The American Gas Association reports U.S. additions to proved gas reserves during 1997 are expected to be 96- 120% of production.
Chris McGill, AGA gas supply and statistics director, said, "This indication of strong 1997 reserves replacement comes at a time when long-term natural gas growth is expected to reach 30 tcf by 2015.
"To meet the requirements of robust growth in gas markets, annual additions to gas reserves through drilling must also remain strong, balancing new sources of natural gas with domestic production each year.
"Based on an analysis of the top 30 natural gas reserve holders, AGA estimates that 1997 natural gas reserve additions, which include new discoveries and revisions to existing reserves, will be between 18.1 and 22.7 tcf when reported by the Energy Information Administration later this fall."
AGA's annual study provides a preliminary indication of changes in the U.S. reserves inventory before the EIA data are released. AGA noted proved reserves are an estimated quantity of gas believed to be recoverable in the future from known reservoirs under current operating conditions.
McGill said that, in recent years, the final EIA reserve report has tended to show reserve additions on the high side of AGA's estimated range of total additions. If AGA is correct, and 1997 reserve additions exceed 100%, then gas reserves will have increased for the fourth straight year.
The report also said new gas additions (extensions and discoveries) were about 96% of total reserve additions among the top 30 companies. This percentage continues the positive trend of recent years. With increased drilling and gas well completion totals in 1997, more new gas was discovered by the holders of large gas reserves.
AGA has developed annual estimates of U.S. reserve additions and replacement for more than a decade. Estimates are calculated by examining the reserves activity of 30 large reserve holders in the U.S. through annual reports and Form 10Ks submitted to the Securities and Exchange Commission.
The current company sample includes petroleum majors, integrated gas companies, and large independent gas producers.
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