It is generally accepted that the amount of gas in the world's gas hydrate accumulations exceeds the volume of known conventional gas resources. Researchers have long speculated that gas hydrates could eventually be a commercial producible energy resource yet technical and economic hurdles have historically made gas hydrate development a distant goal rather than a near-term possibility. This view began to change in recent years with the realization that this unconventional resource could possibly be developed with existing conventional oil and gas production technology. The most significant development has been gas hydrate production testing conducted at the Mallik site in Canada's Mackenzie Delta. The Mallik Gas Hydrate Production Research Well Program has yielded the first modern, fully integrated field study and production test of a natural gas hydrate accumulation. More recently, BP Exploration (Alaska) Inc. with the US Department of Energy and the US Geological Survey have successfully cored, logged and tested a gas hydrate accumulation on the North Slope of Alaska known as the Mount Elbert Prospect. The Mallik project along with the Mount Elbert effort has for the first time allowed the rational assessment of the production response of a gas hydrate accumulation. In addition to the gas hydrate production tests in Canada and the USA, marine gas hydrate research drilling, coring and logging expeditions launched by the national gas hydrate programmes in Japan, India, China and South Korea have also contributed significantly to our understanding of how gas hydrates occur in nature and have provided a much deeper appreciation of the geological controls on the occurrence of gas hydrates. With an increasing number of highly successful gas hydrate field studies, significant progress has been made in addressing some of the key issues on the formation, occurrence and stability of gas hydrates in nature.