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U.S. ENERGY INFORMATION ADMINISTRATION
WASHINGTON DC 20585

FOR IMMEDIATE RELEASE
September 10, 1998

Oil Reserves Up for the First Time in a Decade

U.S. proved reserves of crude oil increased in 1997 for the first time in a decade, according to information released today by the Energy Information Administration (EIA) in a report Advance Summary 1997 U.S. Crude Oil, Natural Gas, and Natural Gas Liquids Reserves. Natural gas reserves also were up in 1997, for the fourth year in a row.

The United States depends on oil and gas for 63 percent of its energy, and 63 percent of this is produced domestically. Increasing oil and gas reserves help alleviate our dependence on foreign oil supplies.

Surprisingly large revisions in some of California's old, heavy oil fields provided nearly half the oil increase. Oil and gas discoveries in the Federal offshore -- several in deep water -- also played a major role in the oil and gas reserves increases.

Other highlights of the data include:

Crude Oil

  • In 1997, crude oil reserve additions exceeded production by 25 percent (Figure 1).

  • New oil field discoveries were more than twice those in 1996 and over 5 times the prior 10-year average. Nearly 80 percent of new field discoveries were in the Gulf of Mexico Federal Offshore, with most of the rest in Alaska.

  • Total discoveries per exploratory oil well were up over 50 percent in 1997, and over six times the rates of the early 1980's when oil prices and drilling peaked (Figure 2).

  • Improved technologies for exploration and deepwater production enhanced industry's ability to discover and develop offshore oil fields, especially in deep water. The Seastar platform used the first subsea injection well in the Gulf of Mexico to make a discovery in deep water economic (Figure 3).

  • Technology improvements that lower costs and increase production rates led to upward revisions in reserves from old, heavy oil fields as steam flooding replaces older, less efficient processes.

  • Indicated additional reserves of crude oil increased to 3,207 million barrels in 1997. These are crude oil volumes that may become economically recoverable from known reservoirs through the application of improved recovery techniques using current technology. The presence of large indicated additional reserves in the Alaskan North Slope, California, Texas, and Louisiana implies that significant upward revisions to crude oil proved reserves may continue in the future. However, in a low price environment such as 1998, large reserve additions from upward revisions in old fields will be more difficult to obtain.

Natural Gas
  • Natural gas reserve additions replaced gas production again in 1997. Declines in gas reserves in the Lower 48 States were offset by increases in Alaskan gas reserves.

  • Total natural gas discoveries in 1997 were the highest in the past decade. Total discoveries per exploratory gas well were up in 1997, and more than four times the rates of the early 1980's.

  • Revisions and adjustments to natural gas reserves in existing fields for 1997 were the lowest in a decade, but total discoveries of natural gas were the highest in a decade.

Advanced information about 1997 oil and natural gas reserves is now available electronically at ftp://ftp.eia.doe.gov/pub/oil_gas/natural_gas/data_publications/advanced_summary_reserves_1997/pdf/adsum.pdf. The full EIA report, U.S. Crude Oil, Natural Gas, and Natural Gas Liquids Reserves 1997, will be published in October, 1998. Copies will be available from the U.S. Government Printing Office 202/512-1800 or through EIA's National Energy Information Center (NEIC), Room 1F-048, Forrestal Building, 1000 Independence Avenue, SW, Washington DC 20585, 202/586-8800. The figures referenced above may be viewed along with this press release on EIA's Web Site or can be requested from the EIA Press Contact.

The report described in this press release was prepared by the Energy Information Administration, the independent statistical and analytical agency within the U.S. Department of Energy.  The information contained in the report and the press release should be attributed to the Energy Information Administration and should not be construed as advocating or reflecting any policy position of the Department of Energy or any other organization.

EIA Program Contact: John Wood, 214/720-6150
EIA Press Contact: National Energy Information Center, 202/586-8800, infoctr@eia.doe.gov

EIA-98-22

Contact:

National Energy Information Center
Infoctr@eia.doe.gov
Phone:(202) 586-8800
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