Occidental Petroleum 2003 Annual Report Download - page 87

Dividends per common share $ .25 $ .25 $ .25 $ .25
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Market price per common share
High $ 29.19 $ 30.75 $ 30.08 $ 30.74
Low $ 24.29 $ 28.05 $ 22.98 $ 26.47
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70
SUPPLEMENTAL OIL AND GAS INFORMATION (Unaudited)
The following tables set forth Occidental's net interests in quantities of
proved developed and undeveloped reserves of crude oil, condensate and natural
gas and changes in such quantities. Crude oil reserves (in millions of barrels)
include condensate. The reserves are stated after applicable royalties. These
estimates include reserves in which Occidental holds an economic interest under
production-sharing contracts and other economic arrangements.
The reserve estimation process involves reservoir engineers, geoscientists,
planning engineers and financial analysts. As part of this process, all reserve
volumes are estimated by a forecast of production rates, operating costs and
capital expenditures. Price differentials between benchmark prices and prices
realized and specifics of each operating agreement are then used to estimate the
net reserves. Production rate forecasts are derived by a number of methods,
including estimates from decline curve analyses, material balance calculations
that take into account the volume of substances replacing the volumes produced
and associated reservoir pressure changes, or computer simulation of the
reservoir performance. Operating costs and capital costs are forecast based on
past experience combined with expectations of future cost for the specific
reservoirs. In many cases, activity-based cost models for a reservoir are
utilized to project operating costs as production rates and the number of wells
for production and injection vary.
A team consisting of the Chief Engineer of Worldwide Reservoir
Characterization, the Chief Petrophysicist, the Manager of Production
Geoscience, a Manager of Financial Planning and Analysis and the Worldwide
Reserves Coordinator perform a review of the reserve estimates at the location
where the estimates were developed.
Estimates of proven reserves are collected in a database and changes in
this database are reviewed by engineering personnel to ensure accuracy. Finally,
reserve volumes and changes are reviewed and approved by Occidental's senior
management.
OIL RESERVES
In millions of barrels
Consolidated Subsidiaries
-------------------------------------------------------------------
Other
United Latin Middle Eastern Other Total
In millions States America East (b) Hemisphere Total Interests(a) Worldwide
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PROVED DEVELOPED AND
UNDEVELOPED RESERVES
BALANCE AT DECEMBER 31, 2000 1,346 144 258 10 1,758 45 1,803
Revisions of previous estimates (14) 10 24 1 21 8 29
Improved recovery 92 -- 47 -- 139 -- 139
Extensions and discoveries 22 10 24 -- 56 -- 56
Purchases of proved reserves 3 -- -- -- 3 -- 3
Sales of proved reserves -- -- -- -- -- -- --
Production (78) (12) (32) (2) (124) (9) (133)
--------------------------------- ---------- --------- --------- ---------- --------- --------- ---------
BALANCE AT DECEMBER 31, 2001 1,371 152 321 9 1,853 44 1,897
Revisions of previous estimates 28 13 (31) 3 13 (1) 12
Improved recovery 69 1 42 -- 112 5 117
Extensions and discoveries 22 11 6 1 40 -- 40
Purchases of proved reserves 51 -- -- 5 56 2 58
Sales of proved reserves (4) -- -- -- (4) -- (4)
Production (85) (19) (34) (4) (142) (8) (150)
--------------------------------- ---------- --------- --------- ---------- --------- --------- ---------
BALANCE AT DECEMBER 31, 2002 1,452 158 304 14 1,928 42 1,970
Revisions of previous estimates (11) -- 10 -- (1) 6 5
Improved recovery 58 6 21 -- 85 4 89
Extensions and discoveries 4 11 25 1 41 6 47
Purchases of proved reserves 98 -- -- -- 98 -- 98
Sales of proved reserves (8) -- -- -- (8) -- (8)
Production (93) (23) (34) (3) (153) (10) (163)
--------------------------------- ---------- --------- --------- ---------- --------- --------- ---------
BALANCE AT DECEMBER 31, 2003 1,500 152 326 12 1,990 48 2,038
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