In its most recent analysis available, the U.S. Energy Information Administration noted that the average prices for both crude oil and natural gas in the U.S. during 2022 were the highest since 2008. Accordingly, U.S. proved reserves of crude oil and natural gas hit record highs in 2022.
World Oil staff
Late last April (2024), the U.S. Energy Information Administration (EIA) released its most recent reporting and analysis of U.S. oil and gas reserves. Analysts at EIA found that both oil and gas reserves hit new all-time highs. No doubt, these reserve increases were helped along by commodity prices that were at their highest levels since 2008.
“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 because of 1) Price and cost changes; 2) New discoveries; 3) Thorough appraisals of existing fields; 4) Existing reserves production; and 5) New and improved techniques and technologies.
To prepare this report, EIA collected independently developed estimates of proved reserves with Form EIA-23L from a sample of U.S. operators of oil and natural gas fields. EIA used this sample to further estimate the portion of proved reserves from operators who do not report. For this particular reserves report, EIA received responses from 397 of 404 sampled operators, which provided coverage of about 90% of proved reserves of oil and 93% of proved reserves of natural gas at the national level. EIA developed estimates for reserves located in the U.S., each state individually, and some state subdivisions. States and regions with subdivisions include California, Louisiana, New Mexico, Texas, and the federal offshore Gulf of Mexico.
Crude oil highlights. U.S. crude oil and lease condensate proved reserves increased 9%, from 44.4 Bbbl at year-end 2021 to 48.3 Bbbl at year-end 2022, Table 1 and Fig. 1. Not surprisingly, U.S. crude oil and lease condensate production increased 6% during 2022. In Texas, which has more proved reserves of crude oil and lease condensate than any other state, proved reserves increased 9% during 2022 (1.7 Bbbl), the largest net increase in any state, Table 1. In New Mexico, crude oil and lease condensate proved reserves increased 26%, the second-largest net increase (1.3 Bbbl). In North Dakota, proved reserves increased 14%, the third-largest increase (0.6 Bbbl). The largest net decrease, 13%, in proved reserves of crude oil and lease condensate during 2022 was in California (225 MMbbl), Table 1. The 12-month, first-day-of-the-month average spot price for West Texas Intermediate (WTI) crude oil at Cushing, Okla., increased 43%, from $66.26/bbl in 2021 to $94.54/bbl in 2022.
Natural gas highlights. Proved reserves of U.S. natural gas increased 10%, from 625.4 Tcf at year-end 2021 to 691.0 Tcf at year-end 2022, establishing a new record for natural gas proved reserves in the U.S. for a second consecutive year, Table 2 and Fig. 1. Natural gas proved reserves in Alaska increased 25% in 2022, raising that state’s total from 99.8 Tcf to 125.2 Tcf—the largest increase of all states in 2022. Texas had the second-largest increase in proved reserves of natural gas in 2022 (21.2 Tcf, or 14%), and New Mexico had the third-largest increase (9.9 Tcf, or 27%). Operators in Pennsylvania reported the largest net decrease in proved reserves of natural gas in 2022 (652 Bcf, or 0.6%). In 2022, U.S. natural gas exports were 6.9 Tcf, the highest volume on record. The 12-month, first-day-of-the-month average spot price for natural gas at the Louisiana Henry Hub increased 71% in 2022, from $3.67 per million British thermal units (MMBtu) in 2021 to $6.29/MMBtu in 2022, which was the highest annual average price since 2008. WO