Record natural gas drilling is growing gas reserve additions in both the United States and Canada, leading to full reserve replacement in both countries, according to Ziff Energy Group.

The Calgary-based consultant said overall gas reserve replacement in the U.S. was 172% of 2005 production, with 119% (10.6 Tcf) replacement by the drillbit. Canada’s overall replacement was 122%, with 115% (5.8 Tcf) by the drillbit.

Ziff’s reserve replacement rate does not include acquisitions or divestments. Alaskan gas reserves and production also are excluded from reserve replacement and reserve life index calculations. Ziff gathered data from companies representing 48% (8.9 Tcf/year) of U.S. Lower 48 gas production (18.7 Tcf/year) and 81% (5 Tcf/year) of Canadian gas production (6.2 Tcf/year).

Reserve replacement leaders, according to Ziff, were ExxonMobil, 290%, and BP, 223%. The top 30 publicly traded producers for each country were analyzed.

“Companies’ future gas production should grow when gas reserve additions exceed prior year’s gas production,” said Cameron Gingrich, Ziff lead project analyst. “However, we must recognize that the average reserve-to-production ratio for these U.S. Lower 48 companies is over 12 years. This means that in spite of high natural gas commodity prices, large lead times are required to move last year’s gains into the pipeline system for ultimate consumption.”

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