The Oil Drum

311 comments on DrumBeat: May 23, 2007

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Phil Hart on May 23, 2007 - 7:28am

I was having a quick look at the ExxonMobil 2006 annual report today: http://www.exxonmobil.com

While the bottom line is 135% reserves replacement ratio, 75% of their reserves additions were through purchases! (746 out of 990 million barrels, before year end price effects). Somebody else lost a lot or got completely swallowed to give Exxon such a rosy shine :-)

Year end price effects added another 325 million barrels, so total additions were 1315 against production of 976. Don't know why year end revisions were so high, especially because the oil price at the end of 2006 was about the same as end of 2005.

cheers
Phil

www.philhart.com

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jkissing on May 23, 2007 - 11:13am

So, according to your numbers, their production was 733Mb and they found new reserves of 244Mb, so they only replaced 1/3 of their reserves... actually, it is even worse than this WRT liquids...
THey are booking new gas reserves in Qatar and calling them 'boe'; production from old fields are mostly liquid while new reserves are mostly lesser value stranded gas... and, worse still, their investements and 'reserves' in Venezuela are disappearing. IMO, gassier xom will find oily oxy irrisistable at, say, a modest $60B.

XOM does not just know the future, they are in it.

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capslock on May 23, 2007 - 12:36pm

And yet they continue to push demand up as much as possible with their denials of peak oil and their denials of global warming.

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oilmanbob on May 23, 2007 - 2:14pm

Good guess about Occidental, if XOM doesn't want them, Chevron or Connoco-Phillips will. The annual report also boasted about 11,000 acres in the Newark Barnett Shale (Fort Worth), and their land acquisitions in the Piance Basin. That's all economicially marginal gas, but its their first significant onshore US plays in 30 years. They also have a big woodford-barnett play in the Marfa basin, not in their report. I'm thinking that the political heat is making them pursue US gas exploration.
One notable absence is the Athabasca tar sands, which means they don't consider it an economic play.

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Phil Hart on May 23, 2007 - 6:26pm

These figures are oil (liquids) only. Exxon does at least report oil and gas reserves separately, unlike most of the other major oil companies, who are indeed using BOE to hide their own oil reserves failures.