According to EIA’s recent report ‘Crude Oil and Natural Gas Proved Reserves’, there is a continuous rise on shale and tight resources that drove proved reserves of both U.S. crude oil and natural gas to new records in 2017. Reserves of U.S. crude oil increased 19.5% in comparison to 2016, whereas reserves of natural gas increased by 36.1% from the end of 2016.
As stated, there is a steady development of proved reserves on US crude oil and natural gas that exceeded the previous record of 388.8 Tcf set in 2014. Specifically, proved reserves of U.S. crude oil reached 39.2 billion barrels, exceeding the 39.0 billion barrels set in 1970. Moreover, proved reserves of natural gas reached the 464.3 trillion cubic feet in 2017, surpassing the previous record of 388.8 Tcf set in 2014.
During 2017 the annual average spot price for the benchmark West Texas Intermediate crude oil increased by 20% in comparison to 2016’s average price. Also, it surpassed $60 per barrel for the first time since June 2015 and contributed to drive increases in reserves.
Concerning crude oil in 2017:
- Texas and New Mexico showed the largest net increases, adding 3.1 billion and 1.0 billion barrels, each. The factor of the increase was the result of increased crude oil prices and development in the Permian Basin, specifically in the stacked oil-bearing formations of the Spraberry Trend and the Wolfcamp/Bone Spring shale play.
Concerning natural gas in 2017:
- Louisiana Henry Hub showed an increase by 21% during 2017, resulting to drive increases in natural gas reserves. Moving on, Pennsylvania added 28.1 Tcf of natural gas proved reserves, the largest net rise amongst states in 2017, as a result of increased prices and development of the Marcellus and Utica shales in the Appalachian Basin.
Also, Texas had the second-largest net development in natural gas proved reserves, with the largest portions of the increase coming from the Wolfcamp/Bone Spring shale play in the Permian Basin and the Haynesville/Bossier shale play in eastern Texas and northern Louisiana. The share of natural gas from shale increased from 62% of total U.S. natural gas proved reserves in 2016 to 66% in 2017.
Finally, proved reserves are the volumes of oil and natural gas that geological and engineering data use with reasonable certainty to be recoverable in the future from known reservoirs under existing economic and operating conditions. Changes in proved reserves from year to year reflect new discoveries, such as in new fields, new reservoirs in old fields, or extensions of existing reservoirs, net revisions and other adjustments to previous reserve estimates, and reductions from annual production of each fuel.