Yahoo Finance 15 States with the Largest Oil Reserves in the US
In this article, we are going to discuss the 15 states with the largest oil reserves in the US. You can skip our detailed analysis of the economic contributions of the American oil and gas sector, the strategic petroleum reserve of the United States, and the use of artificial intelligence in the oil and gas industry, and go directly to the 5 States with the Largest Oil Reserves in the US.
According to the U.S. Energy Information Administration, Proved Reserves are ‘estimated volumes of hydrocarbon resources that the analysis of geologic and engineering data demonstrates with reasonable certainty, and are recoverable under existing economic and operating conditions’. America’s total proved crude oil reserves hit a low of around 19 billion barrels in 2008, but have spiked since then mainly due to new discoveries, thorough appraisal of existing fields, and the development of new extraction techniques etc. At 55.251 billion barrels, the United States has some of the Largest Oil Reserves in the World, and thanks to its recent shale oil boom, the U.S. is also placed among the Countries with the Most Untapped Oil Reserves in the World.
Economic Contributions of the American Oil and Gas Sector:
America is the Biggest Oil Producing Country in the World, accounting for 14.7% of the overall global crude production in 2022. Having the luxury of local production means that oil and gas are readily accessible and affordable for mass distribution. While this may not seem like it directly impacts the average oil and gas consumer, the truth is that it does in a massive way. Every year, the indigenous production of oil and gas helps save American consumers an estimated $203 billion, or $2,500 for each family of four. Moreover, the oil and gas industry also supports over 12 million American jobs, provides billions of dollars in tax revenue, and ensures energy security.
Strategic Petroleum Reserve of the United States:
Strategic petroleum reserves, or SPRs, are stockpiles of crude oil maintained by countries for release in the event of a supply disruption. The U.S. government also has a massive strategic oil stock, with an authorized storage capacity of 714 million barrels, stored in four underground salt caverns along the Texas and Louisiana Gulf Coasts. The sheer capacity of this federally-owned SPR makes it a significant deterrent to oil import cutoffs and a key tool in foreign policy. The reserve currently holds 364.9 million barrels of oil, over 60% of which is sour crude, or relatively high sulfur oil which many of the country’s refineries are engineered to process.
Artificial Intelligence in the Oil and Gas Industry:
Major players in the oil and gas industry are looking into big data analytics and AI to enhance decision making abilities and thus profits. AI will allow these companies to make better drilling and operational decisions, assist them in overcoming their challenges, and position them for long-term success.
Shell plc (NYSE:SHEL) has deployed AI across its entire oil and gas supply chain, with over 160 active AI projects. It uses reinforcement learning in its exploration and drilling programme to reduce gas extraction costs. From machine learning to computer vision, deep learning to virtual assistants and autonomous vehicles to robotics, Shell plc (NYSE:SHEL) has been focused on a range of technologies that have supported advances in AI. In fact, the oil giant also offers an AI Residency Program, which gives data scientists and AI engineers experience with several AI projects across the company.
Shell plc (NYSE:SHEL) ranks among the Best Energy Stocks to Buy Now.
The Exxon Mobil Corporation (NYSE:XOM) is another major player that has prominently adopted a digital mindset in the oil and gas sector. The Texas-based company has collaborated with IBM’s Data Science and AI Elite Team and seismic experts to use AI to interpret and integrate data from siloed systems into one repository, which is hosted on a multi-cloud environment. The Exxon Mobil Corporation (NYSE:XOM) is also enhancing its customers’ experience at the pump by offering mobile apps for payment options, customer loyalty programs, and comprehensive car maintenance experiences.
The Exxon Mobil Corporation (NYSE:XOM) is included among the Best Cheap Dividend Stocks to Buy Right Now.
With that said, here are the U.S. States with the Largest Proved Oil Reserves.
A vertical offshore oil rig in the middle of a calm sea, symbolizing the company's oil and gas exploration.
Methodology:
To collect data for this article, we have referred to the U.S. Energy Information Administration, looking for the States with the Biggest Oil Reserves. The following states have been ranked by their proved oil reserves in 2021.
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15. Mississippi
Total Proved Oil Reserves in 2021: 122 million barrels
The Magnolia State produces about 0.3% of the country's crude oil and holds about 0.3% of the total proved oil reserves in the U.S. It was announced in July last year that Denbury Inc. – the largest oil producer in Mississippi – has been acquired by ExxonMobil Corp for $4.9 billion. Denbury is a prime player in the emerging carbon capture and geologic storage industry and its acquisition is meant to accelerate the oil giant’s energy transition business with an established carbon dioxide sequestration operation, essentially seeking to make carbon capture a more profitable endeavor.
