ExxonMobil Fails to Replace Production for First Time in 22 Years

April 2016, Vol. 243, No. 4

ExxonMobil Corp. failed to replace all of the oil and natural gas it pumped last year with new discoveries and acquisitions for the first time in over two decades. ExxonMobil said its called reserve-replacement ratio fell to 67% in 2015. Prior to that, the world’s largest oil explorer by market value had achieved ratios of 100% or higher for 21 consecutive years.

ExxonMobil held reserves equivalent to 24.8 billion barrels of crude as of Dec. 31, enough to continue current rates of production for 16 years. That’s down from 17.4 years or reserves life at the end of 2014, according to data compiled by Bloomberg. The company added reserves last year in Abu Dhabi, Canada, Kazakhstan and Angola. In the U.S., gas reserves declined by the equivalent of 834 MMbbls  as tumbling prices made some fields unprofitable to drill. The gas reserves removed from the books probably will be drilled at some point in the future when prices are higher, according to the statement.

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