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2018-11-30 11:40:00

U.S. OIL GAS RESERVES 2017

U.S. OIL GAS RESERVES 2017

U.S. EIA - Stronger oil and natural gas prices combined with continuing development of shales and low permeability formations drove producers of crude oil and natural gas in the United States to report new all-time record levels of proved reserves for both fuels in 2017. Total U.S. oil reserves in 2017 exceeded a brief, one-year, 47-year-old record, highlighting the importance of crude oil development in shales and low permeability plays, mainly in the Southwest. The new record for natural gas extends a longer-term trend of development, mainly in shale plays in the Northeast. Both U.S. proved reserves of crude oil and natural gas are approximately double their levels from a decade ago. These new proved reserves records were established in 2017 despite production of crude oil at levels not seen since 1972, and record natural gas production.

Highlights are listed below.

Oil highlights

  • Proved reserves of crude oil in the United States increased 19.5% (6.4 billion barrels) to 39.2 billion barrels at Year-End 2017, setting a new U.S. record for crude oil proved reserves. The previous record was 39.0 billion barrels set in 1970.
  • Proved reserves of lease condensate in the United States increased 16% (0.4 billion barrels) to 2.8 billion barrels at Year-End 2017. Since 2009, to provide a clearer picture of U.S. liquid fuel resources, EIA features combined proved reserves of U.S. crude oil and lease condensate in its reporting.
  • U.S. production of crude oil and lease condensate increased by 6% from 2016 to year-end 2017. Crude oil production in 2017 reached its highest level since 1972.
  • The annual average spot price for a barrel of West Texas Intermediate (WTI) crude oil at Cushing, Oklahoma increased 20% in 2017, from $42.59 in 2016 to $51.03. At the end of 2017, the WTI spot price exceeded $60 per barrel for the first time since June 2015.
  • Producers in Texas added 3.3 billion barrels of crude oil and lease condensate proved reserves, the largest net increase of all states in 2017. The increase was a result of increased prices and development in the Permian Basin of the Spraberry Trend and the Wolfcamp/Bone Spring shale play.
  • The Wolfcamp/Bone Spring shale play in the Permian Basin surpassed the Bakken/Three Forks play in the Williston Basin to become the largest oil-producing tight play in the United States in 2017.
  • The next largest net gains in crude oil and lease condensate proved reserves in 2017 were in New Mexico (1.0 billion barrels) and in the Federal Offshore Gulf of Mexico (729 million barrels).

Natural gas highlights

  • Proved reserves of natural gas increased by 123.2 trillion cubic feet (Tcf) (36.1%) to 464.3 Tcf at year-end 2017—a new U.S. record for total natural gas proved reserves. The previous U.S. record was 388.8 Tcf, set in 2014.
  • U.S. production of total natural gas increased by 4% from 2016 to 2017, reaching a new record level.
  • The share of natural gas from shale compared with total U.S. natural gas proved reserves increased from 62% in 2016 to 66% at year-end 2017.
  • The annual average spot price for natural gas at the Louisiana Henry Hub increased by 21% from $2.47 per million British thermal units (MMBtu) in 2016 to $2.99 per MMBtu in 2017.
  • Producers in Pennsylvania added 28.1 Tcf of natural gas proved 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 natural gas proved reserves by volume in 2017 were 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.

Proved reserves are estimated volumes of hydrocarbon resources that analysis of geologic and engineering data demonstrates with reasonable certainty[1] are recoverable under existing economic and operating conditions. Reserves estimates change from year to year as new discoveries are made, as existing fields are thoroughly appraised, as existing reserves are produced, as prices and costs change, and technologies evolve.

To develop this report, EIA collects independently developed estimates of proved reserves from a sample of operators of U.S. oil and natural gas fields from its survey Form EIA-23L, and then estimates the non-reported portion of proved reserves. Responses were recerived from 412 of 418 sampled operators. Estimates are developed for the United States, each state, and state subdivisions. Within this report, EIA publishes proved reserves for state subdivisions within California, Louisiana, New Mexico, Texas, and the Federal Offshore Gulf of Mexico.

