Additions to ExxonMobil’s proved reserves in 2008 totaled 1.5 billion oil-equivalent barrels—the bulk of it from Canadian oil sands—replacing 103% of production. Excluding the impact of asset sales, reserves additions replaced 110% of production. These additions assume the long-term pricing basis that the corporation uses to make its investment decisions, rather than single-day, year-end pricing.
The corporation said that its reserve additions in 2008 reflect both new developments with significant funding commitments and revisions and extensions of existing fields resulting from drilling, studies and analysis of reservoir performance.
Reserves additions from the Kearl Phase 1 oil sands project in Canada totaled 1.1 billion oil-equivalent barrels. Proved additions were also made in a diverse range of countries including the United States, Norway, Nigeria, Angola and Australia. Asset sales in 2008 reduced proved reserves by 0.1 billion oil-equivalent barrels.
Utilizing 31 December 2008 liquids and natural gas prices, proved reserves replacement was 2.0 billion oil-equivalent barrels in 2008, replacing 136% of production, including the effect of asset sales. However, prices from a single date are not considered when long-term investment decisions are made by the corporation, and annual variations in reserves based on such year-end prices are not aligned with how the business is actually managed.
ExxonMobil said that 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 make it appropriate to consider a time horizon longer than a single year.
Excluding single day, year-end pricing effects, the corporation’s 10-year average reserves replacement ratio is 110%, with liquids replacement at 103% and gas at 119%. For the last 15 consecutive years, ExxonMobil’s reserves additions have more than replaced production.
At the end of 2008 ExxonMobil’s proved reserves base increased to 22.8 billion oil-equivalent barrels, split approximately evenly between liquids and gas. ExxonMobil’s reserves life at current production rates is 15.3 years and the portion of proved reserves already developed is 62%.