Exxon Mobil Corporation has announced that it replaced 104% of its 2014 production by adding proved oil and gas reserves totalling 1.5 boe, including a 162% replacement ratio for crude oil and other liquids.
“ExxonMobil’s diverse global portfolio of attractive opportunities puts us in a unique position to execute our strategy to identify, evaluate and develop new energy supplies,” said Rex W. Tillerson, chairman and chief executive officer. “Our ability to achieve an industry-leading record of long-term reserves replacement is made possible by the size and diversity of ExxonMobil’s resource base along with its project execution and technical capabilities.”
At year-end 2014, ExxonMobil's proved reserves totalled 25.3 boe, which was made up of 54% liquids, up from 53% in 2013, and 46% natural gas.
Liquid additions during 2014 totalled more than 1.2 billion bbls, or 162% of production, and natural gas additions totalled approximately 300 million boe for a 42% replacement ratio. Excluding the impact of asset sales, reserves additions during 2014 replaced 111% of production.
It was the 21st consecutive year that ExxonMobil replaced more than 100% 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 123%. Liquids replacement over the period averaged 12 % and natural gas replacement averaged 121%. 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 17 years.
Reserve additions in 2014 in the United States include the liquids-rich Bakken, Permian and Woodford-Ardmore plays and the Gulf of Mexico and totalled approximately 580 million boe. In Canada, reserve additions totalled almost 700 million bbls as a result of further definition of the Kearl resource. Other additions to proved reserves were made in Angola, the Netherlands and Russia.
Reserves additions in 2014 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.
Adapted from press release by Joe Green