Lower crude oil and natural gas prices reversed a two-year trend of record-high proved reserves in the United States in 2019 as operators downgraded their estimates of their total proven reserves, the Energy Information Administration (EIA) said Friday.
The EIA’s annual report showed that proven crude oil and lease condensate reserves remained virtually unchanged in 2019 compared to 2018, with a very slight increase of 0.1 percent. In contrast, proven natural gas reserves fell 1.9 percent, according to data from EIA through the end of 2019.
In that year, crude oil prices were generally lower than 2018 oil prices, with the price of the US benchmark, West Texas Intermediate (WTI) crude oil, averaging $ 57 a barrel, down $ 7 a barrel compared to 2018.
“Lower crude oil prices in 2019 caused many operators to cut their overall estimates of proven reserves, although proven reserves increased slightly through expansions and discoveries,” said the EIA.
In comparison, higher oil and natural gas prices in 2018 pushed proven oil and gas reserves in the United States to new record highs. The proven reserves of oil and natural gas beat the previous year’s record as rising prices and the continued development of shale resources in 2017 helped push US reserves to record levels. In 2018, proven crude oil reserves in the US are up 12 percent.
In 2019, US proven oil reserves remain at the all-time high of 2018 at 47.1 billion barrels, the EIA said in its report. Alaska producers added 259 million barrels of proven reserves of crude oil and lease condensate in 2019, the largest net increase in any state.
In natural gas reserves, proven reserves recorded the first annual decline in the United States since 2015 in 2019, with Texas showing the largest decline with declines in major shale gas areas such as the Eagle Ford, Barnett and Bossier.
Still, total U.S. gas reserves remain at their second-highest level on record, the EIA said.
By Charles Kennedy for Oilprice.com
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