IRVING, Texas —Today, Exxon Mobil Corporation (NYSE:XOM) announced the replenishment of hydrocarbon resources in 2012 at 115% of the level of the production volume as a result of an increase in proven oil and gas resources by 1.8 billion barrels of oil equivalent with a ratio of the replenishment of crude oil and other liquid hydrocarbons resources of 174%.
“Exxon Mobil’s performance, the best in the industry, in terms of replenishing hydrocarbon resources has, for a long period of time, been the result of our strategy aimed at discovering high-quality resources, a balanced approach to investing and high-quality project implementation,” said the Chairman of the Board and Chief Executive Officer of Exxon Mobil Corporation, Rex W. Tillerson. “The replenishment of recovered volumes with newly discovered oil and gas resources allows the Corporation to create additional volumes of energy needed to meet future energy demand, economic growth and improved standards of living.”
As of the end of 2012, the volume of the Corporation’s proven reserves was 25.2 billion barrels of oil equivalent, 51% of which was liquid hydrocarbons and 49% natural gas. The comparable figure for 2011 amounted to 24.9 billion barrels of oil equivalent, 49% of which was liquid hydrocarbons and 51% natural gas.
In 2012, liquid hydrocarbons increased by 1.4 billion barrels, or 174% of production volume, and natural gas reserves reached 400 million barrels of oil equivalent; the hydrocarbon resource replenishment ratio was 56%. After deducting the losses incurred as a result of the sale of assets, the increase in reserves amounted to 124% of the production volume in 2012.
Thus, for 19 consecutive years, Exxon Mobil Corporation has been replenishing more than 100% of its recovered hydrocarbon volumes. The average resource base replenishment ratio for the last 10 years, which, due to long-term industry projects is considered more indicative of the state of the company’s resource base, amounted to 121 percent. The average hydrocarbon resource replenishment ratio amounted to 102%, and that for natural gas was 145%. The source of resource gain over a 10-year period has been a wide range of resources with a broad geography. At current production levels, Exxon Mobil Corporation has crude reserves for 16 years.
In 2012, the reserves gain from the highly productive Woodford and Bakken reservoirs in the United States totaled about 750 million barrels of oil equivalent. The increase in proven reserves in Canada, including the increase according to the results of the revaluation and expansion of the Nabiye project near Cold Lake, Alberta, and on the continental shelf off Newfoundland and Labrador, amounted to over 600 million barrels of oil equivalent. Projects in Australia, Angola and Kazakhstan were also sources of proven reserves.
The increase in reserves in 2012 was a result of the development of new fields with significant financing, as well as the revaluation and expansion of existing fields based on the results of drilling, geotechnical studies and analysis of reservoir performance. Annual reports of proven reserves are the result of calculations according to a long-established and rigorous methodology that ensures consistency upon every entry of reserves onto the books and the possibility of oversight on the part of the Company’s management.
In 2012, ExxonMobil increased its resource base by 4 billion barrels of oil equivalent, mainly due to the increase in reserves in the United States and Canada, as well as in Romania, Tanzania, Nigeria, Australia, and Papua New Guinea. In addition, the increase in the volume of reserves was due to discoveries of new reserves during drilling operations, increases in undeveloped reserves and strategically important acquisitions. The successful results of traditional exploration drilling by ExxonMobil, which discovered new reserves in Romania, Tanzania, Nigeria, Australia, and Papua New Guinea in 2012, also helped increase the company’s resource base. Another source of significant replenishment of the resource base was the opening and delineation of unconventional hydrocarbon deposits in North America. In general, by the end of 2012, the company’s resource base amounted to 87 billion barrels of oil equivalent, taking into account the revaluation of fields, production and sale of assets. The resource base includes proven reserves and other discovered supplies intended to be extracted in the future.
NOTE: Data provided in this report on the proven reserves for 2009 and subsequent years comply with Securities and Exchange Commission (the Commission) definitions, whereas the data for previous years do not meet the Commission’s definitions in force at that time. In particular, the volumes of reserves for the period until 2009 included in our 10-year resource base replenishment ratio averaging period were calculated based on the Commission's pricing basis, but with consideration of oil sands and corresponding percentages of the Company's own reserves for all periods. Until 2009, the Commission's definition of proven oil and gas reserves did not include oil sands or the Company’s own reserves. For the years preceding 2009 included in the 19-year period specified by us, when the replenishment of resources was at least 100%, the calculation of reserves was based on assumptions about prices and costs adopted in our business practices and not on the prices of the past period adopted in the Commission’s definitions. Reserves calculated on the basis of pricing by ExxonMobil also include oil sands and the company’s own reserves for all periods.
The reserves replenishment ratio is calculated for a specified period using the relevant indicators of a proven increase in reserves of oil equivalent divided by the recovery of oil equivalent.
The terms “resources” and “resource base” include volumes of explored oil and gas reserves that are not yet classified as proven reserves but that should be recovered in the future. The term “resource base” does not imply compliance with the Commission’s definitions such as “forward-looking” or “prospective” reserves.
The term “project” in this statement may have a different meaning than in Rule 13q-1 of the Commission concerning the reporting of payments to the state. For example, for the purpose of this rule, one project may include multiple facilities, contracts, investments, developments, stages, types of work and activities, as well as components each of which may also be informally designated as a “project.”
ExxonMobil is the largest open-type international oil and gas company in the world and uses technology and innovation to help meet the ever-growing global energy demand. ExxonMobil has a leading position in the industry in terms of reserves and is the world’s largest company in terms of processing and marketing of petroleum products. The company’s chemical division is also one of the largest in the world. ExxonMobil page on Twitter.