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Natural Gas Reserves            
Last Updated: February 2008
Next Update: February 2009


Where does natural gas come from?

The most widely accepted theory about how natural gas was created is that it was formed by the underground decomposition of organic matter (dead plants and animals). If the organic matter is buried deeply enough, much of the carbon and hydrogen is converted to methane, the major component of natural gas. (The chemical formula for methane is CH4--that is, a molecule of methane has one carbon atom and four hydrogen atoms.)

Large volumes of methane can be trapped in the subsurface of the Earth at places where the right geological conditions occurred at the right times. Such a place is called a reservoir.  Reservoirs are made up of porous and permeable rocks that can hold significant amounts of oil and gas within their pore spaces.

What are proved reserves?

Proved reserves of natural gas are estimated quantities that analyses of geological and engineering data have demonstrated to be economically recoverable in future years from known reservoirs. Produced natural gas placed in temporary underground storage is not included in proved reserves.

How much natural gas reserves are in the U.S.?

As of December 31, 2006, estimated proved reserves of dry natural gas in the United States were 211,085 billion cubic feet (Bcf). Dry natural gas is the gas that remains after the economically liquefiable hydrocarbon portion has been removed from the produced gas stream at a natural gas processing plant.

Dry Natural Gas Proved Reserves by Area, 2006
Dry Natural Gas Proved Reserves by Area, 2006
click on image to enlarge

What are undiscovered recoverable resources?

In addition to proved natural gas reserves, there are large volumes of natural gas classified as undiscovered recoverable resources. Those resources are expected to exist because the geologic settings are favorable. Over half of all onshore undiscovered gas resources are located in the Alaska and Gulf Coast regions. Over one-third of all undiscovered gas resources are estimated to be in Federal offshore areas, primarily near Alaska, in the Gulf of Mexico, and along the Atlantic Coast.

More information on this subject can be found in the following EIA publications:
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U.S. Crude Oil, Natural Gas, and Natural Gas Liquids Reserves
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Annual Energy Review
    bullet item Natural Gas - A Fossil Fuel
    bullet item Natural Gas Annual