ExxonMobil announced in a press release Friday, Feb. 19 they added one billion oil-equivalent barrels of proved oil and gas reserves, replacing only 67 percent of production in 2015. This is the first time since 1994 in which Exxon has failed to replace 100 percent of oil reserves.
2015 reserves for Exxon were added in Abu Dhabi, Canada, Kazakhstan and Angola. Natural gas reserves were reduced and liquid reserves increased to 834 million barrels and 1.9 billion barrels respectively. It is expected these reserves will be “proved” in the future.
ExxonMobil also made a significant offshore discovery in Guyana and additional discoveries in Iraq, Australia, Romania and Nigeria as well as unconventional resource additions in the Permian Basin, Canada, and Argentina.
In the last ten years Exxon has replaced 115 percent of its reserves and has a current reserve life of 16 years at current production rates.
The Wall Street Journal reported Royal Dutch Shell PLC and BP PLC also failed to replace 100 percent of their reserves this year. However Chevron and Total SA are reported to have found 107 percent replacement reserves for 2015.
Part of the loss of reserves can be accounted for with the oil price crash. As wells no longer become profitable the company must recognize the loss on balance sheets.