Posted on 06/14/2017 12:51:49 PM PDT by Lorianne
group of U.S.-listed oil companies wrote down their proved reserves in the Canadian oilsands by nearly eight billion barrels in 2016, as energy firms continue to defer investments in major heavy oil projects.
The U.S. Energy Information Administration, a data-gathering agency, tracked 68 oil companies listed on U.S. stock exchanges and found that their total proved reserves declined for the second consecutive year, according to a study released Monday.
The debooking of Canadian oilsands assets accounted for the largest portion of declining reserves over the year, at nearly eight billion barrels. The next highest was Latin America, which saw a roughly one-billion barrel decline.
The declining reserves come as weak commodity prices force companies to revisit the economic viability of their priciest barrels, raising questions over the competitiveness of major, long-term oilsands projects. Big international companies have in recent years shifted capital investment away from Canada’s oilsands in favour of shorter-cycle returns, particularly in U.S. shale basins.
ExxonMobil Corp. recently reported a massive 3.5-billion barrel write down of proved reserves at its Kearl oilsands development, operated by Calgary-based subsidiary Imperial Oil Ltd.
(Excerpt) Read more at business.financialpost.com ...
Tillerson was a huge oil guy until Exxon acquired a natural gas giant. Then Rex "I love Paris" Tillerson had a road to Damascus moment and became Prophet of the Blue Flame.
Exxon is letting its oil reserves twist in the wind in order to create demand for natural gas. American Thinker recently presented a see all, tell all, exposé on the whole sordid affair: Rex Tillerson: Dark Knight of the Hoax.
i.e. it’s there if we need it, but not at $30 a barrel.
For financing mining operations, you can’t claim material in the ground as an asset, if the costs to extract preclude any chance of profit, much less breaking even. USGS and EIA contribute to evaluation of a deposits viability for reserve status.
Natural gas competes with coal, not liquid petroleum, for the electrical generation market. Without a gas-to-liquids plant in the United States, there can’t be products made from NG competing in the local petroleum products market.
Compressed NG for bus, semi-truck, and personal vehicle is a minor market play. Some liquefied NG is shipped to Europe and Asia.
Gas does have advantages. New small natural gas power plants can be located just about anywhere, even in the hearts of cities without much complaint.
I have heard of two new liquified gas maritime terminals that have been proposed in recent years, one in the Pacific Northwest and one in Maryland, both were to be big operations but they got tied up with nimbies and courts. Probably going nowhere.
That's too bad. I'd like to see gas prosper based on exports rather than killing domestic coal or oil.
There is an LNG maritime terminal either built or being built at Sabine Pass, Texas on the Gulf Coast.
http://www.cheniere.com/terminals/sabine-pass/
I thought there were others.
According to the this, we will be all driving electric cars in 10 years.
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