AGA: Gas reserves additions exceed output

April 5, 2005
Estimates of US reserves of natural gas for yearend 2004 are expected to exceed 190 tcf for the first time since 1986, yet producers still are "running in place" to keep up with demand, the American Gas Association (AGA) said.

By OGJ editors

HOUSTON, Apr. 5 -- Estimates of US reserves of natural gas for yearend 2004 are expected to exceed 190 tcf for the first time since 1986, yet producers still are "running in place" to keep up with demand, the American Gas Association (AGA) said.

In its Preliminary Findings Concerning 2004 Natural Gas Reserves, AGA said US producers added 24.1-32.7 tcf last year while producing 18.8 tcf.

The study calculated US reserves addition and production estimates from financial reports from 30 publicly traded companies that hold large gas reserves.

More than 23,000 gas wells were completed in the US last year, a record. Of 2004 gas production, the 30 holders of large reserves accounted for 48% while the rest came from thousands of independent producers, AGA said.

Independent producers completed most of their wells in shale, tight sands, and coal seams. This trend raises future supply questions because unconventional reservoirs tend to add small increments of production capability, AGA said. Exploration targeting higher-yield reservoirs has languished.