Domestic Reserves Increase | Russell T. Rudy Energy LLC
“Rigzone” cites data recently released by the U. S. Energy Information Administration (EIA) indicating that proved oil and natural gas reserves reached record levels in 2014 as a result of the shale revolution. The drilling boom of the last decade, driven by high prices, horizontal drilling, and advances in hydraulic fracturing has transformed the domestic energy landscape.
Proved reserves are those which can be extracted using current technology in today’s economic environment. Natural gas reserves increased 10% to a record high of 388.8 trillion cubic feet (tcf). Concurrently, oil reserves rose 9% to 39.9 billion barrels, the highest level since 1972.
The 2014 results mark the sixth year in a row that reserves have increased. Unfortunately, increased reserves and production have produced an energy glut which has devastated oil prices and depressed those for gas.
The Marcellus shale, located primarily in Pennsylvania, produces approximately 20% of the nation’s natural gas and also contributed 10 tcf of the increase in reserves. The Eagle Ford shale and the Permian Basin in Texas added 2.05 billion barrels of oil reserves. The Bakken shale, primarily in North Dakota, also contributed 362 million barrels.
Domestic oil and gas production also increased in 2014. Oil output rose 17% to 8.7 million barrels per day and gas 6% to 66 billion cubic feet per day.
To read the article in its entirety, please go to http://www.rigzone.com/news/oil_gas/a/141760/EIA .