National summary

Table 1. U.S. proved reserves, and reserves changes, 2016–17
  Crude oil
billion barrels
Crude oil and lease condensate
billion barrels
Total natural gas
trillion cubic feet
U.S. proved reserves as of December 31, 2016 32.8 35.2 341.1
Extensions and discoveries 5.1 5.7 70.8
Net revisions 2.6 2.7 41.3
Net adjustments, sales, acquisitions 1.8 1.8 41.4
Estimated production -3.1 -3.4 -30.4
Net additions to U.S. proved reserves 6.4 6.8 123.2
U.S. proved reserves as of December 31, 2017 39.2 42.0 464.3
Percent change in U.S. proved reserves 19.5% 19.2% 36.1%
Notes: Total natural gas includes natural gas plant liquids. Columns may not add to total because of independent rounding.
Source: U.S. Energy Information Administration, Form EIA-23L, Annual Report of Domestic Oil and Gas Reserves

Both U.S. proved reserves of crude oil and natural gas are approximately double their levels from a decade ago. Prior to 1997, natural gas and crude oil reserves had been declining since the 1970s (Figure 1). In 1997, the downward trend for natural gas reversed because of innovations in horizontal drilling and hydraulic fracturing techniques that successfully increased natural gas proved reserves and production from shale formations. In 2008, the downward trend for crude oil reversed when innovations in horizontal drilling and hydraulic fracturing were applied to tight oil-bearing formations, such as the Bakken Shale of the Williston basin. The upward trends have continued, and both crude oil and natural gas proved reserves reached new U.S. record levels at Year-End 2017.

Proved reserves of combined crude oil and lease condensate increased in all of the top seven U.S. oil reserves states in 2017 (Figure 2). In 2017, Texas held the largest proved reserves of any state and saw the largest volumetric increase—a net increase of 3.3 billion barrels of crude oil and lease condensate proved reserves from 2016 to 2017. Most reserves additions, largely due to additional drilling and exploration in previously discovered reservoirs, were made in the Spraberry Trend Area and Wolfcamp shale play in west Texas (Texas Railroad Commission Districts 8, 8A, and 7C). EOG Resources, Inc.—the largest oil producer in Texas[2]—attributed its success in the Wolfcamp shale play (Delaware Basin) in 2017 to lateral length extensions, precision targeting, high-density stimulations, and cost reductions. The average lateral length of completed wells in the play increased from approximately 5,200 feet in 2016 to approximately 6,100 feet in 2017. Precision targeting refers to advances in logging while drilling technology (both sensors and software) that have improved the real-time geosteering process of horizontal drilling,[3] allowing operators to identify the best rock and achieve precise wellbore placement within it. High-density stimulations (hydraulic fracturing) refers to an increase in the amount of perforation clusters per hydraulic fracturing stage and also the proppant load per lateral foot (more fractures, more proppant per fracture). EOG Resources cites in its 2017 Annual Report that ownership of a sand mine and two sand processing centers in Hood County, Texas, was significant in reducing operating costs in 2017.

New Mexico had the second-largest proved reserves increase—a net addition of 1.0 billion barrels of crude oil and lease condensate proved reserves. Success in the Permian Basin (see above) also applied to Wolfcamp/Bone Springs shale play wells in eastern New Mexico. The third-largest net increase in proved reserves of crude oil and lease condensate was in the Federal Offshore Gulf of Mexico (GOM) at 729 million barrels. Producers brought seven new projects and expansions online in 2016 in the GOM and ramped up production in 2017. Another two projects came online in 2017[4].

Proved natural gas reserves increased in each of the top eight U.S. natural gas reserves states in 2017 (Figure 3). Pennsylvania had the largest net increase in proved natural gas reserves of any state, adding 28.1 Tcf of proved natural gas reserves in the Marcellus and Utica shale plays. EQT Corporation announced on December 13, 2017, that it had successfully completed the longest lateral by any operator in the Marcellus shale play—the Haywood H18 well in Washington County, Pennsylvania, has a completed lateral length of 17,400 feet (more than three miles)[5]—and that the company plans to drill 27 Marcellus wells at 17,000 feet or longer in 2018.

Texas had the second-largest net increase, adding 26.9 Tcf of proved natural gas reserves—the largest portion of the increase came from associated-dissolved natural gas proved reserves that accompanied the gains in crude oil proved reserves in the Permian Basin. The third-largest net increase in proved natural gas reserves was in Louisiana, where operators added 18.4 Tcf of proved reserves developing the Haynesville/Bossier shale play.

In 2017, U.S. crude oil and lease condensate production increased 178 million barrels (6%) from 2016 production, and imports of crude oil increased 35 million barrels (1%) from the 2016 level (Figure 4).

U.S. natural gas production increased 4% (1.2 Tcf) in 2017, and natural gas imports increased 36 Bcf (1%) from the 2016 level (Figure 5).

 

 

 More information is here.

 

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Tags: USA, OIL, GAS, RESERVES