Exxon caves to oil crash with historic global reserves cut. The equivalent of about 3.3bn barrels of untapped crude was removed from the so-called proved reserves category in Exxon’s books. Exxon Mobil Corp disclosed the deepest reserves cut in its modern history as prolonged routs in oil and natural gas markets erased the value of a $16bn oil-sands investment and other North American assets.
The equivalent of about 3.3bn barrels of untapped crude was removed from the so-called proved reserves category in Exxon’s books, the Irving, Texas-based explorer said in a statement. The revisions were triggered when low energy prices made it mathematically impossible to profitably harvest those fields within five years. The sprawling, 3.5bn barrel Kearl oil-sands development in western Canada accounted for most of the hit. The 19% drop amounts to the largest annual cut since at least the 1999 merger that created the company in its modern form, according to data compiled by Bloomberg. That includes 1.5bn barrels of reserves that were pumped from wells. The previous record cut was a 3% reduction taken during the height of the global financial crisis in 2008. The reserves are now at their lowest since 1997.