• 4 minutes England Running Out of Water?
  • 7 minutes Trump to Make Allies Pay More to Host US Bases
  • 10 minutes U.S. Shale Output may Start Dropping Next Year
  • 14 minutes Washington Eyes Crackdown On OPEC
  • 3 hours One Last Warning For The U.S. Shale Patch
  • 10 hours Russian Effect: U.S. May Soon Pause Preparations For Delivering F-35s To Turkey
  • 6 hours Chile Tests Floating Solar Farm
  • 2 hours China's Expansion: Italy Leads Europe Into China’s Embrace
  • 17 hours Poll: Will Renewables Save the World?
  • 1 hour China's E-Buses Killing Diesel Demand
  • 17 hours New Rebate For EVs in Canada
  • 8 hours Trump Tariffs On China Working
  • 8 hours Biomass, Ethanol No Longer Green
  • 11 hours Trump sells out his base to please Wallstreet and Oil industry
  • 1 day Boeing Faces Safety Questions After Second 737 Crash In Five Months
  • 20 hours The Political Debacle: Brexit delayed
  • 15 hours 3 Pipes: EPIC 900K, CACTUS II 670K, GREY OAKS 800K
  • 11 hours Read: OPEC THREATENED TO KILL US SHALE
Italy Turns Its Back On Russian Gas

Italy Turns Its Back On Russian Gas

Russia’s influence on European gas…

Morgan Stanley: Oil To Rise To $75 This Summer

Morgan Stanley: Oil To Rise To $75 This Summer

Investment bank Morgan Stanley sees…

U.S. Crude Reserves Hit Highest Levels in nearly 40 Years

New data from the Energy Information Administration shows that crude reserves in the U.S. hit their highest levels since 1976. The EIA released a report on April 10, entitled “U.S. Crude Oil and Natural Gas Proved Reserves (2012),” which indicated that 2012 marked the fourth year in a row that proven oil reserves increased. Not only that, but 2012 marked the largest increase in oil reserves for a single year – 4.5 billion barrels – since 1970. That is a remarkable feat since 1970 was the year that vast reserves, around 10 billion barrels, were booked in Alaska.

 US Crude Oil and Lease Condensate Proved Reserves

Why the rapid growth in crude reserves when it appears that oil is becoming increasingly difficult to find and exploit? The EIA says that improved technology is allowing companies to find greater and greater amounts of oil. Moreover, high oil prices and several years of successful production has companies exploring for oil at an elevated rate.

Related Article: Oil Output Here Just Hit An All-Time High

Most of that recent production has come from tight oil in places like the Bakken and the Eagle Ford basin. In fact, tight oil accounted for 22% of proved reserves in 2012. By state, Texas posted the largest increase in proved reserves between 2011 and 2012, adding 3 billion barrels. North Dakota came in second with 1.1 billion barrels. The Gulf of Mexico federal offshore area also added a smaller 137,000 barrels.

Proved reserves do not mean that successful production is a 100% certainty. Proved reserves indicate that the oil can be recoverable in future years with “reasonable certainty” under existing economic and operating conditions. For example, if oil prices dropped significantly, some of the more expensive, harder-to-reach oil would not necessarily be accessible. For now, there is no indication that drilling will slow down in the United States.

By James Burgess of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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