U.S. Crude Reserves Hit Highest Levels in nearly 40 Years

This article was written by Oilprice.com -- the leading provider of energy news in the world. Also check out this recent article.

New data from the Energy Information Administration shows that crude reserves in the U.S. hit their highest levels since 1976. The EIA released a report on April 10, entitled "U.S. Crude Oil and Natural Gas Proved Reserves (2012)," which indicated that 2012 marked the fourth year in a row that proven oil reserves increased. Not only that, but 2012 marked the largest increase in oil reserves for a single year – 4.5 billion barrels – since 1970. That is a remarkable feat since 1970 was the year that vast reserves, around 10 billion barrels, were booked in Alaska.

 US Crude Oil and Lease Condensate Proved Reserves

Source: EIA

Why the rapid growth in crude reserves when it appears that oil is becoming increasingly difficult to find and exploit? The EIA says that improved technology is allowing companies to find greater and greater amounts of oil. Moreover, high oil prices and several years of successful production has companies exploring for oil at an elevated rate.

Most of that recent production has come from tight oil in places like the Bakken and the Eagle Ford basin. In fact, tight oil accounted for 22% of proved reserves in 2012. By state, Texas posted the largest increase in proved reserves between 2011 and 2012, adding 3 billion barrels. North Dakota came in second with 1.1 billion barrels. The Gulf of Mexico federal offshore area also added a smaller 137,000 barrels.

Proved reserves do not mean that successful production is a 100% certainty. Proved reserves indicate that the oil can be recoverable in future years with "reasonable certainty" under existing economic and operating conditions. For example, if oil prices dropped significantly, some of the more expensive, harder-to-reach oil would not necessarily be accessible. For now, there is no indication that drilling will slow down in the United States.

America's energy boom is far from over
Record oil and natural gas production is revolutionizing the United States' energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry will pad your investment nest egg. For this reason, the Motley Fool is offering a look at three energy companies using a small IRS "loophole" to help line investor pockets. Learn this strategy, and the energy companies taking advantage, in our special report "The IRS Is Daring You To Make This Energy Investment." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free. 

 


Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 14, 2014, at 1:25 PM, irrigationiswet2 wrote:

    yet we are still paying more at the pump as the price should have fell! Leave it too all the morons here too lrt it happen, "we the people are the morons"

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2914026, ~/Articles/ArticleHandler.aspx, 8/30/2014 10:33:49 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement