LOWER 48 GAS RESERVES RISING

Lower 48 gas producers added more reserves than they produced in 1990, American Gas Association says. AGA estimates Lower 48 reserve additions of 17.8-21.5 tcf were 105-128% of production, almost a record high. Its preliminary findings show 70% of the reserve additions were from discoveries and extensions and 30% in existing fields. AGA used data from 30 companies with the largest U.S. gas reserves published in annual reports.

May 6, 1991

2 min read

Lower 48 gas producers added more reserves than they produced in 1990, American Gas Association says.

AGA estimates Lower 48 reserve additions of 17.8-21.5 tcf were 105-128% of production, almost a record high.

Its preliminary findings show 70% of the reserve additions were from discoveries and extensions and 30% in existing fields.

AGA used data from 30 companies with the largest U.S. gas reserves published in annual reports.

STRONG PERFORMANCE

AGA Pres. Mike Baly said, "This strong addition to reserves performance, which could be as much as 13-36% higher than in 1989, reflects the cumulative effect of advances in technology that have enhanced natural gas exploration and production techniques."

It also compares with the average level of 93% during 1981-89 and 46% during the 11 years prior to enactment of gas deregulation legislation in 1978.

AGA said the top 30 reserve holders and independent companies increased gas well drilling 10% in 1990 to about 10,000 completions. Amoco Corp., Exxon Corp., Texaco Inc., Phillips Petroleum Co., Shell Oil Co., and BP America Inc. each reported more than 500 bcf of reserve additions in 1990.

It said reserves of the major gas pipeline companies increased to 17.1 tcf in 1990 from 15.9 tcf in 1989. The pipeline companies had 1.4 tcf of reserve additions in 1990 vs. 1.5 tcf in 1989 but replaced 100% of production in 1990 and 115% in 1989.

DRILLING TRENDS

AGA said the top gas exploration areas remain the Gulf of Mexico, Rocky Mountains, Midcontinent, and the San Juan basin.

"Statistics from the Gulf of Mexico concerning new major discoveries, often in deeper water, are strong evidence that this area will continue to be a dominant gas production area for many years."

AGA noted, "Reduced levels of drilling in recent years have affected drilling trends. Smaller drilling programs have limited the activity of producers to the highest quality prospects in the most attractive gas prone provinces with careful attention paid to geologic inputs.

"Though gas well completions increased in 1990, the drilling program was apparently a very selective and efficient development of gas prone areas."