Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexCryptocurrenciesCybersecurityPress Releases

U.S. big company oil reserves up 13% since 2017, deals drive recent growth -study

08/17/2022 | 02:10am EDT
FILE PHOTO: The Bryan Mound Strategic Petroleum Reserve is seen in an aerial photograph over Freeport, Texas

NEW YORK (Reuters) - U.S. oil reserves held by 50 large companies rose by 13% over the five years ended in December, according to an Ernst & Young report released on Wednesday, with mergers and acquisitions contributing most of the recent gain.

Oil reserve estimates, which signal the direction of crude output, climbed to 31.8 billion barrels at the end of last year after plummeting in 2020 as the COVID-19 pandemic forced energy companies to curtail activity.

U.S. reserves were still lower than 2019 levels of 32.5 billion barrels, according to the analysis, which used estimates from 50 publicly traded companies holding the largest U.S. oil and gas reserves.

The upswing in reserves last year was primarily due to larger independent oil and gas companies buying private energy companies and acquiring other reserves. The studied group of companies spent $94 billion to acquire proved and unproved properties.

"That significantly exceeds any other year in the study," said Herb Listen, partner at Ernst & Young. Spending last year on exploration, at about $8 billion, was among the lowest in the studied years.

ConocoPhillips, Chevron Corp, Exxon Mobil Corp, EOG Resources and Occidental Petroleum Corp had the biggest U.S. reserves in 2021.

Oil trading near $90 a barrel is likely to spur interest in new production. But pressure on companies to limit spending, return capital to investors, and address climate concerns will challenge any big push for growth, Listen said.

Companies might reallocate funds towards U.S. oil activity following Russia's invasion of Ukraine, which led Exxon and others to exit Russia, said David Johnston, who leads EY's Strategy and Transactions practice in energy.

Over the five-year period, oil production grew 27% to 3 billion barrels, or the highest output during the study period. Output from large independent producers jumped about 70% and integrated producers output rose by 33%. Small independents dropped by 35% over the same period.

The largest U.S. producers in 2021 were Chevron, ConocoPhillips, Occidental, EOG and Exxon, respectively.

(Reporting by Laila Kearney; editing by Richard Pullin)


© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
CHEVRON CORPORATION -6.53% 144.77 Delayed Quote.23.37%
CONOCOPHILLIPS -8.60% 100.59 Delayed Quote.39.36%
EOG RESOURCES, INC. -7.80% 109.12 Delayed Quote.22.84%
EXXON MOBIL CORPORATION -5.32% 85.75 Delayed Quote.40.14%
LONDON BRENT OIL -2.23% 84.9 Delayed Quote.15.96%
OCCIDENTAL PETROLEUM CORPORATION -5.09% 58.73 Delayed Quote.102.59%
US DOLLAR / RUSSIAN ROUBLE (USD/RUB) 3.51% 57.125 Delayed Quote.-24.11%
WTI -2.25% 77.689 Delayed Quote.5.25%
Latest news "Economy & Forex"
03:00aFRENCH PRIME MINISTER : will decide by end of week on how to move forward on contested pensions reform
RE
02:56aEU crisis response meeting to discuss developments in Russia
RE
02:48aThai economy improving but household debt a problem - Finance Minister
RE
02:48aVolkswagen's PowerCo and Umicore form joint venture on precursor and cathode material for batteries
RE
02:46aThai economic conditions improving but recovery uneven - c.bank chief
RE
02:46aQatar's Ooredoo prepares for telecoms tower assets sale
RE
02:41aAustralia shares end at three-month low as strong dollar hits commodity prices
RE
02:41aIberdrola hires Barclays to sell stake in Spanish renewable portfolio, Expansion says
RE
02:41aIndonesia c.bank in FX market to prevent excessive rupiah fall - official
RE
02:39aGCash, other Asian e-wallets to expand into S.Korea with Ant's Alipay+
RE
Latest news "Economy & Forex"