US oil and natural gas reserves rise – again

Proved reserves of US crude oil increased in 2014 for the sixth year in a row, according to the US Energy Information Administration (EIA)’s US Crude Oil and Natural Gas Proved Reserves, 2014. The report says that US oil reserves rose 9% in 2014, and now exceed 39bn barrels for the first time since 1972. And US natural gas reserves also increased by 10% in 2014 to a record 389tn cubic feet (tcf).

At the state level, Texas had the largest increase in proved reserves in 2014 – around 2,000mn barrels (60% of the nation’s total 2014 net increase of 3,400mn barrels). Most of the new oil reserves were added in the Texas portion of the Permian Basin and the Eagle Ford Shale play. North Dakota had the second-largest increase – a net gain of 362mn barrels – most of which were added in the Bakken tight oil play of the Williston Basin.

On gas, Pennsylvania added 10.4 tcf of natural gas proved reserves (the largest net increase for any state in 2014) driven by continued development of the Marcellus Shale play. Texas added 8 tcf of natural gas reserves, mostly from the Eagle Ford Shale play and natural gas associated with the state’s gain in oil reserves in the Permian Basin. Natural gas from shale formations formed 51% of the US total of natural gas proved reserves in 2014.

US production of both oil and natural gas also increased in 2014. Production of crude oil increased by around 17% (rising from 7.4mn to 8.7mn barrels per day), while US production of natural gas increased by 6% (rising from approximately 73bn to 77bn cubic feet per day).

However, the EIA also says that sustained lower prices for crude oil and natural gas have curtailed oil and gas drilling and reduced operating economics in 2015. This will impact the end-of-year 2015 reserve figures.