Natural Gas

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The average spot price of both crude oil and natural gas in the United States decreased in 2023 from recent highs in 2022. Proved reserves of crude oil and natural gas decreased 4% and 13%, respectively, compared with 2022.

Oil highlights 2023

• U.S. crude oil and lease condensate proved reserves decreased 3.9%, from 48.3 billion barrels to 46.4 billion barrels, year over year from 2022.
• U.S. crude oil and lease condensate production increased 7.8% year over year.
• North Dakota crude oil and lease condensate reserves decreased 12.3% from 2022, the largest annual net decline (611 million barrels) reported among all states. The second-largest net decline of oil reserves occurred in Alaska (11.4% or 384 million barrels).
• The 12-month, first-day-of-the-month average spot price for West Texas Intermediate (WTI) crude oil at Cushing, Oklahoma, decreased by 17.4% year over year, from $94.54 per barrel (bbl) to $78.05/bbl.
• New Mexico crude oil and lease condensate proved reserves increased 6.1%, the largest net increase (380 million barrels) in 2023.

Natural gas highlights 2023

• Proved reserves of U.S. natural gas decreased 12.6% year over year, from 691.0 trillion cubic feet (Tcf) to 603.6 Tcf, the first annual decrease in U.S. natural gas reserves since 2020.
• U.S. natural gas production increased 3.4%.
• Alaska natural gas proved reserves decreased 22.7%, the largest annual net decline (28.5 Tcf) among all states in 2023.
• Texas had the second-largest net decline in proved reserves of natural gas (12.6% or 21.4 Tcf).
• The 12-month, first-day-of-the-month average spot price for natural gas at the Louisiana Henry Hub decreased by 58.7% year over year, from $6.29 per million British thermal units (MMBtu) to $2.60/MMBtu, which was the lowest annual average price since 2020.
• Montana reported the largest annual net increase in proved reserves of natural gas (11.2% or 70 billion cubic feet).

Proved reserves are estimated volumes of hydrocarbon resources that analysis of geologic and engineering data demonstrates with reasonable certainty are recoverable under existing economic and operating conditions. Reserves estimates change from year to year because of:

• Price and cost changes
• New discoveries
• Thorough appraisals of existing fields
• Existing reserves production
• New and improved techniques and technologies

To prepare this report, we collect independently developed estimates of proved reserves with Form EIA-23L, Annual Report of Domestic Oil and Gas Proved Reserves, from a sample of U.S. operators of oil and natural gas fields. We use this sample to further estimate the portion of proved reserves from operators who do not report. This year, we received responses from 422 of 458 sampled operators, which provided coverage of about 95% of proved reserves of oil and 97% of proved reserves of natural gas at the national level. We develop estimates for reserves located in the United States, each state individually, and some state subdivisions. States and regions with subdivisions are:

• California
• Louisiana
• New Mexico
• Texas
• Federal Offshore Gulf of America

Contact: Petroleum and Other Liquids Data, eiainfopetroleum@eia.gov