KEEP Alaska Competitive

America asked for more reserves – and Alaska stood up and produced them.

Oil and gas producers operating in Alaska reported increases in proved reserves in 2024 at a time when low prices triggered a decrease in nationwide proved reserves, according to a recently released U.S. Crude Oil and Natural Gas Proved Reserves, Year-End 2024 report. Alaska’s crude oil and lease condensate proved reserves increased 5%, and natural gas proved reserves increased nearly 7% in 2024, writes Steven Grape.

U.S. proved reserves of crude oil and lease condensate totaled about 46 billion barrels at year-end 2024, a 1% decline from 2023. U.S. proved reserves of natural gas also fell, decreasing 3% to 584 trillion cubic feet (Tcf) at year-end 2024.

Proved reserves are operator estimates of oil and natural gas volumes that geological and engineering data demonstrate with reasonable certainty are recoverable under existing economic and operating conditions.

The price of crude oil and natural gas can affect the reserve estimates, and lower prices in 2024 heavily influenced proved reserves estimates. Average spot prices for both crude oil and natural gas decreased in 2024 for the second year in a row. Average wholesale prices at the domestic benchmarks for West Texas Intermediate crude oil and Henry Hub natural gas fell by 1% and 13%, respectively, from 2023 to 2024.

But exploration and development in Alaska in 2024 increased, supporting upward revisions in reserves there despite the lower prices. Natural gas reserves increased from 97 Tcf in 2023 to 103 Tcf in 2024, and crude oil reserves increased from 3.0 billion barrels in 2023 to 3.1 billion barrels in 2024.

During 2024, ConocoPhillips’ Nuna project became operational and contributed to higher oil proved reserves in Alaska. Planned projects, including new wells at Prudhoe Bay in Alaska’s North Slope and new infrastructure to bring North Slope production to market, such as the Alaska LNG Project, could contribute to increasing proved reserves in the future.

You can read more here: www.eia.gov/naturalgas/crudeoilreserves/index.php.