Chevron 2004 Annual Report Download - page 92

90 CHEVRONTEXACO CORPORATION 2004 ANNUAL REPORT
Sales฀ In฀2004,฀sales฀of฀liquids฀volumes฀reduced฀reserves฀
of฀consolidated฀companies฀by฀179฀million฀barrels.฀Sales฀totaled฀
130฀million฀barrels฀in฀the฀United฀States฀and฀33฀million฀barrels฀
in฀the฀“Other”฀international฀region.฀Sales฀in฀the฀“Other”฀region฀
of฀the฀ United฀States฀totaled฀103฀million ฀barrels,฀with฀two฀fields฀
accounting฀for฀approximately฀one-half฀of฀the฀volume.฀The฀27฀
million฀barrels฀sold฀in฀the฀Gulf฀of฀Mexico฀reflect฀the฀sale฀of฀a฀
number฀of฀Shelf฀properties.฀The฀“Other”฀international฀sales฀
include฀the฀disposal฀of฀western฀Canada฀properties฀and฀several฀
fields฀in฀the฀United฀Kingdom.฀All฀the฀sales฀were฀associated฀with฀
the฀company’s฀program฀to฀dispose฀of฀assets฀deemed฀nonstrategic฀
to฀the฀portfolio฀of฀producing฀properties.
Noteworthy฀amounts฀in฀the฀categories฀of฀proved-reserve฀
changes฀for฀2002฀through฀2004฀in฀the฀table฀on฀page฀89฀are฀dis-
cussed฀below:฀
Revisions฀ In฀2002,฀reserves฀were฀revised฀upward฀by฀a฀net฀161฀
billion฀cubic฀feet฀(BCF)฀for฀consolidated฀companies,฀as฀increases฀
of฀759฀BCF฀internationally฀were฀partially฀offset฀by฀net฀downward฀
revisions฀of฀598฀BCF฀in฀the฀United฀States.฀Internationally,฀the฀
majority฀of฀the฀277฀BCF฀net฀upward฀revision฀in฀Africa฀was฀associ-
ated฀primarily฀with฀a฀performance฀assessment฀of฀several฀fields฀and฀
a฀multifield฀gas฀development฀project.฀An฀increase฀of฀375฀BCF฀in฀
the฀Asia-Pacific฀region฀included฀the฀effect฀of฀securing฀a฀contract฀
to฀supply฀LNG฀to฀China฀markets฀from฀company฀producing฀opera-
tions฀in฀Australia.฀In฀the฀United฀States,฀about฀one-fourth฀of฀the฀
598฀BCF฀net฀downward฀revision฀was฀associated฀with฀two฀fields฀
in฀the฀midcontinent฀region฀based฀on฀an฀updated฀assessment฀of฀
production฀performance฀and฀changes฀to฀operating฀conditions฀of฀
the฀wells.฀Most฀of฀the฀remaining฀negative฀revision฀was฀associated฀
with฀reviews฀of฀performance฀in฀many฀fields.฀For฀the฀TCO฀affili-
ate฀in฀Kazakhstan,฀the฀293฀BCF฀increase฀related฀mainly฀to฀project฀
approval฀to฀expand฀gas฀processing฀facilities.฀
In฀2003,฀revisions฀accounted฀for฀a฀net฀increase฀of฀1,627฀BCF฀
for฀consolidated฀companies,฀as฀net฀increases฀of฀2,233฀BCF฀
internationally฀were฀partially฀offset฀by฀net฀downward฀revi-
sions฀of฀606฀BCF฀in฀the฀United฀States.฀Internationally,฀the฀net฀
879฀BCF฀increase฀in฀the฀Asia-Pacific฀region฀related฀primarily฀
to฀Australia฀and฀Kazakhstan.฀In฀Australia,฀the฀increase฀was฀
associated฀mainly฀with฀a฀change฀to฀the฀probabilistic฀method฀of฀
aggregating฀the฀reserves฀for฀multiple฀fields฀produced฀through฀
common฀offshore฀infrastructure฀into฀a฀single฀LNG฀plant.฀The฀
increase฀in฀Kazakhstan฀related฀to฀an฀updated฀geologic฀model฀for฀
one฀field฀and฀higher฀gas฀sales฀to฀a฀third-party฀processing฀plant.฀
The฀net฀976฀BCF฀increase฀in฀the฀“Other”฀international฀area฀was฀
mainly฀the฀result฀of฀operating฀contract฀extensions฀for฀two฀fields฀
in฀South฀America.฀In฀the฀United฀States,฀about฀one-third฀of฀the฀
net฀606฀BCF฀negative฀revision฀related฀to฀two฀coal฀bed฀methane฀
fields฀in฀the฀midcontinent฀region,฀based฀on฀performance฀data฀
