US crude oil and natural gas proved reserves, year-end 2016
In 2016, total natural gas1 proved reserves in the United States increased by 5% from 324.3 trillion cubic feet (Tcf) to 341.1 Tcf—an increase of 16.8 Tcf. Over the same period, while proved reserves of U.S. crude oil and lease condensate rose 3% onshore in the Lower 48 states, declines in oil reserves in Alaska and the Federal Offshore led to virtually the same total U.S. crude oil and lease condensate at year-end 2016, at 35.2 billion barrels. Despite increasing prices later in 2016, the average first-of-the-month prices used to calculate reserves dropped for both natural gas (down 6%) and for crude oil (down 15%) compared to 2015.
Oil highlights
U.S. proved reserves remained at 35.2 billion barrels at year-end 2016 (net decline of 17 million barrels)
Proved reserves for crude oil and lease condensate increased 3% (846 million barrels) onshore in the Lower 48 states (U.S. total not including Alaska, Federal Offshore, and State Offshore reserves)
Gains in proved reserves onshore in the Lower 48 states were offset by declines of 865 million barrels in proved reserves in Alaska and the Federal Offshore. (Development costs in these areas are typically higher and can be prohibitive in a lower oil price environment)
Texas and Oklahoma experienced the largest net increases in proved reserves of crude oil and lease condensate of all states in 2016, mostly from development of liquids-rich shale plays in the Permian Basin (Wolfcamp/Bone Spring formations) and SCOOP and STACK plays in the Anadarko Basin
U.S. production of crude oil and lease condensate decreased by 6% from 2015
U.S. oil reserve additions from new fields, identification of new reservoirs in previously discovered fields, and extensions of existing fields effectively offset production to keep total reserves constant
Natural gas highlights
Proved reserves of natural gas increased 5% (16.8 Tcf) to 341.1 Tcf at year-end 2016
Pennsylvania added 6.1 Tcf of natural gas proved reserves, the largest net increase of all states in 2016 as a result of development of the Marcellus shale in the Appalachian Basin
The next largest net gains in natural gas proved reserves by volume in 2016 were in Oklahoma (3.7 Tcf) and Ohio (3.1 Tcf), as a result of development of the SCOOP and STACK plays and the Utica shale play
U.S. production of total natural gas decreased by 1% from 2015
The share of natural gas from shale compared with total U.S. natural gas proved reserves increased from 54% in 2015 to 62% in 2016
U.S. natural gas reserve additions from new fields, identification of new reservoirs in previously discovered fields, and extensions of existing fields exceeded production by more than 30%
Proved reserves are estimated volumes of hydrocarbon resources that analysis of geologic and engineering data demonstrates with reasonable certainty2 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.
National summary
In 2016, total U.S. crude oil and lease condensate proved reserves remained at 35.2 billion barrels. Proved reserves of U.S. total natural gas increased 16.8 trillion cubic feet (Tcf) to 341.1 Tcf in 2016 (Table 1). Net revisions in 2016 were significantly below what EIA reported in 20153, while extensions and discoveries remained at about the same level.
Source : Strategic Research Institute