1. Proved reserves of both oil and natural gas in 2010 rose by the highest amounts ever recorded in the 35 years EIA has been estimating U.S. proved reserves.

2. Technological advances in drilling and higher prices contributed to gains in reserves. The expanding application of horizontal drilling and hydraulic fracturing in shale and other “tight” formations, the same technologies that spurred substantial gains in natural gas proved reserves in recent years, played a key role. Further, rising oil and natural gas prices between 2009 and 2010 likely provided incentives to explore and develop more resources.

3. Oil proved reserves rose 12.8% to 25.2 billion barrels in 2010, marking the second consecutive annual increase and the highest volume since 1991 (see chart above).

4. Natural gas proved reserves (estimated as “wet” natural gas, including natural gas plant liquids) increased by 11.9% in 2010 to a record-high 317.6 trillion cubic feet (Tcf), the twelfth consecutive annual increase, and the first year U.S. proved reserves for natural gas surpassed 300 Tcf (see chart above).

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

John Hanger provides this commentary on the EIA report:

“Most impressively, proved gas reserves in 2010 were up 50% compared to the 2005 number or the 1980 number.  That’s right, our proved gas reserves are 50% higher in 2010 than 30 years ago, despite using a lot of gas during that 30 year period.Indeed, during the last 30 years, the country consumed more than double the amount of our 1980 proved gas reserve number. How could that be? Exploration and production activities are never ending. They keep filling the U.S. natural gas cup that has never emptied and is now overflowing.

So our proved reserves of natural gas have gone up for 12 straight years, increased during 2010 by the highest amount in 35 years, and are 50% higher than in 2005 or 1980.”

MP: The EIA’s significant upward revisions for proved reserves of U.S. oil and gas provide more evidence that America’s job-creating, game-changing, economic-stimulating energy bonanzajust keeps getting better and better all the time.As Walter Russell Mead wrote recently:

“Nature — or perhaps Nature’s God — seems to love mocking pundits. Just when the entire punditocracy, it sometimes seemed, had bought into the “American decline” meme, Europe collapsed and huge energy reserves were discovered underneath the United States. The “special providence” that observers have from time to time discerned in America’s progress through history doesn’t seem to be quite finished with us yet.”

7 Comments on "EIA Revises Estimates Of America’s Energy Bonanza"

dsula on Sun, 5th Aug 2012 6:05 pm 



Yep, exactly as expected, the decline (once it sets in) will be long and gentle.

Chuck W on Sun, 5th Aug 2012 6:22 pm 



Wow, that is great news!!!! Since we use about 8 billion barrels of oil a year, assuming we can extract it from this giant reserve means we have about 3 years of our total usage on our soil. Natural gas is even better, we have a whole 12 1/2 years of supply that we can tap. Now if we figure in depletion rates……………

Alan Cecil on Sun, 5th Aug 2012 6:51 pm 



Nothing like “updating” proven reserves to keep the market happy. Hey, it worked for Saudi Arabia and other Middle Eastern countries back in the 80s…

William D. Condorcet on Sun, 5th Aug 2012 7:13 pm 



I am now being disillusioned. We were told by those who should know to expect sudden collapse from peak oil and peak gas. Now they are saying expect the long slow plateau sloping goodbye instead of the sudden dropoff the cliff.

So which is it? Or will we have to start thinking for ourselves? If that’s it, then what was all those thousands spent for newsletter and books and seminars? I could’ve made better predictions myself and saved myself the money.

DC on Sun, 5th Aug 2012 10:11 pm 



Drive, shop, consume! All is well again….

Keith_McClary on Sun, 5th Aug 2012 10:26 pm 



From the EIA source linked:

“Reserves estimates change from year to year as new discoveries are made, existing fields are more thoroughly appraised, existing reserves are produced, and as PRICES and technologies change.” (my caps)

There is more $100 oil than $10 oil. About 20% more??

BillT on Mon, 6th Aug 2012 1:06 am 



“… estimating U.S. proved reserves….”

In other words, guessing…lol. How can you use the two words ‘proved’ and ‘estimated’ in the same sentence? Doesn’t one cancel the other out? Or is my English understanding wrong?

Anyway, this is more BS from your favorite government propaganda mill the EIA. We are starting to sound like the OPEC countries with our growing reserves in a time of depleting resources…lol.

It doesn’t matter what is in the ground. It is what is profitably recoverable under current conditions that matter. EROEI is the limiting factor, but so is the financial system underpinning the who game. When the world economy collapses, and it will, that is the end of the oil/NG game and most international trade. Wait and see.