Crude oil reserves at start of 2013 reach highest level since 1976

Energy Information Administration ^ | APRIL 10, 2014 Crude o | Energy Information Administration

[thackney]

U.S. crude oil proved reserves rose for the fourth consecutive year in 2012, increasing by 15% to 33 billion barrels, according to the U.S. Crude Oil and Natural Gas Proved Reserves (2012) report released April 10 by the U.S. Energy Information Administration. U.S. crude oil and lease condensate proved reserves were the highest since 1976, and the 2012 increase of 4.5 billion barrels was the largest annual increase since 1970, when 10 billion barrels of Alaskan crude oil were added to U.S. proved reserves. Contributing factors to higher crude oil reserves include increased exploration for liquid hydrocarbons, improved technology for developing tight oil plays, and sustained high historical crude oil prices.

Proved reserves are volumes of oil that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions.

Tight oil plays, which contain conventional oil in reservoirs of low permeability that is accessed through advanced drilling techniques, accounted for 7.3 billion barrels (22% of the U.S. total) of proved reserves of crude oil and lease condensate in 2012.

Texas recorded the largest volumetric increase (3.0 billion barrels) in proved oil reserves among individual states, largely because of development in the Permian and Western Gulf basins, while North Dakota had the second-largest increase (1.1 billion barrels), driven by development of the Bakken and Three Forks formations in the Williston Basin.

EIA's estimates of proved reserves at the end of 2012 are based on an annual survey of domestic oil and gas well operators.

[thackney]

For more information on U.S. crude oil and natural gas proved reserves, see the full U.S. Crude Oil and Natural Gas Proved Reserves report.
http://www.eia.gov/naturalgas/crudeoilreserves/index.cfm

[CMailBag]

OK-—So why is gas $3.63???
Double what it was when King Barry took the throne.

[thackney]

Because oil prices are a relatively high price, proved crude oil reserves go up.

Oil that was not economic to get at $30 per barrel becomes economic at $90 per barrel.

Higher prices means more reserves. More money will be invested in more areas and in more types of production, like expensive shale plays.

And Proved Reserves is not the same a production rate of oil.

[backwoods-engineer]

My question exactly. If crude oil reserves are so high, why is the price of gasoline RISING?

[thackney]

Double what it was when King Barry took the throne.

Measuring from a short-term low point is as meaningless as comparisons from a peak point.

You could just as accurately say prices have been cheaper under Obama since gasoline was over $4 when Bush was president.

We should be honest in our criticism of Obama. He is so bad for the country it is easy to stay with real claims.

[thackney]

Proved reserves are climbing BECAUSE oil prices have remained high.

[ogen hal]

I thought the eco-nuts said we would already have run-out of petroleum? Fools.

[oincobx]

Gas price in Jan-09 was in part a reflection of macroeconomic trends. GDP growth in 4Q08 was at a post WWII low of -8.9%. Payrolls in Jan-09 fell by 798K and were down over 4 million from Jan-08.