US Oil Production Flat Over Past 4 Years
Oil production in the US by most major producers has been flat for the past 4 years at 1.2 billion barrels a day, according to a benchmark study from Ernst & Young. However, gas production rose 7% last year, boosting ending reserves a similar precentage to 138.6 trillion cubic feet. The replacement rate for gas rose to 190% compared with 100% for oil.
E&Y’s benchmark study is based on analysis of SEC filings of 40 companies representing 74% of US oil reserves and 68% of gas reserves.
Other findings of the study:
- Exploration costs more than doubled from 2003 to 2007, and rose 15% in 2007 alone to $11.71 per barrel of oil equivalent.
- Revenues from oil and gas exploration acitivities rose 12% in 2007, though net income from operations rose only 4% due to higher production costs and other factors.
- The amount the 40 companies plowed back into exploration rose to 93% during 2005-2007, compared with 83% for the entire five-year period.
The full preview report, Global E&P benchmark study, which inlcudes details on each company, is available free of charge (registration required.)
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