>From the WSJ of 16 June 04: OIL MAJORS REPLACE JUST 75% OF RESERVES PUMPED, STUDY SAYS
London-Oil companies replaced only 75% of the reserves they pumped during the past few years, far below what Securities and Exchange Commission filing indicate, a report by Deutsche Bank AG says. SEC filings by oil major show companies increased their total oil reserves, replacing 116% of what they pumped during 20001-2003. But Deutsche Bank says those figures represent historic discoveries that companies booked later and don't reflect genuinely new finds. The report found oil majors increased their reserves at a rate 20% lower than during the 1990s, partly as a result of a cut of nearly a third in exploration budgets, as companies streamlined operations after a series of measures. In additions, companiesfocused more on getting out the oil that had already discovered. BP PLEC, meanwhile, said in its closely followed annual statistical report that world oil reserves, as of the end of 2003 are sufficient to support current global production levels of nearly 77 million barrels a day for the next 41 years..... -------------------- Hmmm.....replacement rates declining after draconian cuts in exploration budgets due to fixed asset elimination due to "streamlining" operations due to mergers... Hey I did NOT write the article.
