Ziff Energy has released a report which provides an analysis of the 2011 U.S. and Canadian gas reserve replacement rates, gas reserves, and focuses on reserves booking in today’s low-price environment.
Ziff Energy’s analysis indicates U.S. gas reserve replacement drops from 2010 although continues to be strong – over 150% of production, as a result of reduced discoveries and extensions, and lower capital spending in exploration.
In Canada, the gas replacement rate stays over 100% for the second year, after many consecutive years being below full replacement, as significant discoveries and extensions offset negative economic revisions. While drilling activity was similar to 2010, the efficiency of wells has improved significantly, particularly in tight gas plays.
Figure 1 compares U.S. and Canadian reserves additions (Discoveries & Extensions, Improved Recovery, Technical and Economical revisions) from 2007-2011 in a downward changing price environment.