Oil gas discoveries by major oil companies in the first quarter of 2021 were the lowest in seven years

Global oil gas discoveries in the first quarter of 2021 totaled 1.2 billion barrels of oil equivalent, the lowest level in seven years. Unless more commercial reserves are found, the remaining reserves of the international oil majors could run out within 15 years, according to Restar Energy.

With the decrease of exploration investment the decrease of exploration success rate, the proven oil gas reserves of the international major oil companies are decreasing rapidly in 2020. ExxonMobil, BP, Shell, Chevron, Total Eni have reduced proved reserves by 13 billion barrels of oil equivalent.

ExxonMobil's proved reserves in 2020 are 7 billion barrels of oil equivalent (boe) less than they were in 2019, 30%. This is mainly due to the decline of oil sands in Canada shale gas reserves in the US. ExxonMobil's proved natural gas reserves in 2020 fell by 254.7 billion cubic meters compared to 2019, mainly in the United States. Shell's proved reserves fell 20 per cent to 9bn barrels of oil equivalent in 2020. Oil reserves accounted for about a third of the decline, mainly in the United States South America. Gas reserves accounted for two-thirds of the decline, mainly due to projects in Australia. Chevron added approximately 2 billion barrels of proven reserves through its acquisition of Noble Energy in 2020, but the company's proven reserves declined due to impairments. BP's proved reserves declined 19bn boe in 2019 to 18bn boe in 2020, mainly due to the sale of existing assets a lack of major new discoveries. Significantly, Total Eni's proved reserves have remained stable over the past decade.

Declining proved reserves could challenge major international oil companies to maintain steady oil gas production in the coming years. If reserves are insufficient to maintain production levels, the big international oil companies will struggle to fund expensive energy-transition projects, slowing their clean energy plans. Global oil gas discoveries in the first quarter of 2021 totaled 1.2 billion barrels of oil equivalent, the lowest level in seven years. Unless more commercial reserves are found, the remaining reserves of the international oil majors could run out within 15 years, according to Restar Energy.

With the decrease of exploration investment the decrease of exploration success rate, the proven oil gas reserves of the international major oil companies are decreasing rapidly in 2020. ExxonMobil, BP, Shell, Chevron, Total Eni have reduced proved reserves by 13 billion barrels of oil equivalent.

ExxonMobil's proved reserves in 2020 are 7 billion barrels of oil equivalent (boe) less than they were in 2019, 30%. This is mainly due to the decline of oil sands in Canada shale gas reserves in the US. ExxonMobil's proved natural gas reserves in 2020 fell by 254.7 billion cubic meters compared to 2019, mainly in the United States. Shell's proved reserves fell 20 per cent to 9bn barrels of oil equivalent in 2020. Oil reserves accounted for about a third of the decline, mainly in the United States South America. Gas reserves accounted for two-thirds of the decline, mainly due to projects in Australia. Chevron added approximately 2 billion barrels of proven reserves through its acquisition of Noble Energy in 2020, but the company's proven reserves declined due to impairments. BP's proved reserves declined 19bn boe in 2019 to 18bn boe in 2020, mainly due to the sale of existing assets a lack of major new discoveries. Significantly, Total Eni's proved reserves have remained stable over the past decade.

Declining proved reserves could challenge major international oil companies to maintain steady oil gas production in the coming years. If reserves are insufficient to maintain production levels, the big international oil companies will struggle to fund expensive energy-transition projects, slowing their clean energy plans.

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Source: International Gas Network