Spurred by high prices, the natural gas exploration and production industry blew away the record books in 2000, recording an “unusual” 6% increase in proved reserves, “by far the largest increase since EIA (Energy Information Administration) has been estimating the nation’s proved gas reserves.”

Proved reserves went from 167,406 Bcf in 1999 to 177,427 Bcf in 2000, and along the way replaced 152% of the year’s production, EIA said in its “Advance Summary: U.S. Crude Oil, Natural Gas, and Natural Gas Liquids Reserves 2000 Annual Report,” issued Friday.

“Such unusually large increases should not be expected very often in the future,” EIA cautioned, “because the number of frontier areas is diminishing. In addition the combination of a large increase in the number of exploratory wells and a large increase in the total discoveries per exploratory well is, in itself, quite unusual”

Most of the reserve increases were in Texas, New Mexico, and the coalbed methane fields of Colorado, Wyoming and Utah. But, “Oklahoma and the Gulf of Mexico, which had significant gas declines in 1999, rebounded in 2000.”

Natural gas prices were up 66% year-over-year to $3.60 per Mcf in 2000, compared to $2.17/Mcf in 1999. “Yearend average prices were an exceptionally high $6.35/Mcf,” EIA said.

U.S. total discoveries of dry gas reserves were 19,138 Bcf or 75% more than the prior 10-year average and 77% more than in 1999. New field discoveries were 1,983 Bcf, or 27% more than 1999 and 35% more than the 10 year average.

Field extensions were 14,787 Bcf, more than twice the extensions in 1999 and more than twice the 10 year average of 7,119 Bcf. New reservoir discoveries in old fields were 2,368 Bcf, up 8% from 1999. Natural gas net revisions and adjustments were 6,071 Bcf. The net of sales and acquisitions of dry natural gas proved reserves was 4,031 Bcf.

Coalbed methane accounted for 9% of gas reserves, while its production in 2000 was 7% of overall production.

Other stellar statistics:

With all that, however, U.S. gas production only increased by over 1% in 2000 to 19,219 Bcf, from 18,928 Bcf in 1999.

Natural gas liquids reserves rose by the same 6% that dry gas increased, growing to 8,345 million barrels in 2000. Natural gas liquids contributed 27% of the overall 2% increase in the total proved reserves of liquid hydrocarbons, which stood at 30,390 million gallons.

U.S. crude oil proved reserves inched upward by 1.3%, replacing 115% of oil production, with the majority of additions from the deepwater Gulf of Mexico Federal Offshore frontier area. Total crude oil reserves stood at 22,045 million barrels at the end of 2000.

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