Chevron Replaced About 11% Of 2007 Production

YIKES! I think this is more symptomatic of the lack of large scale investment opportunities in energy than a "Chevron problem". I note Chevron isn't alone in replacing production. That is all a long-winded way of saying we might be at "peak oil".

(Reuters) - Integrated oil and gas company Chevron Corp. replaced only about 11% of the oil and gas it produced in 2007, as its total reserves slipped about seven per cent year over year.

The company's net proved oil and gas reserves, including affiliate companies, fell to 10.77 billion bbls of oil equivalent at the end of 2007, down from 11.62 billion bbls of oil equivalent at the end of 2006. The company reported the figure in its annual report with the Securities and Exchange Commission on Thursday.

That means the company only added around 103 million bbls of oil and gas reserves through exploration or acquisitions in 2007. Based on total production in 2007 of around 946 million bbls of oil, that means the company has a reserve replacement rate of about 11%. Industry analysts typically expect oil and gas companies to replace more than 100% of their annual production as a sign that they are growing.

On the company's fourth-quarter earnings conference call, Chevron had said the company's reserve replacement rate would be in the 10% to 15% range.