New methodology for assessing underground natural gas storage resources – Example from Michigan Basin, United States

Energy consumption in the United States (U.S.) and across the world is shifting away from traditional fossil fuels like coal and oil, and towards natural gas and renewable sources, including hydrogen. Because gas demand is typically greatest during cold seasons and renewable sources sometimes produce variable supplies, it is important to store energy for use when demand exceeds supply. Whereas batteries and tanks typically store energy above ground, geologic (underground) storage may be able to retain much greater quantities of energy over much longer durations (e.g., Matos et al. 2019; Buursink et al. 2023). Consequently, the U.S. Geological Survey (USGS) is developing a methodology to locate new geologic energy storage sites with an initial focus on depleted hydrocarbon reservoirs followed by estimates of associated pore space or gas storage capacity.

Depleted hydrocarbon fields in Michigan Basin in the U.S. already host large quantities of injected natural gas (about 681 billion cubic feet of seasonal gas capacity in 42 gas storage facilities; U.S. Energy Information Administration 2024). Therefore, we used this basin as an example to assess potential new storage resources alongside existing storage capacity and carbon dioxide sequestration resources (e.g., Katz and Coats 1968; Haagsma et al. 2020). In Michigan Basin gas storage is taking place in reservoirs within several key hydrocarbon producing formations with different lithologies, including the informal Stray sandstone of the Michigan Formation and the pinnacle reefs of the Niagara Group (Gautier et al. 1995; Swezey et al. 2015). The assessment methodology introduced here consists of two steps relying on both well information and reservoir data.