This studyanalyzes the worldwide and regional exploration and production (E&P) results for 75 companies for a five-year period from 2008 to 2012.
Total worldwide capital expenditures for the companies in the study were US$541.0b in 2012. The strong growth in exploration spending and development spending was somewhat offset by declines in property acquisition costs. Combined exploration and development spending increased 20% in 2012 and grew 48% from 2008 to 2012. All regions in the study showed increases in total spending in 2012, but the level of reinvestment in oil and gas operations has varied widely by region over the five-year study period.
Worldwide end-of-year oil reserves for the study companies increased 3% in 2012, with Canada and the US reporting the largest increases. After decreasing in 2011, worldwide oil production rose 2% in 2012 as all regions except Europe saw increases. Oil production in Europe decreased as recent capital expenditures have not been sufficient enough to maintain the reserve base. Oil production replacement rates have been strong in recent years with a finding and development (or excluding purchases and sales) rate of 148% in 2012 and a five-year (2008-2012) average of 122%.
Worldwide end-of-year gas reserves for the study companies decreased 2% in 2012. Reserve additions of 64.8 trillion cubic feet (Tcf) were reported as extensions and discoveries. These new reserves were somewhat offset by downward revisions of 28.3 Tcf which were primarily due to low natural gas prices in the US and Canada. Natural gas production increased 3% in 2012 with the US posting the largest increase. The increase in US gas production occurred despite production curtailments due to low prices underscoring how much potential growth could be seen in the future, if prices increase. The decline in gas reserves in 2012 led to a finding and development (or excluding purchases and sales) gas production replacement rate of 84%. The five-year (2008-12) average was still a healthy 125%.
About the study
The Global oil and gas reserves study is a compilation and analysis of certain oil and gas reserve disclosure information reported by companies in their annual reports filed with the US Securities and Exchange Commission or in their publicly available annual reports. This report presents the worldwide and regional exploration and production (E&P) results for 75 companies for the five-year period from 2008 through 2012. The results for these companies are generally representative of the E&P industry as a whole, with the exception that many national oil companies do not publicly disclose financial and operational data and their performance trends may vary significantly.