EIA: US proved oil reserves increase 16% in 2021

Jan. 3, 2023
Proved reserves of US crude oil and lease condensate increased by 6.2 billion bbl (+16%) to 44.4 billion bbl at yearend 2021 from 38.2 billion bbl at yearend 2020, according to a recent US Energy Information Administration report.

Proved reserves of US crude oil and lease condensate increased by 6.2 billion bbl (+16%) to 44.4 billion bbl at yearend 2021 from 38.2 billion bbl at yearend 2020, according to the US Energy Information Administration (EIA)’s latest Annual Report of Domestic Oil and Gas Reserves at end 2022.

In 2021, proved US reserves of combined crude oil and lease condensate increased in 7 of the 8 states with the most oil reserves. Texas, which holds more proved reserves of crude oil and lease condensate than any other state, saw the largest net increase in proved reserves in 2021 (1.9 billion bbl, 12%). New Mexico saw the second-largest net increase of proved reserves of crude oil and lease condensate (1.4 billion bbl, 39%), and Alaska the third largest (0.7 billion bbl, 31%).

The largest net decrease in proved reserves of crude oil and lease condensate in 2021 was reported by operators in Oklahoma (-19 million bbl, 1%).

The 12-month, first-day-of-the-month average spot price for West Texas Intermediate (WTI) crude oil at Cushing, Okla., increased by 67% to $66.26/bbl in 2021 from $39.66/bbl in 2020.

According to EIA’s report, proved reserves of US natural gas increased by 152.1 tcf (32%) to 625.4 tcf at yearend 2021 from 473.3 tcf at yearend 2020, establishing a new record for US natural gas proved reserves.

Proved US natural gas reserves increased in each of the eight states with the most natural gas reserves in 2021. Alaska, for the second consecutive year, saw a substantial volume of proved natural gas reserves added in 2021. The annual total of natural gas proved reserves in Alaska increased in 2021 by 63.3 tcf, almost tripling the state’s total to 99.8 tcf from 36.5 tcf—the largest increase of all states in 2021.

Texas saw the second-largest increase in proved reserves of natural gas in 2021 (34.3 tcf, 30%), and New Mexico the third-largest increase (10 tcf, 38%).

The 12-month, first day-of-the-month average spot price for natural gas at the Louisiana Henry Hub increased by 84% to $3.67/MMbtu in 2021 from $1.99/MMbtu in 2020, which was the highest annual average price since 2014.