EIA: U.S. Natural Gas Proved Reserves Reach 30 Year High in 2006

December 5, 2007 // Published as a news service by IHS

Additions to reserves replaced 136% of the dry natural gas produced in 2006. This was the eighth year in a row that U.S. natural gas proved reserves have increased.

Texas led the nation in natural gas reserves additions in 2006 with a 9% increase in dry gas proved reserves due to rapid development of Barnett Shale reservoirs in the Newark East Field.

Advances in horizontal drilling, hydraulic fracturing technology and relatively high natural gas prices supported this development, said EIA.

U.S. crude oil proved reserves declined 4% in 2006. The Gulf of Mexico Federal Offshore and Alaska, two of the largest oil producing areas, respectively reported 10% and 7% declines in crude oil proved reserves. This was due to downward revisions and fewer new discoveries, said EIA.

Utah reported the largest increase in crude oil proved reserves, adding 78 million barrels (a 30% increase from 2005), followed by Colorado and New Mexico.

Domestic natural gas production provides about 21% of the total energy consumed in the U.S. Natural gas production increased in 2006 due to production increases in Texas (Barnett Shale), Louisiana and the Rocky Mountain states (Colorado, Wyoming, Utah and Montana). Gulf of Mexico natural gas production declined the most with a 6% drop.

Domestic crude oil production declined 5% in 2006 due mostly to lower production in Alaska. Part of the decline resulted from an August 2006 shut-in of producing wells in half of the Prudhoe Bay Field for inspection and repair of corrosion in the gathering system.

For the second year in a row Montana had the largest annual oil production increase of any state (6 million barrels; a 20% increase) owing to continued development of the Bakken Formation in the Elm Coulee Field. According to EIA, this relatively new and important oil field is difficult to produce and requires cutting-edge technology for economic production.

For more information visit the EIA web site to read Advance Summary: U.S. Crude Oil, Natural Gas, and Natural Gas Liquids Reserves 2006 Annual Report.

Source: Energy Information Administration (EIA).