14. West Virginia
Total Proved Oil Reserves in 2021: 206 million barrels
Although it is small in size compared to other states, West Virginia is the fifth-largest energy producer in the United States. Most of the Mountain State is part of the Appalachian Plateau region, where the major part of its natural gas, coal, and crude oil reserves are found.
According to the American Petroleum Institute, the oil and gas industry supported more than 73,000 jobs and contributed nearly $13 billion to West Virginia’s economy in 2021.
13. Kansas
Total Proved Oil Reserves in 2021: 304 million barrels
Kansas holds about 1% of the U.S. proved crude oil reserves and accounts for almost 1% of the country’s oil production. The oil and gas industry is a major contributor to the economy of Kansas and, over the past decade, has supported 118,000 jobs and $3 billion in family income, besides contributing $1.4 billion in state and local tax revenue.
12. Montana
Total Proved Oil Reserves in 2021: 324 million barrels
Most of Montana's crude oil production comes from the Bakken Formation in the northeastern corner of the state, however, the majority of the oil produced is exported to other states. The Treasure State also has four refineries with a combined crude oil processing capacity of about 218,000 barrels per calendar day.
Montana’s proved oil reserves have increased by almost 11% over the last 5 years, putting it among the U.S. States with the Largest Petroleum Reserves.
11. Ohio
Total Proved Oil Reserves in 2021: 326 million barrels
Ohio is counted among the top oil producing states, with the Buckeye State also having given birth to companies like Standard Oil and Marathon Oil in the 19th century. With over $100 billion invested in Ohio’s oil and gas sector over the last decade, the number of oil and gas producing wells in the state now tops 3,100.
10. Louisiana
Total Proved Oil Reserves in 2021: 414 million barrels
Louisiana has abundant crude oil reserves both onshore and offshore, buried beneath the thick sediments of the Mississippi Delta. It is also the primary point of entry for the huge reserves located in the Gulf of Mexico.
Louisiana produced around 36.5 million barrels per day of oil in 2022 and the state’s 15 oil refineries account for nearly one-sixth of the nation's total refining capacity, capable of processing about 2.9 million barrels of crude oil per day.
Louisiana ranks 10th among the Top Oil and Gas Producing States in America.
9. Utah
Total Proved Oil Reserves in 2021: 550 million barrels
Oil fields in Utah have produced over 1.36 billion barrels since production began in the 1940s. Much of this black gold is extracted from the Uintah Basin in the eastern part of the state. Employment in Utah’s oil and gas industry rose significantly between 2021 and 2022, adding more than a thousand workers to bring the total to 7,449.
8. Wyoming
Total Proved Oil Reserves in 2021: 1.083 billion barrels
Wyoming holds about 2.4% of America’s crude oil reserves and the state had 27,951 producing wells in 2022 (the highest figures ever), including 10,120 producing oil wells and 17,800 producing gas wells. The oil and gas industry in the Equality State has provided nearly $10 billion for education, infrastructure, and government operations etc. over the last six years, in addition to supporting around 60,000 jobs.
Wyoming is included among the U.S. States with the Biggest Oil Reserves in 2024.
7. Colorado
Total Proved Oil Reserves in 2021: 1.488 billion barrels
Colorado has witnessed a 16% increase in its proved oil reserves in the last 5 years and most of the state’s oil comes from the Niobrara Shale formation located in the Denver-Julesburg Basin in northeastern Colorado.
It was announced last year that the Denver-based PDC Energy has been acquired by the Chevron Corporation, creating the largest oil and gas company in the Centennial State. The new company will now hold 600,000 acres statewide and produce 400,000 barrels of oil per day on average, making it one of Chevron’s top five production units in the world.
6. California
Total Proved Oil Reserves in 2021: 1.717 billion barrels
Although California ranks 6th in our list of the U.S. States with the Largest Oil Deposits, much of this oil is dirty, dangerous, and very carbon-intensive to extract and refine. And so the Golden State is aiming to be the biggest oil producer in the world and the first state in America to plan a managed decline of the sector. Governor Gavin Newsom has ordered a plan to phase out oil and gas production in California by 2045.
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Disclosure: None. 15 States with the Largest Oil Reserves in the US is originally published on Insider Monkey.