for฀producing฀wells.฀Downward฀revisions฀for฀the฀balance฀of฀the฀
write-down฀were฀associated฀with฀several฀fields,฀based฀on฀assess-
ments฀of฀well฀performance฀and฀other฀data.฀
In฀2004,฀revisions฀increased฀reserves฀for฀consolidated฀
companies฀by฀a฀net฀248฀BCF,฀composed฀of฀increases฀of฀928฀BCF฀
internationally฀and฀decreases฀of฀680฀BCF฀in฀the฀United฀States.฀
Internationally,฀about฀half฀of฀the฀346฀BCF฀increase฀in฀Africa฀
related฀to฀properties฀in฀Nigeria,฀for฀which฀changes฀were฀associ-
ated฀with฀well฀performance฀reviews,฀development฀drilling฀and฀
lease฀fuel฀calculations.฀The฀236฀BCF฀addition฀in฀the฀Asia-Pacific฀
region฀was฀related฀primarily฀to฀reservoir฀analysis฀for฀a฀single฀
field.฀Most฀of฀the฀325฀BCF฀in฀the฀“Other”฀international฀area฀is฀
related฀to฀a฀new฀gas฀sales฀contract฀in฀Trinidad฀and฀Tobago.฀In฀the฀
United฀States,฀the฀net฀391฀BCF฀downward฀revision฀in฀the฀Gulf฀of฀
Mexico฀was฀related฀to฀well-performance฀reviews฀and฀technical฀
analyses฀in฀several฀fields.฀Most฀of฀the฀net฀316฀BCF฀negative฀revision฀
in฀the฀“Other”฀U.S.฀area฀related฀to฀two฀coal฀bed฀methane฀fields฀in฀
the฀midcontinent฀region฀and฀their฀associated฀wells’฀performance.฀
The฀963฀BCF฀increase฀for฀TCO฀was฀connected฀with฀updated฀analy-
ses฀of฀reservoir฀performance฀and฀processing฀plant฀yields.
Extensions฀and฀Discoveries฀ In฀2002,฀consolidated฀companies฀
increased฀reserves฀by฀892฀BCF,฀including฀395฀BCF฀in฀the฀United฀
States฀and฀227฀BCF฀in฀the฀Asia-Pacific฀region.฀In฀the฀United฀
States,฀229฀BCF฀was฀added฀in฀the฀Gulf฀of฀Mexico฀and฀161฀BCF฀
in฀the฀“Other”฀region,฀primarily฀due฀to฀drilling฀activities.฀The฀
addition฀in฀Asia-Pacific฀resulted฀from฀a฀gas฀supply฀contract฀in฀
Australia฀that฀enabled฀booking฀of฀a฀previous฀discovery.
In฀2003,฀extensions฀and฀discoveries฀accounted฀for฀an฀
increase฀of฀526฀BCF฀for฀consolidated฀companies,฀reflecting฀a฀
388฀BCF฀increase฀in฀the฀United฀States,฀with฀270฀BCF฀added฀in฀
the฀Gulf฀of฀Mexico฀and฀118฀BCF฀in฀the฀“Other”฀region.฀The฀
Gulf฀of฀Mexico฀increase฀included฀discoveries฀in฀several฀offshore฀
Louisiana฀fields,฀with฀a฀large฀number฀of฀fields฀in฀Texas,฀Louisiana฀
and฀other฀states฀accounting฀for฀the฀increase฀in฀“Other.”
In฀2004,฀extensions฀and฀discoveries฀accounted฀for฀an฀
increase฀of฀214฀BCF,฀reflecting฀an฀increase฀in฀the฀United฀States฀
of฀144฀BCF,฀with฀89฀BCF฀added฀in฀the฀“Other”฀region฀and฀54฀BCF฀
added฀in฀the฀Gulf฀of฀Mexico฀through฀drilling฀activities฀in฀a฀large฀
number฀of฀fields.
Sales฀ In฀2004,฀sales฀for฀consolidated฀companies฀totaled฀547฀
BCF.฀Of฀this฀total,฀436฀BCF฀was฀in฀the฀United฀States฀and฀111฀BCF฀
in฀the฀“Other”฀international฀region.฀In฀the฀United฀States,฀“Other”฀
region฀sales฀accounted฀for฀289฀BCF,฀reflecting฀the฀disposal฀of฀a฀
large฀number฀of฀smaller฀properties,฀including฀a฀coal฀bed฀methane฀
field.฀Gulf฀of฀Mexico฀sales฀of฀147฀BCF฀reflected฀the฀sale฀of฀Shelf฀
properties,฀with฀four฀fields฀accounting฀for฀more฀than฀one-third฀of฀
the฀total฀sales.฀Sales฀in฀the฀“Other”฀international฀region฀reflected฀
the฀disposition฀of฀the฀properties฀in฀western฀Canada฀and฀the฀
United฀Kingdom.
Supplemental Information on Oil and Gas Producing Activities – Continued
TABLE V – RESERVE QUANTITY INFORMATION – Continued