ExxonMobil announced that additions to its proved reserves in 2010 totalled 3.5 billion oil-equivalent barrels, replacing 209% of production. Excluding the impact of asset sales, reserves additions replaced 211% of production.
“ExxonMobil continues to lead the industry in reserves replacement,” said Rex Tillerson, chairman and chief executive officer. “Our strategic focus on quality resource capture, a disciplined approach to investment and excellence in project execution have resulted in replacement of more than 100% of production for 17 consecutive years. These reserve additions will enable ExxonMobil to develop new supplies of energy to meet future demand and support economic growth and improved standards of living.”
The corporation’s reserves additions in 2010, the highest since the merger of Exxon and Mobil, reflect strategic acquisitions, new developments, as well as revisions and extensions of existing fields resulting from drilling, studies and analysis of reservoir performance. Reserves additions from acquisitions and subsequent revisions totalled 3 billion oil-equivalent barrels. Additions also came from the Sakhalin-1 Arkutun Dagi project in Russia and other countries including Canada, the United States, Nigeria, Norway and Abu Dhabi (UAE). Liquid additions totalled 905 million oil-equivalent barrels for a 102% replacement ratio and gas additions totalled 2.6 billion oil-equivalent barrels for a 328% replacement ratio.
At year-end 2010, ExxonMobil’s proved reserves base increased to 24.8 billion oil-equivalent barrels, including 2.8 billion oil-equivalent barrels from XTO. The proved reserves base is split between 47% liquids and 53%, and includes oil sands extracted by mining and equity company reserves. The 2010 proved developed reserves add of 3.3 billion oil-equivalent barrels was also the highest since the Exxon and Mobil merger, driven by the startup of several projects, the results of ongoing work programmes, and the acquisition of XTO Energy.
Long-term view
The long-term nature of the industry, and the large size of the discrete projects that provide a significant portion of the corporation’s reserves additions, make it appropriate to consider a time horizon longer than a single year. The 10-year average reserves replacement ratio is 121%, with liquids replacement at 95% and gas at 158%. The reserves additions made during this period comprise a diverse range of resource types and have broad geographical representation. ExxonMobil’s reserves life at current production rates is 15 years.
Significant growth in resource base
ExxonMobil added 14.6 billion oil-equivalent barrels to its resource base in 2010. This represents the largest annual growth and largest total resource base since the Exxon and Mobil merger, driven by resource additions from the United States, Canada, Iraq, Australia, West Africa and Europe. These additions include strategic acquisitions, continued progress in making by-the-bit exploration discoveries, undeveloped resource additions, and revisions to our existing resources from ongoing studies. The resource base associated with the XTO acquisition is 60 trillion cubic feet equivalent. Overall, the corporation’s resource base grew by 9.7 billion oil-equivalent barrels to 84.5 billion oil-equivalent barrels, 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.
