Occidental Petroleum Reports Significant Oil Reserve Additions and Replacement Performance

Strategic Insights -

Occidental Petroleum Corp. (NYSE: OXY) announced a major boost in worldwide oil reserve additions for 1994, totaling 235 million barrels. This represents a 271 percent replacement ratio, indicating that the company found and added new oil reserves that surpassed its production levels by a significant margin. The enhanced oil recovery business played a key role in this achievement, contributing to the company's strong reserve replacement performance. At the end of 1994, Occidental's oil reserves stood at 918 million barrels, up from 793 million barrels at the end of 1993.

Key Takeaways:

  • Occidental Petroleum Corp. added 235 million barrels of oil reserves in 1994, resulting in a 271 percent replacement ratio.
  • The company's enhanced oil recovery business was a major contributor to its reserve replacement performance in 1994.
  • Excluding reserve acquisitions, the replacement ratio was 181 percent worldwide and 106 percent in the United States.
  • Dr. Ray R. Irani, chairman, president and chief executive officer, attributed the company's success to the addition of enhanced oil recovery to its traditional exploration activities.
  • The company replaced 291 percent of its international oil production of 65 million barrels, including reserves from a promising new enhanced oil recovery project in Qatar.
  • Worldwide natural gas reserve additions for the year were 449 billion cubic feet, replacing 183 percent of production.

Statistics:

  • 235 million barrels of oil reserves added in 1994
  • 271 percent replacement ratio
  • 181 percent replacement ratio (excluding reserve acquisitions)
  • 106 percent replacement ratio (in the United States, excluding acquisitions)
  • 918 million barrels of oil reserves at year-end 1994
  • 793 million barrels of oil reserves at year-end 1993
  • 65 million barrels of international oil production
  • 449 billion cubic feet of worldwide natural gas reserve additions
  • 183 percent replacement ratio for natural gas production

Sources:

  • "Occidental Petroleum Corp. Reports 1994 Results" (February 14, 1995, PR Newswire)
  • "Occidental Petroleum Corp. (OXY) Company Profile" (NYSE: OXY)