Replaced

BP plc replaced 112% of its annual production in 2007, building its proved reserves of oil and gas to 17.8 billion boe, the company reported Wednesday. It also added about 2.4 billion new barrels to its nonproved resource base, which now stands at 42.1 billion boe.

Chevron Corp. replaced only 11% of its proven oil and natural gas reserves in 2007 and total reserves fell 7% from 2006, partly because of “the effect of a conversion of operating service agreements” in Venezuela, the company said last week.

Chevron Corp. replaced only 11% of its proven oil and natural gas reserves in 2007 and total reserves fell 7% from 2006. Part of the decline was due to “the effect of a conversion of operating service agreements” in Venezuela, the company said Thursday.

BP plc replaced 112% of its annual production in 2007, building its proved reserves of oil and gas to 17.8 billion boe, the company reported Wednesday. It also added about 2.4 billion new barrels to its nonproved resource base, which now stands at 42.1 billion boe.

The bet made by Pioneer Natural Resources Co. to focus on U.S. exploration appears to paid off — proved reserves grew by 128 MMboe last year, and the producer replaced 357% of production primarily in its core onshore areas and through several key U.S. acquisitions.

A prior-day futures decline of 15.9 cents and a general lack of heating load that so far is being replaced with only a moderate amount of cooling load resulted in falling cash prices at nearly all points Tuesday.

Williams, whose exploration assets are weighted 99% to natural gas, last year saw its U.S. proved reserves grow by 9.5%, and it replaced 216% of its wellhead production of 276 Bcfe. In the final three months of 2006, domestic output jumped 28% to 826 MMcf/d.

ExxonMobil Corp. said it replaced 112% of production including property sales and 129% excluding property sales in 2005.

The good news for growing U.S. natural gas demand is that declining traditional reserves can be replaced by a combination of Rocky Mountain unconventional supplies and increased imports of liquefied natural gas (LNG), but the bad news is the fact that permitting for new supply projects in these two sectors may be difficult to obtain, a panel of energy lawyers told an industry conference Thursday in Santa Fe, NM. Ultimately, Uncle Sam or neighboring Mexico could hold the keys to unlocking these supplies.