BP 2008 Annual Report Download - page 12

Performance reviewPerformance review
BP Annual Report and Accounts 2008
Performance review
Production and net proved oil and natural gas reserves
The following table shows our production for the past five years and the estimated net proved oil and natural gas reserves at the end of each
of those years.
Production and net proved reservesa
2008f2007 2006 2005 2004
Crude oil production for subsidiaries (thousand barrels per day) 1,263 1,304 1,351 1,423 1,480
Crude oil production for equity-accounted entities (thousand barrels per day) 1,138 1,110 1,124 1,139 1,051
Natural gas production for subsidiaries (million cubic feet per day) 7,277 7,222 7,412 7,512 7,624
Natural gas production for equity-accounted entities (million cubic feet per day) 1,057 921 1,005 912 879
Estimated net proved crude oil reserves for subsidiaries (million barrels)b5,665 5,492 5,893 6,360 6,755
Estimated net proved crude oil reserves for equity-accounted entities (million barrels)c4,688 4,581 3,888 3,205 3,179
Estimated net proved natural gas reserves for subsidiaries (billion cubic feet)d40,005 41,130 42,168 44,448 45,650
Estimated net proved natural gas reserves for equity-accounted entities
(billion cubic feet)e5,203 3,770 3,763 3,856 2,857
aCrude oil includes natural gas liquids (NGLs) and condensate. Production and proved reserves exclude royalties due to others, whether payable in cash or in kind, where the royalty owner has a direct
interest in the underlying production and the option and ability to make lifting and sales arrangements independently, and include minority interests in consolidated operations.
bIncludes 21 million barrels (20 million barrels at 31 December 2007 and 23 million barrels at 31 December 2006) in respect of the 30% minority interest in BP Trinidad and Tobago LLC.
cIncludes 216 million barrels (210 million barrels at 31 December 2007 and 179 million barrels at 31 December 2006) in respect of the 6.80% minority interest in TNK-BP (6.51% at 31 December 2007
and 6.29% at 31 December 2006).
dIncludes 3,108 billion cubic feet of natural gas (3,211 billion cubic feet at 31 December 2007 and 3,537 billion cubic feet at 31 December 2006) in respect of the 30% minority interest in BP Trinidad
and Tobago LLC.
eIncludes 131 billion cubic feet (68 billion cubic feet at 31 December 2007 and 99 billion cubic feet at 31 December 2006) in respect of the 5.92% minority interest in TNK-BP (5.88% at
31 December 2007 and 7.77% at 31 December 2006).
fBP estimates proved reserves for reporting purposes in accordance with SEC rules and relevant guidance. As currently required, these proved reserve estimates are based on prices and costs as of the
date the estimate is made. There was a rapid and substantial decline in oil prices in the fourth quarter of 2008 that was not matched by a similar reduction in operating costs by the end of the year.
BP does not expect that these economic conditions will continue. However, our 2008 reserves are calculated on the basis of operating activities that would be undertaken were year-end prices and costs
to persist.
During 2008, 1,085 million barrels of oil and natural gas, on an oil equivalent* basis (mmboe), were added to BP’s proved reserves for subsidiaries
(excluding purchases and sales). After allowing for production, which amounted to 937mmboe, BP’s proved reserves for subsidiaries were
12,562mmboe at 31 December 2008. These proved reserves are mainly located in the US (44%), Rest of Americas (17%), Asia Pacific (10%),
Africa (11%) and the UK (8%).
For equity-accounted entities, 646mmboe were added to proved reserves (excluding purchases and sales), production was 491mmboe
and proved reserves were 5,585mmboe at 31 December 2008.
*Natural gas is converted to oil equivalent at 5.8 billion cubic feet (bcf) = 1 million barrels.
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