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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: JEB who wrote (269898)	7/3/2002 9:47:36 PM
From: JEB	Respond to of 769667

4. Resource Development Trends (Continued) -------------------------------------------------------------------------------- SPECIAL TOPIC: Reserve Replacement in the United States Bounces Back -------------------------------------------------------------------------------- The FRS companies, in total, added 7.9 billion barrels of oil equivalent to their worldwide oil and gas reserves in 2000 (Table 22). Although most of the FRS companies’ considerable merger and acquisition activity in 2000 was directed toward gaining already discovered oil and gas reserves, much of this activity involved intra-group transactions. (Mergers and acquisitions within the FRS group of companies have no effect on aggregate net purchases of reserves, because purchases of reserves by the acquiring company are offset by sales of reserves from the selling company.) On balance, net purchases of reserves added 1.3 billion barrels of oil equivalent to the FRS companies’ total worldwide oil and gas reserve base in 2000. Additions from exploration and development activity (i.e., through the drill bit) were much more important. The FRS companies added 6.6 billion barrels of crude oil equivalent to their worldwide oil and gas reserves in 2000, consisting of 3.9 billion barrels of oil (crude oil and natural gas liquids) and 15.4 trillion cubic feet of gas (dry natural gas) by finding more oil and gas via the drill bit (Table 22). In fact, drill-bit reserve additions alone exceeded worldwide production of oil and gas by 22 percent. In contrast, 1999 drill-bit reserve additions worldwide barely exceeded production, and fell short in both the U.S. Onshore and Offshore regions. For the U.S. Onshore, drill-bit reserve additions replaced 166 percent of oil and 144 percent of natural gas production in 2000. In addition, and also in contrast to 1999, worldwide net purchases (purchases minus sales) of reserves were positive for both oil and gas. For the first time since 1989, addition of oil reserves by domestic drilling in 2000 exceeded that by foreign drilling. Also drill-bit oil reserve additions in the Africa region fell below those in the U.S. Onshore, after exceeding it for the previous two years. The U.S. Onshore had been the region with the largest oil reserve additions through the drill bit before then. Several trends in worldwide reserve changes for the FRS companies are apparent over the last decade (Figure 27). One is that reserve additions through the drill bit are trending upward for both oil and gas, while production is decreasing for oil and increasing for gas. The FRS companies are shifting from oil into gas production but less so for oil into gas exploration and development results. Except for the early 1990’s, drill-bit reserve additions have generally exceeded production for both oil and gas. The effects of net purchases over time have been substantially smaller than for drill-bit additions and production for both oil and gas, but they have begun to vary more year-to-year in the latter half of the decade. Worldwide, the effect of net purchases of oil reserves between 1997 and 1998 swung 2,750 million barrels, from -1,600 million barrels in 1997 to +1,150 barrels in 1998. This variance reflects the increasing tendency of the FRS companies to engage in mergers with and acquisitions of non-FRS oil and gas companies. Message 17682220 eia.doe.gov

To: JEB who wrote (269898)	7/3/2002 9:50:50 PM
From: J_F_Shepard	Read Replies (1) \| Respond to of 769667

"Try reading my link from the DOE site. You're dead wrong!" OK, let's talk numbers from your link whose data say that the US added reserves of about 2.0 billion barrels in 2000 to take us all the way up to 22.0 billion barrels today!!! Are these the vast untapped reserves your talking about? The MidEast by contrast went from about 250B barrels in 1990 to about 650B barrels now. That's what one calls vast untapped reserves. We consume about 18-20 million barrels a day in this country so you do the simple arithmetic to see how long our oil reserves would last if we didn't import. The 2B new reserves found in 2000 will add about 90 days of consumption if we don't import.