Friday, August 3, 2012

Proved Gas Reserves Up 50% From 2005 to 2010: Where's The Gas Ponzi Scheme?

In a continuing effort to drive a stake through the crazy conspiracy popularized by the NYT that the natural gas boom is a Ponzi scheme, I direct your attention to hot off the presses EIA data for what it calls "proved gas reserves," the most conservative or smallest category of reserve classifications.

In 2010, the most recent year for which data is available, EIA's proved gas reserves jumped the most it has in 35 years, more than 11%.  While the 2010 rise was especially big, it was not a fluke. EIA's estimates of proved gas reserves have increased for 12 straight years.

Most impressively, proved gas reserves in 2010 were up 50% compared to the 2005 number or the 1980 number.  That's right our proved gas reserves are 50% higher in 2010 than 30 years ago, despite using a lot of gas during that 30 year period.

Indeed, during the last 30 years, the country consumed more than double the amount of our 1980 proved gas reserve number. How could that be?

Exploration and production activities are never ending. They keep filling the US natural gas cup that has never emptied and is now overflowing.

So proved reserves have gone up for 12 straight years, increased during 2010 by the highest amount in 35 years, and are 50% higher than in 2005 or 1980.  Other than in the conspiratorial, demagogic mind, just exactly where's the notorious gas Ponzi Scheme featured by the NYT?

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