Report Highlights Increased 2014 Reserves and Production
A new report from Ernst & Young Global Limited recently looked at exploration and production results in the United States from 2010 through 2014 for the 50 largest oil and gas companies. The report was based on the 2014 end-of-year oil and gas reserves estimates, and overall, found that despite low commodity prices, companies continue to expand and grow U.S. oil and gas reserves.
From the report:
- Total capital expenditures rose 16% in 2014 to $200.2 billion as all categories of spending increased.
- End-of-year oil reserves were 27.2 billion barrels in 2014, representing 8% growth from 2013 and over 50% growth from 2010. Oil production rose 18% in 2014 and the oil production replacement rate was 201%, excluding purchases and sales.
- End-of-year gas reserves grew 7% to 190.8 Tcf in 2014 and the gas production replacement rate was 218%, excluding purchases and sales.
Thanks to advances in hydraulic fracturing technology, U.S. operators saw huge gains in oil production over the five year study period, with production levels reaching 2.1 billion barrels in 2014 compared to the 1.8 billion barrels in 2013. According to the report the largest production increases came from:
- EOG Resources – 31.1 million barrels
- Devon Energy – 29.0 million barrels
- Anadarko Petroleum – 27.0 million barrels (p. 6)
Natural gas also saw an increase in production from 13.3 trillion cubic feet (Tcf) in 2013 to 13.5 Tcf by the end of 2014. According to the report each of these companies had production gains over 100 billion cubic feet (Bcf) in 2014:
- Antero Resources
- Cabot Oil & Gas
- Southwestern Energy (p. 7)
To put this in perspective, “80 bcf per day of natural gas could power at least 400 million homes.”
These production gains in 2014 allowed the United States to remain the world’s top oil and natural gas producer, beating out Russia and Saudi Arabia, respectively. In fact, Energy In Depth recently highlighted rankings from the American Petroleum Institute that showed how individual states were outperforming whole countries in terms of oil and natural gas output.
Thanks to advancements in hydraulic fracturing technology over the last decade, oil and gas companies have been able to expand their reserves and grow production year-over-year. Because of this, the United States has become less dependent on foreign natural gas, with imports falling to their lowest levels in 28 years. As technology and innovations continue to fuel this industry, domestic oil and gas production – and the vast economic benefits it’s brought to communities across the country – will continue for decades to come.