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Petroleum

US Oil and Natural Gas Discoveries Rise, Reserves Fall

Strategic Insights

— 1 min read

US oil and natural gas discoveries rose significantly in 1993, with crude oil discoveries reaching their highest levels in 23 years, according to the Energy Information Administration (EIA). However, despite the increase in discoveries, the country's total domestic oil and gas reserves continued to decline. Oil reserves fell for the sixth consecutive year, while gas reserves declined for the third consecutive year. The EIA reported that new crude oil reserves were found in two areas: Texas and federal waters in the Gulf of Mexico, which accounted for three-fourths of the new volume.

Key Takeaways:

  • US oil and natural gas discoveries rose substantially in 1993, with crude oil discoveries reaching their highest levels in 23 years.
  • The EIA reported that oil reserves fell for the sixth consecutive year, from 22.965 billion bbl in 1992 to 22.957 billion bbl in 1993.
  • Crude oil prices averaged only $14.20/bbl in 1993, the lowest annual inflation-adjusted average since 1973.
  • Wellhead prices averaged just $11.38/bbl in December 1993, with Alaska North Slope crude at $7.
  • Despite the rise in gas discoveries, gas reserves declined for the third consecutive year, by 2.8 Tcf, or 1.6%, to 162.415 Tcf.
  • Improved deep-water technology enhanced the ability to find and develop offshore fields, leading to the discovery of 785 million bbl of new crude oil reserves.
  • Natural gas liquids (NGLs) reserves declined 229 million bbl, or 3%, to 7.222 billion bbl, and total crude and NGLs reserves fell 1.017 billion bbl, or 3.3%, to 30.179 billion bbl.

Sources:

  • Energy Information Administration (EIA)

Statistics:

  • 22.957 billion bbl: US oil reserves in 1993
  • 22.965 billion bbl: US oil reserves in 1992
  • 22.397 billion bbl: US oil reserves in 1994 (projected)
  • 785 million bbl: New crude oil reserves discovered in 1993
  • 2.8 Tcf: Decrease in gas reserves in 1993
  • 162.415 Tcf: Total gas reserves in 1993
  • 7.222 billion bbl: NGLs reserves in 1993
  • 30.179 billion bbl: Total crude and NGLs reserves in 1993
  • $14.20/bbl: Average crude oil price in 1993
  • $11.38/bbl: Average wellhead price in December 1993
  • 8,590: Number of gas wells completed in 1993
  • 8,170: Number of oil wells completed in 1993
  • 24%: Percentage of NGLs in the country's liquids reserves
  • 1.017 billion bbl: Decrease in total crude and NGLs reserves in 1993

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