Tuesday, November 24, 2015

2014 U.S. Natural Gas Proved Reserves Up 9.8% to 388.8 Tcf

The EIA announced its annual assessment of proved reserves of oil and gas in the U.S. for year end 2014  It concluded that proved natural gas reserves had increased 34.8 Tcf to 338.8 Tcf, an increase of 9.8%.  The Haynesville Shale is the fifth largest natural gas field (using 2013 PR numbers), while the Marcellus Shale is the largest.  With proved reserve increases, West Virginia became the fourth largest state in terms of proved reserves this year, surpassed only by Texas, Pennsylvania and Oklahoma).

A 10% increase in proved reserves seems high given the low price of gas, but it is likely a nod to technological advances and improved understanding of how to tap gas from existing fields.  This has become evident in the Haynesville as companies have fine tuned their production approach to greatly increase expected ultimate recoveries.  The official definition of proved reserves:
"Proved reserves are estimated volumes of hydrocarbon resources that analysis of geologic and engineering data demonstrates with reasonable certainty are recoverable under existing economic and operating conditions. Reserves estimates change from year to year as new discoveries are made, as existing fields are more thoroughly appraised, as existing reserves are produced, and as prices and technologies change."

No comments: