X

Sign Up To Our Free Newsletter

Join Now

Thanks for subscribing to our free newsletter!

ERROR

  • 4 minutes IMPORTANT ARTICLE BY OILPRICE.COM EDITOR - "Naked Short Selling: The Truth Is Much Worse Than You Have Been Told"
  • 5 minutes “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 7 minutes United States LNG Exports Reach Third Place
  • 19 mins Texas forced to have rolling black outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 17 hours Wednesday Nikki Haley reached out to Trump for meeting at Mar-a-lago. Trump said No ! You blew it Nikki . . .
  • 23 hours NYT:  The Supreme Court’s order (Re:  Trump’s tax returns) set in motion a series of events that could lead to the startling possibility of a criminal trial of a former U.S. president
  • 2 hours Speaker Pelosi, "Tear Down This Wall"
  • 2 hours Disaster looming in UK offshore wind power
  • 2 hours Retired RAF pilot wins legal challenge over a wind farm
  • 1 hour The World Economic Forum & Davos - Setting the agenda on fossil fuels, global regulations, etc.
  • 1 hour The latest GOP nonsense on Texas shows us the future Republicans want
  • 51 mins Chance for (Saudi)Arabian peninsula having giant onshore Gas too?
  • 2 hours U.S. Presidential Elections Status - Electoral Votes
  • 8 hours Minerals, Mining and Industrial Ecology
  • 4 hours Pipeline vs Train vs Ship to Transport Crude Oil.

EIA: U.S. Natural Gas Reserves Slip Amid Low Prices

Natural gas reserves in the United States fell by 2 percent in 2019 due to low prices, the Energy Information Administration said in an update on the country’s oil and gas reserves.

Henry Hub prices for natural gas in 2019 fell by more than 21 percent from 2018, the authority noted, adding that despite the modest decline, the United States had enough discoveries and production extensions of gas to replace 2019 production going forward.

In oil, reserves remained largely unchanged in 2019 despite a similar price decline, the EIA also said. In fact, proven crude oil reserves rose in that year by 367 million barrels. A decline in lease condensate reserves, however, made for a net decline in crude oil plus condensate reserves.

Perhaps surprisingly, it wasn’t the shale oil plays that accounted for the biggest increase in oil reserves—it was Alaska. New Mexico, which houses part of the Permian shale play, accounted for the second-largest reserve increase, and Texas came in third.

In natural gas, Ohio saw the biggest addition of reserves, at 10.4 trillion cu ft, but Texas saw a decline in reserves equal to 12 trillion cu ft. Three shale plays—the Eagle Ford, the Barnett, and the Bossier play—all saw sizeable reserve drops in 2019.

Last year likely saw even further declines in gas reserves and probably a decline in crude oil reserves, too, after the dive prices took in early spring on the back of the short but meaningful Saudi-Russian oil prices war, which was promptly followed by the coronavirus pandemic.

As producers cut their exploration and production budgets and many started on a path to diversification into renewable energy, chances are proven fossil fuel reserves in the United States dipped.

Prices have begun recovering lately, but the rebound has not been strong enough to merit a return to an exploration boom. Some doubt they will recover enough to justify more exploration at this point, although others foresee a short-term supply crunch that may motivate investment in exploration and production growth.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News