EIA: US reserves additions outpaced production in 2001

Oct. 14, 2002
The Energy Information Administration said US crude oil and natural gas proved reserves increased in 2001, replacing production by substantial margins.

The Energy Information Administration said US crude oil and natural gas proved reserves increased in 2001, replacing production by substantial margins.

Proved reserves increased by almost 2% in 2001 for oil and 3.4% for dry natural gas, EIA said in a report issued earlier this month. Conversely, natural gas liquids proven reserves decreased 4.2%.

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EIA said that, from 1977 through 1996, proven US crude oil reserves declined 17 out of 19 years. But in the last 4 out of 5 years, oil reserves have increased. New field discoveries of oil in 2001 were at the highest level since Alaska's Prudhoe Bay field proved reserves were added in the 1970s.

Most of the crude oil last year came from frontier areas of the deepwater Gulf of Mexico and Alaska. For natural gas, US proved reserves have increased in 7 of the last 8 years, EIA said. The majority of natural gas proved reserves additions came from Pinedale field in Wyoming, the Lobo trend and Barnett shale areas in Texas, and Wattenberg field in Colorado. EIA said that improved technology helped producers realize dramatic production gains in these fields.

Total discoveries

Total discoveries of crude oil were 2.565 billion bbl in 2001, almost twice the 2000 discoveries and greater than three times the prior year. Reserve additions exceeded production 21% for oil and 31% for natural gas in EIA's most recent annual assessment.

EIA officials said that deepwater Thunder Horse field, about 125 miles southeast of New Orleans, represented a significant portion of new US oil reserves added last year. When fully developed, Thunder Horse, in more than 6,000 ft of water, is expected to be the largest field in the Gulf of Mexico, EIA said.

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"Developing this field in water over a mile deep will be yet another extraordinary technical achievement in the federal offshore," EIA noted.

US proved crude oil reserves increased by about 2% in 2001, with reserves additions accounting for 121% of domestic oil production. Extensions to existing fields accounted for 866 million bbl of crude oil reserve additions, EIA said. This was a 13% increase over 2000 extensions and almost twice as much as the prior 10-year average. New reservoir discoveries in old fields were 292 million bbl, 17% more than in 2000 and 93% more than the prior 10-year average.

Meanwhile, reserves additions from new field discoveries totaled 1.407 billion bbl in 2001—four times as much as in 2000 and over six times as much as the prior 10-year average, EIA said. Deepwater proved crude oil reserves are now almost three times those in the shallower water of the continental shelf.

In other crude oil news, EIA said that the annual average US first-purchase price for crude oil decreased 18% from the 2000 level to $21.84/ bbl. The agency also noted that exploratory and developmental oil completions were up 8% from 2000.

Gas reserves

Reserves additions were 131% of US dry natural gas production, EIA said. Coalbed methane proved reserves and production continued to grow in 2001. Coalbed methane accounted for 9.6% of proved dry gas reserves and 7.9% of dry gas production. Significant reserves were added in the Powder River basin coalbed methane fields in Wyoming and coalbed methane fields in Colorado, EIA said.

This year's reserves survey found that dry natural gas production last year increased almost 3%, reaching the highest level since 1977 when EIA initiated its proved reserves report series. The US production estimate of 19.8 tcf of natural gas is based on production reported by 1,439 surveyed operators of oil and gas wells. The operators directly reported 97% of the volume and EIA statistically estimated the remaining 3%, the agency said.

Field extensions were 16.380 tcf, 11% more than extensions in 2000 and also more than twice the prior 10-year average of 7.802 tcf. New reservoir discoveries in old fields were 2.8 tcf, up 18% from 2000 and 20% more than the prior 10-year average.