ExxonMobil 2014 Reserves Replacement Totals 104 Percent
February 23 2015 - 9:00AM
Business Wire
- Reserves replacement exceeds 100
percent for 21st consecutive year
- Reserves additions totaled 1.5 billion
oil-equivalent barrels
- Liquids replaced at a ratio of 162
percent, bringing total proved reserves base to 54 percent
liquids
Exxon Mobil Corporation (NYSE:XOM) announced today it replaced
104 percent of its 2014 production by adding proved oil and gas
reserves totaling 1.5 billion oil-equivalent barrels, including a
162 percent 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 totaled 25.3
billion oil-equivalent barrels, which was made up of 54 percent
liquids, up from 53 percent in 2013, and 46 percent natural
gas.
Liquid additions during 2014 totaled more than 1.2 billion
barrels, or 162 percent of production, and natural gas additions
totaled approximately 300 million oil-equivalent barrels for a 42
percent replacement ratio. Excluding the impact of asset sales,
reserves additions during 2014 replaced 111 percent of
production.
It was the 21st 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 123
percent. Liquids replacement over the period averaged 124 percent
and natural gas replacement averaged 121 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 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 totaled approximately 580 million oil-equivalent
barrels. In Canada, reserve additions totaled almost 700 million
barrels 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.
Resource Base
During 2014, ExxonMobil added 3.2 billion oil-equivalent barrels
to its resource base, driven primarily by resource additions in
Argentina, Canada, Nigeria, Tanzania and the U.S. Additions include
continued success in by-the-bit exploration discoveries,
undeveloped resource additions and strategic acquisitions.
ExxonMobil’s by-the-bit conventional exploration success in 2014
included discoveries in Argentina, Australia, Nigeria, Norway and
Tanzania. Overall, the corporation’s resource base totaled more
than 92 billion oil-equivalent barrels at year-end 2014, taking
into account field revisions, production, and asset sales. The
resource base includes proved reserves, plus other discovered
resources that are expected to be ultimately recovered.
CAUTIONARY NOTE: Proved reserve figures in this release are
based on current SEC definitions. For years prior to 2009 reflected
in our 10-year average replacement ratio and 21-straight years of
at least 100% replacement, proved reserve volumes were determined
on bases that differed from SEC definitions in effect at the time.
Specifically, for years prior to 2009, reserves were determined
using the price and cost assumptions we use in managing the
business, not the historic prices used in the SEC definitions.
Reserves also include oil sands and equity company reserves for all
periods, which were excluded from SEC reserves prior to 2009.
The reserves replacement ratio is calculated for a specified
period utilizing the applicable proved oil-equivalent reserves
additions divided by oil-equivalent production.
The terms “resources” and “resource base” include quantities of
discovered oil and gas that are not yet classified as proved
reserves but that are expected to be ultimately recovered in the
future. The term “resource base” is not intended to correspond to
SEC definitions such as “probable” or “possible” reserves.
The term “project” as used in this release does not necessarily
have the same meaning as in any government payment transparency
reports.
About ExxonMobil
ExxonMobil, the largest publicly traded international oil and
gas company, uses technology and innovation to help meet the
world’s growing energy needs. ExxonMobil holds an industry-leading
inventory of resources, is the largest refiner and marketer of
petroleum products, and its chemical company is one of the largest
in the world. Follow ExxonMobil on Twitter at
www.twitter.com/exxonmobil.
ExxonMobilMedia Relations, 972-444-1107
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