Energy

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

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