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ExxonMobil Reserves Replacement in 2008 Was 103% of Production

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%.

Comments

Treehugger

well, there is always to present negative results as postive.

1st : You notice that they maintain the level of their reserve by replacing high quality crude by the worse quality of crude (which is not oil by the way) tar sand are not oil they only become crude after you have added hydrogen.

2nd : big oils companies (Shell, BP, Chevron , Exxon, Total, Conoco) only control 12% of the world oil reserves, they don't have the cards in hand any more

3rd : if the biggest oil company can only maintain its reserve by replacing high quality oil by the lowest one (which they can not extract at the current price level)
the follow my glance :

PEAK OIL

Mannstein

I care a hoot whether the gasoline or diesel originates from light sweet crude oil, oil sands, oil shales, or coal as long as the price is right at the pump.

Treehugger

Mannstein

Then you missed the point, the gazoline made from sands, shale or coal will only be available at the pump if the price is high enough. With current price forget it...

price has to rise first than sand, coal and eventually shale will follow but let's hope that we find something else because these sands, shale, coal are really nasty stuff and you should care more about this later point

Herm

and eventually gasoline will be produced from coal and sewage economically.. chemical technology marches on and hopefully battery tech will advance faster.

Treehugger

Herm

Are you so sure ? last week the pentagon dropped a big project of CTL, reason : not economically viable too much environmental impact, so certainly not the silver bullet that you think

ToppaTom

This is not so much presenting negative results as postive as picking your goals.

Like orders for 10,000 2010 Honda Insights exceeding goals (that's only 1% of the Japanese market).
If the GM Volt starts out with orders equiv to 1% of the US market is it a winner?

And the reserves are oil (from Tar sand) NOT Tar.

"Exxon may have a winner here."

Treehugger

Top

I fact that they call "oil reserves" the oil they can make from Tar Sands doesn't make it a high quality grade my friend, sorry for you. You can't compare a oil that's return an EROI of 10 to 20 with an oil that return 3 to 6, but that's what they are doing

arnold

So they forgot to mention "at twice the price"

I'm wondering if I shoudhave invested in that new bowser on Pluto.

Bryan

Treehugger-

1. Big oil hasn't controlled a significant portion of oil reserves in a very very long time (ever heard of this little group called OPEC?)

2. You don't strike me as someone who believes in free market principles. Oil gets expensive -> A profit motivated entrepreneur invents *** -> makes *** cheaper -> starts selling it -> becomes billionaire. Does that sound familliar? Like every other market in our economy... Why would oil be any different? Universities and private organizations are spending a lot of money on energy R&D.

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