ExxonMobil Corp. has done what every energy company hoped to do last year: replace more than 100% of its oil and natural production.
According to the Irving, TX-based major, worldwide proved oil and gas reserves totaled 1.6 billion boe in 2007, or 101% of output. Reserves replacement totaled 132%, excluding the “effects of the expropriation of Venezuelan assets and property sales,” Exxon stated.
“With a 10-year average replacement ratio of 112%, ExxonMobil has continued to replace annual production with new, quality reserves additions,” said CEO Rex Tillerson. He added that the corporation’s performance was a “reflection” of Exxon’s investment strategy, resource base and execution capabilities.”
According to Exxon, key 2007 proved reserve additions followed “new developments and established operations in North America, the Middle East, Europe and West Africa.” The Venezuelan expropriation and asset sales reduced proved reserves by 0.5 billion boe.
Exxon has substantial exploration and production operations in North America on- and offshore, including its growing gas reserves in the Piceance Basin of Colorado.
The proved reserves numbers used Dec. 31, 2007 liquids and natural gas prices, Exxon stated. On this basis, total proved reserves additions in 2007 were 1.2 billion boe, which resulted in a reserves replacement ratio of 76%. Excluding the effects of Venezuela, reserves replacement was 107%, using the year-end pricing basis.
“Given the long-term nature of the industry and the large size of the discrete projects that provide a significant portion of the corporation’s reserves additions, it is appropriate to consider a time horizon longer than a single year,” Exxon said. Excluding the effects of using single-day, year-end pricing, Exxon said its 10-year average reserves replacement is 112%, with liquids replacement at 104%, and gas at 124%.
The reserve additions “comprise a diversity of resource types and have broad geographical representation.” With 22.7 billion bbl of proved oil and gas reserves at year-end 2007, split about evenly between liquids and gas, Exxon said its reserves life at current production rates is more than 14 years. The portion of proved reserves already developed is 62%.
At year-end 2007, Exxon’s total oil and gas resource base stood at 72 billion boe. Last year Exxon added 2.0 billion boe of total resources, with “significant resource additions” from drilling programs in the United States, West Africa and the Asia Pacific region. Overall, the resource base was reduced by 1.8 billion boe, mostly on the effects of the Venezuelan expropriation.
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