins are generally not conducive to regional shale gas plays. However too little is known, particularly from the deeper parts of the Nenana basin, to rule out the possibility of this resource type. Gas hydrates. Due to the lack of extensive, continuous permafrost in most of the Railbelt region, the likelihood of finding gas hydrates are very low and doesn’t warrant further consideration at this time. Geothermal resource recommendations The proximity of geothermal resources to population centers in the railbelt region has attracted significant attention, most recently manifest by the successful lease sale at Mt. Spurr. Recent State subsidized exploration activity by Ormat has improved our geologic understanding, but has thus far not demonstrated the existence of a geothermal resource. Detailed examination of the data collected during their 2011 exploration should guide any decisions on whether or not to invest in further drilling. To determine whether anomalous thermal gradients in the Willow–Big Lake area are the result of a geothermal resource at depth, it is recommended that the State encourage additional exploration work in the area and if results warrant, conduct a geothermal lease sale. It is also recommended that the State continue to encourage exploration for geothermal Railbelt Page 108PDF Image | FOSSIL FUEL AND GEOTHERMAL ENERGY SOURCES FOR LOCAL USE
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