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Exxon Bumps Up Oil Reserves with Oil Sands



March 13, 2012 – Comments (1) | RELATED TICKERS: XOM , BNO , USO

Oil companies are always on the search for ways to build up their oil reserves. More reserves means longer production times. Its definitely not a bad move to be on the constant look out for more and more reserves. Exxon recently vamped up their reserves with some tar sands locations. The Trefis Team explains how big of an oil reserve this really is!

"Reserves addition

Over the past ten years, Exxon has managed to post a reserve replacement ration of 99% for liquids and a 150% replacement ratio of gas. In 2011, the Kearl oil sands project helped the company 166% replacement ratio of liquids. The oil sands project will start producing blended bitumen by the end of 2012. [2]The gas replacement ratio for Exxon dropped to 49% in 2011. At present production levels, the company’s reserves can last for 15 years. A strong reserve replacement ratio helps the company maintain production levels and dispose assets that yield low returns. Neglecting the effects of asset sales, the replacement rate for the company stood at 116% in 2011."


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1 Comments – Post Your Own

#1) On March 13, 2012 at 5:11 PM, TheDumbMoney (77.81) wrote:

Watch for XOM one day to bump up liquids reserves estimates in some of the areas it got via the XTO purchase, as fracking is used more to get oil as well as gas.

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