Integrated oil and gas company Chevron replaced only about 11 percent of the oil and gas it produced in 2007, as its total reserves slipped about 7 percent year over year.
The company's net proved oil and gas reserves, including affiliate companies, fell to 10.77 billion barrels of oil equivalent (boe) at the end of 2007, down from 11.62 billion boe at the end of 2006. The company reported the figure in its annual report with the Securities and Exchange Commission Thursday.
That means the company only added around 103 million barrels of oil and gas reserves through exploration or acquisitions in 2007. Based on total production in 2007 of around 946 million barrels of oil, that means the company has a reserve replacement rate of about 11 percent.
Industry analysts typically expect oil and gas companies to replace more than 100 percent of their annual production as a sign that they are growing.
On the company's ourth-quarter earnings conference call, Chevron had said the company's reserve replacement rate would be in the 10 to 15 percent range.