Exxon says one-fifth of oil, gas reserves threatened by price weakness

Exxon Mobil (NYSE:XOM) says low energy prices could wipe as much as 20% of its oil and natural gas reserves off the books, or the equivalent of nearly 4.5B barrels of crude oil.

If depressed prices persist for the rest of the year, “certain quantities of crude oil, bitumen and natural gas will not qualify as proved reserves at year-end 2020,” the company says in a 10-Q filing.

Unlike peers that have written off billions of dollars in reserves in recent weeks, Exxon’s last significant reserves revision was in 2016, when it removed some of its Canadian oil sands assets from its books, but some eventually were added back.

Exxon said at the time of its Q2 earnings release that it is currently undergoing a “very rigorous” process of reviewing the value of assets and should present the results to the board by November.


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