Proved reserves of U.S. natural gas exceeded production by 31% in 2001, and crude oil proved reserve production was up 21%, according to an advance summary released Friday of annual statistics reported by the Energy Information Administration (EIA).

Proved reserves of dry natural gas increased 3.4% in 2001, according to EIA, with reserve additions totaling 131% of domestic dry natural gas production. The report also noted that U.S. natural gas proved reserves have increased in seven of the last eight years.

“The majority of natural gas proved reserves additions, most of which required the application of improved technology, were in the Pinedale Field in Wyoming, the Lobo Trend and Barnett Shale gas fields in Texas, and the Wattenberg Field in Colorado,” EIA reported. “Coal bed methane (CBM) proved reserves and production continued to grow in 2001,” accounting for 9.6% of proved dry gas reserves and 7.9% of dry gas production.” Significant CBM reserves were found in the Powder River Basin’s fields in Wyoming, as well as fields in Colorado.

“This year’s reserves survey found that year 2001 dry natural gas production increased almost 3%, reaching the highest level since 1977 when EIA initiated its proved reserves report series,” according to EIA. The U.S. production estimate of 19.8 Tcf is based on production reported by 1,439 surveyed operators of oil and gas wells. Operators directly reported 97% of the volume and EIA statistically estimated the remaining 3%.

One new Gulf of Mexico deepwater field — Thunder Horse — accounted for a “significant” portion of all new oil reserves, according to EIA. The Thunder Horse Field, located 125 miles southeast of New Orleans at a water depth of 6,000 feet, is expected to be the largest field in the Gulf after it is fully developed by BP (75% stake) and Exxon Mobil (25% stake). Peak production rates are targeted at 250,000 bbl/d of liquids, and 200 MMcf/d of natural gas. The fields could hold more than 1 billion boe (see Daily GPI, Aug. 23).

Oil reserves increased by almost 2% in 2001, and reserve additions were 121% of domestic oil production, a contrast from previous years. Between 1977 and 1996, proved oil reserves declined 17 of 19 years, said EIA, and “in striking contrast,” they have increased four of the last five years.

“New field discoveries of oil in 2001 were at the highest level since Alaska’s Prudhoe Bay Field proved reserves were added in the 1970s,” EIA reported. Most of the proved reserve additions were from the deepwater Gulf and Alaska, both considered frontier areas. Total discoveries of crude oil last year reached 2.6 million bbl, almost twice the reserves found in 2000, and more than three times greater than the average over the past 10 years.

Most of the oil discoveries were in new fields in the two frontier areas, which brought in a total of 1,407 million bbl in 2001 — four times as much as in 2000 and over six times as much as the decade’s average. “Deepwater crude oil proved reserves are now almost three times those in the shallower water of the continental shelf,” according to EIA.

For more information, the “Advance Summary: U.S. Crude Oil, Natural Gas, and Natural Gas Liquids Reserves, 2001 Annual Report” is available on the EIA web site at: www.eia.doe.gov/oil_gas/fwd/adsum2001.html.

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