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Higher prices and unconventional drilling drive proved reserves
additions
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Reserves life at current production rates is 17 years
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Continuing success in exploration and strategic acquisitions in Guyana
and Brazil add high-quality resources
Exxon
Mobil Corporation (NYSE:XOM) said today it added 4.5 billion
oil-equivalent barrels of proved oil and gas reserves in 2018, replacing
313 percent of the year’s production.
ExxonMobil's proved reserves totaled 24.3 billion oil-equivalent barrels
at year-end 2018. Liquids represented 64 percent of the reserves, up
from 57 percent in 2017.
“We continue to add high-value, attractive assets to our portfolio that
have positioned the company for long-term growth,” said Darren W. Woods,
ExxonMobil chairman and chief executive officer. “Our unique strengths,
integrated businesses and technical expertise continue to grow value for
our shareholders.”
ExxonMobil’s reserves life at current production rates is 17 years. Over
the past 10 years, ExxonMobil has added proved oil and gas reserves
totaling approximately 17 billion oil-equivalent barrels, replacing 108
percent of produced volumes, including the impact of asset sales.
Consistent with SEC requirements, ExxonMobil reports reserves based on
the average of the applicable market price on the first day of each
calendar month during the year. As a result of higher prices in 2018,
about 3.6 billion oil-equivalent barrels, including volumes at the Kearl
oil sands development in Canada, qualified as proved reserves additions
at year-end.
During 2018, proved additions from unconventional plays totaled
approximately 1.2 billion oil-equivalent barrels. Significant additions
in the Permian Basin are supported by ExxonMobil’s growth plan including
increased drilling activity and infrastructure development.
A downward revision of approximately 800 million oil-equivalent barrels
in the Netherlands was a result of an agreement with the Dutch
government to curtail production at the Groningen field.
Reserves additions reflect new developments as well as revisions,
including price impacts, and extensions of existing fields resulting
from drilling, studies and analysis of reservoir performance.
ExxonMobil added 1.3 billion oil-equivalent barrels to its resource base
in 2018 through by-the-bit exploration discoveries and strategic
acquisitions, primarily in Guyana and Brazil. The resource base includes
proved reserves, plus other discovered resources that are expected to be
ultimately recovered.
“Multiple new discoveries offshore Guyana, continued growth in the
Permian Basin and a strategic acquisition in Brazil greatly enhanced our
already strong portfolio of high-quality, low-cost-of-supply
opportunities,” said Woods.
The annual reporting of proved reserves is the product of the
corporation’s long-standing, rigorous process that ensures consistency
and management accountability in all reserves bookings.
About ExxonMobil
ExxonMobil, the largest publicly traded international energy company,
uses technology and innovation to help meet the world’s growing energy
needs. ExxonMobil holds an industry-leading inventory of resources, is
one of the largest refiners and marketers of petroleum products, and its
chemical company is one of the largest in the world. For more
information, visit www.exxonmobil.com
or follow us on Twitter www.twitter.com/exxonmobil.
Cautionary Note: Proved reserve figures in
this release are based on current SEC definitions. The reserves
replacement ratio is calculated for a specified period utilizing the
applicable proved oil-equivalent reserves additions divided by
oil-equivalent production. The terms “resources” and “resource base”
include quantities of discovered oil and gas that are not yet classified
as proved reserves but that are expected to be ultimately recovered in
the future. The term “resource base” is not intended to correspond to
SEC definitions such as “probable” or “possible” reserves.
Statements of future events or conditions in this release are
forward-looking statements. Actual future results, including production
rates and timing and resource recoveries, could differ materially due to
factors such as changes in market conditions affecting the oil and gas
industry or long-term oil and gas price levels; political or regulatory
developments including the grant of necessary approvals; reservoir
performance; the outcome of future exploration and development efforts;
technical or operating factors; the outcome of future commercial
negotiations; and other factors cited under the caption “Factors
Affecting Future Results” on the Investors page of our website at www.exxonmobil.com.
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