Report April 2, 2019
Resources and proved reserves
Report April 2, 2019
In this article
Resources and proved reserves
Resources
(Source: Wood Mackenzie.)
ExxonMobil added nearly 1.3 billion oil-equivalent barrels in 2018 through successful exploration and strategic acquisitions. More than 700 million barrels were added through highly attractive by-the-bit discoveries in Brazil and Guyana that add to existing planned developments. These resource additions provide low cost-of-supply opportunities for future profitable volumes growth. Furthermore, we added more than 2.2 billion oil-equivalent barrels through net revisions, largely driven by our unconventional assets.
The size and diversity of our global resource base provide us with investment flexibility to profitably develop new supplies of energy to meet growing demand.
Resources base changes(2)
| (billions of oil-equivalent barrels) | 2018 | 5-year average |
| Resource additions | 1.3 | 3.6 |
| Revisions to existing fields | 2.2 | (0.3) |
| Production | (1.4) | (1.5) |
| Asset sales | (0.9) | (0.4) |
| New change versus year-end 2017 | 1.1 | 1.4 |
(2) See Frequently used terms
Scale
Stabroek block resource estimate increases to 5 billion barrels after 10th discovery
The discovery of more than 5 billion gross oil-equivalent barrels in less than four years is a testament to ExxonMobil’s technical expertise and rigorous evaluation processes. These capabilities enable the pursuit of high-potential opportunities in frontier areas like Guyana. In 2018, we made five discoveries at Hammerhead, Longtail, Pacora, Pluma, and Ranger. We are evaluating development options in the southeastern portion of the block, with the potential to combine Pluma with prior Turbot and Longtail discoveries into a major new development area.
Learn more about our project in GuyanaProved reserves
Our proved oil and natural gas reserves total approximately 24 billion oil-equivalent barrels. These reserves represent a diverse portfolio distributed across geographic regions and development types, with liquids comprising 64 percent, up from 57 percent in 2017. Proved developed reserves, or reserves with installed production facilities, account for 68 percent of the proved reserves base. Our average reserves life is approximately 17 years at current production rates.
Proved reserves additions in 2018 replaced approximately 313 percent of production. We added approximately 900 million oil-equivalent barrels of proved reserves associated with project and drilling activities, field performance, acquisitions, and sales. As a result of higher crude oil prices in 2018, approximately 3.6 billion oil-equivalent barrels, including bitumen at Kearl in Canada, qualified as proved reserves additions at year end.
ExxonMobil has a successful track record of proved reserves replacement. Over the past 10 years, we replaced 108 percent of the reserves we produced, including the impact of asset sales. Looking forward, we will continue to develop the most profitable resource opportunities as we progress our inventory of nearly 100 projects. Our development planning organization collaborates with our technology organization to create innovative concepts that maximize value from development projects.
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Scale
The size and breadth of our business provides a critical foundation for long-term success. It enables investments in the development of advanced technologies by leveraging benefits across a large base of operations. Facilities and businesses operated consistently around the globe accelerate experience and learning – replicating innovations, improving effectiveness, and driving down cost. Our size allows us to pursue a wide range of value-accretive investments across the commodity price cycle – specifically taking advantage of counter-cyclical opportunities.Digital Annual Reports Report • April 2, 2019
Technology
Technology has led to the development of industry-advantaged assets, processes, products, and applications. We invest in fundamental science and research, leading to advances in existing processes and products, as well as new discoveries. This allows us to meet the evolving needs of society, lower operating and project costs, and develop higher-value processes and products.Digital Annual Reports Report • April 2, 2019
Strong business fundamentals underpin investments
Our view of global energy and product demand and supply through 2040 informs long-term strategies and investments.Digital Annual Reports Report • April 2, 2019
Integration
We maximize value across the entire value chain,
ensuring the whole is greater than the sum of the
parts. The different sectors we serve and products
we make provide further diversification, helping
to mitigate the impact of commodity price cycles.
Our integrated business provides additional scale,
allows us to share support organizations and facility
infrastructure, and capture synergies in organizational
capabilities and competencies.
Digital Annual Reports Report • April 2, 2019