ExxonMobil further scales down oil reserves

ExxonMobil further scales down oil reserves

US oil major ExxonMobil Corp (NYSE:XOM) has announced its proved oil reserves for 2016 were 20 billion barrels, a reduction of 3.3 billion on the previous year.

The company’s revising down of its reserves is a result of the consistently low price of oil during 2016, as major firms attempt to reduce the impact of a global oil glut on prices.

Notable de-bookings included the entire 3.5 billion barrels of bitumen reserves at the Kearl oil sands project in northern Alberta, along with 800 million barrels of oil in North America, which failed to qualify as known reserves due to lower crude prices.

However, Exxon has underlined its commitment to oil exploration, with the recent addition of 1 billion barrels of new oil and gas reserves in the United States, Kazakhstan, Papua New Guinea, Indonesia and Norway.

The start of 2017 has seen a minor revival in oil prices, which could allow some of Exxon’s reserves to be re-booked as proved reserves, if value continues to rise over the year.