Nick Snow
Washington Correspondent
WASHINGTON, DC, Apr. 3 -- US natural gas reserves at the end of 2005 were at their highest level since 1984, the American Gas Association reported Mar. 31.
Reserves grew to more than 197 tcf from 193 tcf at the end of 2004, AGA said. The annual analysis is based on figures reported by the 30 largest domestic reserves holders, who account for about half of the US total.
Production growth hasn't followed the increase in reserves, noted Chris McGill, AGA's managing director of policy analysis.
"In 2005, over 27,000 gas wells were completed in the United States, which is the highest level of completions on record," he said. "However, most of these wells were drilled onshore in shale, tight sands, and coal seams, which are low-yield and slow-yield resources."
AGA said operators produced 18.3 tcf of gas in the US last year, down slightly from 2004, largely due to hurricanes in the Gulf of Mexico.
At the same time, drilling and revisions to earlier estimates added as much as 35.7 tcf to reserves, allowing total domestic reserves to grow for a 7th consecutive year.
AGA expects production capacity to remain at 18-19 tcf/year for the foreseeable future unless policies change to increase producer access to US resources.
Contact Nick Snow at [email protected].
