U.S. Energy Information Administration - EIA - Independent Statistics and Analysis

Press Room

U.S. ENERGY INFORMATION ADMINISTRATION
WASHINGTON DC 20585

FOR IMMEDIATE RELEASE
December 14, 2016

U.S. oil and natural gas proved reserves decrease in 2015 due to lower prices

U.S. crude oil proved reserves declined 4.7 billion barrels (11.8%) from their year-end 2014 level to 35.2 billion barrels at year-end 2015, according to U.S. Crude Oil and Natural Gas Proved Reserves, Year-end 2015, released today by the U.S. Energy Information Administration (EIA). U.S. natural gas proved reserves decreased 64.5 trillion cubic feet (Tcf), a 16.6% decline, reducing the U.S. total to 324.3 Tcf at year-end 2015.

The significant reduction in the average price of both oil and natural gas between 2014 and 2015 resulted in more challenging economic and operating conditions, an important factor in determining proved reserves. These price developments, reflected in a nearly 50% decline in average West Texas Intermediate crude oil spot prices (from $95 per barrel in 2014 to $50 per barrel in 2015) and a more than 40% decline in the natural gas spot price at the Louisiana Henry Hub (from $4.55 per million Btu in 2014 to $2.62 per million Btu in 2015) led to reduced drilling activity and downward revisions in proved reserves across a broad range of U.S. producers in 2015.

Changes in proved reserves between year-end 2014 and year-end 2015 are summarized in the following table

	Crude oil and lease condensate billion barrels	Natural gas trillion cubic feet
2014 U.S. proved reserves	39.9	388.8
Net change to U.S. proved reserves	-4.7	-64.5
2015 U.S. proved reserves	35.2	324.3
Percentage change	-11.8%	-16.6%

New Mexico had the largest net increase in proved reserves of crude oil and lease condensate of all states in 2015, mostly from development of the Wolfcamp shale and Bone Spring plays in southeastern New Mexico's portion of the Delaware Basin.

Crude oil and lease condensate extensions to existing fields were highest in Texas and North Dakota in 2015. However, as a result of downward revisions, both states experienced a net reduction in proved reserves.

In 2015, Ohio added more than 5 Tcf of natural gas proved reserves (in the Utica/Point Pleasant Shale play), and surpassed Arkansas and the Gulf of Mexico to become the ninth-largest natural gas reserves state.

Proved reserves are those volumes of oil and natural gas that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. U.S. Crude Oil and Natural Gas Proved Reserves, Year-end 2015 is available at: http://www.eia.gov/naturalgas/crudeoilreserves/.

The product described in this press release was prepared by the U.S. Energy Information Administration (EIA), the statistical and analytical agency within the U.S. Department of Energy. By law, EIA's data, analysis, and forecasts are independent of approval by any other officer or employee of the United States Government. The views in the product and press release therefore should not be construed as representing those of the Department of Energy or other federal agencies.

EIA Program Contact: Steven G. Grape, 202-586-1868, steven.grape@eia.gov

EIA Press Contact: Jonathan Cogan, 202-586-8719, jonathan.cogan@eia.gov

EIA-2016-08