Robert Pore's Ag Blog

Reserves additions replaced 164 percent of 2005 dry natural gas production
as U.S. natural gas proved reserves increased for the seventh year in a row
according to estimates released today by the Energy Information
Administration. The 6 percent increase in 2005 was the largest annual
increase in natural gas proved reserves since 1970.

Reserves additions of crude oil replaced 122 percent of the 2005 production.
Crude oil proved reserves went up in 2005 for the first time in 3 years,
increasing by 2 percent.

Two of the four largest U.S. oil-producing areas, Texas and California, reported increases in proved crude oil reserves in 2005 while the Gulf of Mexico Federal Offshore and Alaska reported declines.

Several significant deepwater discoveries that have been made in recent years in the Gulf are not yet booked as proved reserves. Texas reported the largest
increase in crude oil reserves, a majority of which occurred in the Permian
Basin of west Texas. Wyoming and Montana had the second and third largest
increases.

U.S. crude oil production declined in 2005 due to lower production in the
Guf of Mexico and Alaska. The Rocky Mountain States, however, generally
increased their crude oil production in 2005 with Montana showing the largest
increase at 36 percent owing to development of the Bakken Formation in the
Williston Basin.

Gas reserves additions onshore in the lower 48 States were large enough to
overcome a 10 percent drop in gas reserves reported for the Gulf of Mexico
Federal Offshore. The majority of natural gas reserves additions in 2005 were
extensions of existing gas fields rather than new field or reservoir discoveries.

Leading the nation in 2005 natural gas reserves additions were Texas, with
notable reserves increases in the Newark East Field (Barnett Shale), and
Colorado, with notable reserves increases in the Ignacio-Blanco Field (tight sands and coalbeds).

Total U.S. natural gas production declined 4 percent in 2005 due to the effect
of Hurricanes Katrina and Rita which cut natural gas production in the Gulf of
Mexico (which had accounted for 20 percent of U.S. dry gas production in 2004)
by 80 percent at the peak of hurricane-related curtailments. Gulf of Mexico
production slowly returned and is expected to reach roughly 90 percent of 2005's
pre-hurricane production rate in September 2006. Gas production from the Gulf
had been declining at about 10 percent per year prior to the hurricanes.


"Advance Summary: U.S. Crude Oil, Natural Gas, and Natural Gas Liquids Reserves
2005 Annual Report" is available on the EIA Internet site at:
http://www.eia.doe.gov/oil_gas/fwd/adsum.html