Chevron's (CVX.N) oil and gas reserves have fallen to the lowest point in at least a decade…
Reserve replacement is one of the key metrics for investors in energy companies, as it gives a sense of how much oil and gas the companies could produce and for how long.
Don’t worry, I know how to fix this, layoffs and increase the dividend!
So...the 5 year booking P1Us has nothing to do with shale and tight. It's black letter regulations. That applies to all oil and gas wells. You can book P1Ds to the economic limit of a well, ie it's full life. Just shows you how little some of our leaders actually know about our business. That's pretty basic reserves info.
@ck: "Shale is terrible for reserves bc you can only book out five years"... that is because well are in rapid decline after 3 years. The "no risk" Permian as a whole will be in rapid decline in 5 years, so we better start doing more conventional exploration (if there is anyone left in the company that know how!).
I have an idea. Lets use our exploration capabilities and drill our way out of this problem.
MW couldn't find oil in a Napa Auto Parts store.
National news has picked upon this news as well and lots of pearl cluching by stock analysts that we are doomed. Shale is terrible for reserves bc you can only book out five years.
Thanks, BZ.