|
|
|
|
|
HOUSTON (Reuters) - Global oil and natural gas reserve replacement fell to 88 percent of production in 2008, despite a 23 percent increase in development spending in that year, according to a study released on Wednesday.
That was the first year since 2004 when global production was not replaced, according to the study done by research firm IHS Herold Inc and upstream consultant Harrison Lovegrove & Co Ltd.
"Total worldwide oil and gas reserves were 0.4 percent lower at year end 2008 as a 3-percent increase in gas reserves was more than offset by a 4.4-billion barrel decline in oil reserves," the companies said in a statement.
Oil reserves fell nearly 3 percent in 2008 mostly because of a 5.2-billion decline in revisions on a steep drop in commodity prices, the study found. Natural gas reserves maintained a 3-percent annual increase seen in the previous five years, but production grew nearly 5 percent to 44.2 trillion cubic feet.
In Europe oil and gas reserve replacement hit a 10-year low in 2008 as companies switched their spending to other regions around the globe.
Revenues rose on record prices for oil, which reached $147.30 in July 2008, but profits were limited by depreciation.
"Higher prices drove revenues 31 percent higher to $1,232 trillion," said Robert Gillon, IHS Herold senior vice president. "But net income gained by a more modest 24 percent, held back by rapidly rising depreciation charges."
(Reporting by Erwin Seba; Editing by Lisa Shumaker)
