Two associations report strong U.S. gas reserves replacement in 1993.
The Natural Gas Supply Association and the American Gas Association based their estimates on data from the 30 largest producers' annual reports and filings they made with the Securities & Exchange Commission.
NGSA said the 30 largest gas reserve owners produced 8.4 tcf in 1993 and acquired reserve additions of 7.3 tcf for an 87% replacement rate vs. a 69% rate in 1992. At the beginning of 1993 the companies held 87.4 tcf of gas reserves vs. 86.1 tcf at the end of the year.
Phil Budzik, NGSA federal regulatory affairs director, said, "Given that the reserve replacement rate of the top 30 is usually lower than that reported for the rest of the industry, it is possible the industry as a whole might reach or surpass 100% reserve replacement in 1993."
The U.S. Energy Information Administration is scheduled to release reserve replacement data in September.
Budzik said, "The increase in reserve replacements is another indication of growing corporate commitment to the natural gas marketplace. Higher gas prices appear to be the major factor, and higher 1993 reserve replacement indicates that the gas market is properly functioning to ensure adequate gas in the marketplace at competitive prices."
AGA ASSESSMENT
In a separate survey, AGA reported 1993 reserve additions will amount to 85 110% of production.
AGA Pres. Mike Baly explained, "In 1993, gas drilling was up, gas well completions exceeded oil well completions for the first time in history, and demand for gas continued to increase."
AGA said 71% of 1993 reserve additions were from discoveries and field extensions, while the balance came from revision of estimates for existing fields.
Total proved reserve additions were expected to be 15.3 19.8 tcf.
Baly said the 1993 replacement level is up from 88% in 1992 and conforms to the previous 10 year average of more than 90%/year.
U.S. gas production in 1993 is estimated at 18 tcf.
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