Occidental Petroleum 2008 Annual Report Download - page 93

Download and view the complete annual report

Please find page 93 of the 2008 Occidental Petroleum annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 116

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116

Changes in the Standardized Measure of Discounted Future
Net Cash Flows From Proved Reserve Quantities
In millions
For the years ended December 31, 2008 2007 2006
Beginning of year $42,862 $24,720 $24,390
Sales and transfers of oil and gas produced, net of production costs and other operating expenses (12,822) (9,286) (8,147)
Net change in prices received per barrel, net of production costs and other operating expenses (37,334) 28,434 (3,752)
Extensions, discoveries and improved recovery, net of future production and development costs 2,274 6,671 2,696
Change in estimated future development costs (3,602) (3,002) (2,658)
Revisions of quantity estimates (1,458) (2,237) 1,235
Development costs incurred during the period 4,094 2,892 2,373
Accretion of discount 5,382 3,096 3,206
Net change in income taxes 13,481 (8,360) 592
Purchases and sales of reserves in place, net 854 1,801 4,090
Changes in production rates and other 2,924 (1,867) 695
Net change (26,207) 18,142 330
End of year $16,655 $42,862 $24,720
Average Sales Prices and Average Production Costs of Oil and Gas
The following table sets forth, for each of the three years in the period ended December 31, 2008, Occidental’s approximate average
sales prices and average production costs of oil and gas. Production costs are the costs incurred in lifting the oil and gas to the surface and
include gathering, treating, primary processing, field storage, property and production taxes and insurance on proved properties, but do not
include depreciation, depletion and amortization, royalties, income taxes, interest, general and administrative and other expenses.
Consolidated Subsidiaries
United
States
Latin
America (a)
Middle East/
North Africa Total
Other
Interests (b)
2008
Oil — Average sales price ($/bbl.) $91.16 $70.53 $94.70 (c) $88.34 $96.30 (c)
Gas — Average sales price ($/Mcf) $8.03 $4.43 $1.01 $6.10 $ —
Average oil and gas production cost
($/bbl.) (d) $16.73 $15.46 $9.98 $14.75 (e) $26.11
2007
Oil — Average sales price ($/bbl.) $65.67 $56.66 $69.24 (c) $64.86 $68.74 (c)
Gas — Average sales price ($/Mcf) $6.53 $2.66 $0.99 $5.68 $ —
Average oil and gas production cost
($/bbl.) (d) $13.95 $10.74 $8.91 $12.34 (e) $14.44
2006
Oil — Average sales price ($/bbl.) $57.84 $52.40 $61.58 (c) $57.81 $62.59 (c)
Gas — Average sales price ($/Mcf) $6.49 $2.00 $0.97 $6.00 $ —
Average oil and gas production cost
($/bbl.) (d) $12.33 $10.02 $8.22 $11.13 (e) $15.40
(a) Sales prices include royalties with respect to certain of Occidental’s interests.
(b) Includes prices and costs applicable to the equity investee in Yemen. Occidental's joint venture interest in Russia was sold in 2007, and all years exclude the
prices and costs applicable to the joint venture interest in Russia.
(c) Excludes income taxes owed by Occidental but paid by governmental entities on its behalf.
(d) Natural gas volumes have been converted to BOE based on energy content of six Mcf of gas to one barrel of oil.
(e) Includes taxes other than on income of $2.62, $1.97 and $1.94 for the years ended December 31, 2008, 2007 and 2006, respectively.
79
Net Productive and Dry — Exploratory and Development Wells Completed