Exxon Mobil Corporation (NYSE:XOM) announced today it replaced 115 percent of its 2012 production by adding proved oil and gas reserves totaling 1.8 billion oil-equivalent barrels, including a 174 percent replacement ratio for crude oil and other liquids.
“Replacing production with new sources of oil and gas enables ExxonMobil to develop new supplies of energy that will be critical to support future demand, economic growth and improved living standards.”
“ExxonMobil’s industry-leading record of long-term reserves replacement is a result of our strategic focus on quality resource capture, disciplined investment and excellence in project execution,” said Rex W. Tillerson, chairman and chief executive officer. “Replacing production with new sources of oil and gas enables ExxonMobil to develop new supplies of energy that will be critical to support future demand, economic growth and improved living standards.”
At year-end 2012, ExxonMobil's proved reserves totaled 25.2 billion oil-equivalent barrels, which was made up of 51 percent liquids and 49 percent natural gas. At year-end 2011, ExxonMobil's proved reserves base was 24.9 billion oil-equivalent barrels, made up of 49 percent liquids and 51 percent gas.
Liquid additions during 2012 totaled 1.4 billion barrels or 174 percent of production and natural gas additions totaled over 400 million oil-equivalent barrels for a 56 percent replacement ratio. Excluding the impact of asset sales, reserves additions during 2012 replaced 124 percent of production.
It was the 19th consecutive year that ExxonMobil replaced more than 100 percent of its production. The average replacement ratio over the past 10 years -- considered a better indicator of reserves performance due to the long-term nature of the industry -- was 121 percent. Liquids replacement over the period averaged 102 percent and natural gas replacement averaged 145 percent. The reserves additions made over the 10-year period comprise a diverse range of resource types and have broad geographical representation. ExxonMobil’s reserves life at current production rates is 16 years.
Reserve additions in 2012 from the liquids-rich Woodford and Bakken plays in the United States totaled almost 750 million oil equivalent barrels. Proved reserves additions in Canada, including performance revisions and the Nabiye expansion project at Cold Lake, Alberta, and the Hebron project offshore Newfoundland and Labrador, added more than 600 million oil-equivalent barrels. Other additions to proved reserves were made in Australia, Angola and Kazakhstan.
Reserves additions in 2012 reflect new developments with significant funding commitments as well as revisions and extensions of existing fields resulting from drilling, studies and analysis of reservoir performance. The annual reporting of proved reserves is the product of the corporation’s long-standing, rigorous process that ensures consistency and management accountability in all reserves bookings.
Source: Business Wire
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