Stronger crude oil and natural gas prices combined with continuing development of shales and low-permeability formations drove US proved reserves to new record levels, according to the US Crude Oil & Natural Gas Proved Reserves Report (Yearend 2017), released by the US Energy Information Administration.
Proved US reserves of crude oil increased 19.5% from yearend 2016, reaching 39.2 billion bbl and surpassing the previous peak level of proved US crude oil reserves of 39 billion bbl set in 1970.
Proved gas reserves increased 36.1% to 464.3 tcf at yearend 2017, breaking a 2014 record for total proved gas reserves.
Both US proved reserves of oil and gas are nearly double their levels from a decade ago.
The annual average spot price for West Texas Intermediate crude oil at Cushing, Okla., increased 20% in 2017. On Dec. 29, 2017, the WTI spot price exceeded $60/bbl for the first time since June 2015.
Producers in Texas added 3.3 billion bbl of oil and lease condensate proved reserves, the largest net increase of all states in 2017. This growth in proved reserves was a result of increased prices and development in the Permian basin of the Spraberry Trend and the Wolfcamp-Bone Spring shale play. The next largest gains in oil and lease condensate proved reserves in 2017 were in New Mexico (1 billion bbl) and in the federal offshore Gulf of Mexico (729 million bbl).
The annual average spot price for gas at Louisiana’s Henry Hub increased 21% in 2017. Natural gas spot prices throughout 2017 at Henry Hub did not vary much from the annual average price of $2.99/MMbtu. The US total net increase in proved reserves of gas was 123.2 tcf, or 36.1%, for a total of 464.3 tcf. US production of natural gas increased 4% from 2016.
Producers in Pennsylvania added 28.1 tcf of proved gas reserves, the largest net increase of all states in 2017, as a result of increased prices and development of the Marcellus and Utica shale plays. The next-largest net gains in proved gas reserves came in Texas (26.9 tcf) and Louisiana (18.4 tcf) as a result of development of 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 proved gas reserves from shale increased from 62% of total proved gas reserves in 2016 to 66% in 2017.
The estimated volume of gas plant liquids contained in proved reserves of total gas increased from 14.7 billion bbl in 2016 to 19.2 billion bbl in 2017—a 30% increase.
