Study: US Oil, Gas Companies Add To Reserves

An improved price environment combined with innovation, efficiency savviness and cost reductions combined to help 50 of the top U.S. oil and gas companies increase revenues and production while significantly growing oil and gas reserves in 2017.

This is according to EY’s latest U.S. oil and gas reserves and production study, which was released July 13. Both oil and gas reserves reached their highest levels since 2014 when the market downturn sent oil and gas prices tumbling, forcing companies to operate more efficiently to make money.

Of the 50 study companies, 41 reported oil production replacement rates of more than 100%. That’s up from only 29 in 2016. WildHorse Resource Development Corp. and Southwestern Energy Co. had three-year (2015-2017) oil production replacement rates of 2,989% and 1,124%, respectively, according to the study.

“What we’re seeing is even in the face of adversity and the challenges with pricing, the oil and gas companies in our study group have really focused on being efficient, being economical—having downed costs per barrel—and focusing on expanding their portfolio,” Herb Listen, Americas oil and gas assurances leader and partner for EY, said during a media call. “It’s showing in the growth of the reserves.”