ExxonMobil’s New Reserves Fall Short For First Time In 22 Years

For the first time in over two decades, ExxonMobil failed to replace the oil and gas that it pumped in a year.ExxonMobil reported on February 19 that it added 1 billion barrels of oil equivalent to its portfolio in 2015, which replaced just 67 percent of its production. The so-called “reserve-replacement ratio” provides an indication on whether or not a company grew its reserve base after accounting for the oil extracted in a given year. That helps investors gauge the growth prospects for a specific driller. Companies always try to grow their reserve base, but failing to achieve at least a 100 percent ratio tends to be viewed as a problem.

Source: ExxonMobil’s New Reserves Fall Short For First Time In 22 Years | OilPrice.com



Categories: Energy

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