Newspaper article THE JOURNAL RECORD

Reserve Replacement Ratios for City, State Firms below Nation

Newspaper article THE JOURNAL RECORD

Reserve Replacement Ratios for City, State Firms below Nation

Article excerpt

Publicly-held Oklahoma and Oklahoma City companies fared worse in proved oil and gas reserves, replacement ratios and other categories during 1986 than their counterparts in the domestic energy industry, Arthur Andersen & Co. reported Monday.

That was included in statistics compiled from financial reports of 270 U.S. public oil and natural gas companies for Arthur Andersen's eighth "Oil and Gas Reserve Disclosures."

The Oklahoma City companies in the survey included Alexander Energy Corp., Beard Oil Co., Bogert Oil Co., Devon Resource Master Limited Partnership, Hadson Corp., Kerr-McGee Corp., Magic Circle Energy Corp., Petroleum Investments Ltd., Plains Resources Inc., Ratex Resources Inc., Texas International Co., Amarex Inc. and Woods Petroleum Corp.

Kerr-McGee was listed as a diversified firm. Woods Petroleum was listed as a subsidiary of Sunshine Mining Co., a diversified firm, while Amarex was listed as a subsidiary of Houston-based Templeton Energy Inc. as an independent (with no refining or marketing operation). The other Oklahoma City firms were listed as independents.

Other Oklahoma companies in the survey included Noble Affiliates Inc. of Ardmore plus the Tulsa-based companies of Helmerich & Payne Inc., ONEOK Inc., Petromark Resources Co., Phillips Petroleum Co., Reading & Bates Corp., Samson Energy Co., Unit Corp., Cities Service Oil & Gas Corp., General American Oil and R.J. Reynolds.

Cities Service is a subsidiary of Occidental Petroleum Corp., while General American and R.J. Reynolds are subsidiaries of Phillips.

For Oklahoma City publicly-held companies as a group:

- Proved oil reserves fell 19.9 percent during 1986, according to the survey. The reserves totaled 62.6 million barrels at the end of 1986, compared to 78.2 million barrels controlled by those companies in 1985, according to the survey.

- Proved natural gas reserves fell 8.15 percent last year. They amounted to 924.07 billion cubic feet in 1986, compared to 1 trillion cubic feet in 1985.

- Expenditures for exploration and development were down 39.5 percent in 1986 from 1985, the survey said. Those firms spent $110.6 million in 1986, compared to $182.98 million in 1985.

- Crude oil replacement ratios (the extent to which crude oil volumes produced in 1986 have been replaced through new reserves or through revisions added during the year) fell extensively. The firms produced 17 percent more than they replaced in 1986 after replacing 36 percent of produced reserves with new reserves in 1985. …

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