The recent fluctuations in oil and gas prices prompted Exxon to come up with an explanation on Wednesday. It noted that low energy prices would rub out almost 20 per cent of its reserves. The company said if the ongoing situation continues then by the end of 2020, not enough natural gas, bitumen and crude oil would be left in the reserves.
That would hit th4 supply of 4.5 billion barrels of crude oil supply, suffice to meet the needs of all refineries in the US gulf coast for one and a half year.
Earlier in the day, Exxon’s shares saw some hike with 1.9 % gains in the initial trade but lost its grip as the day progressed. It was trading at 0.3 % high when last reported.
Notably, Exxon is elapsing through its annual reviewing process, which includes evaluating its assets. The results for it would provide to Neil Chapman, senior vice president by November.
Interestingly, the last revision of its reserves on a significant level happened in 2016. It was when it stripped off some of its oil-sand assets (Canada), later only to add some of them back.