6 Aug, 2020
After a grim Q2 season for Big Oil, the world’s third-most valuable energy company is warning that 20% of the world’s oil and gas reserves may no longer be viable.
According to Exxon Mobil, one-fifth of the world’s oil and gas reserves will no longer qualify as “proved reserves” at the end of this year if oil prices fail to recover before then.
A flurry of oil and gas companies have written off billions in oil and gas assets as the value of those assets in the current oil price climate is no longer what it once used to be. Exxon was not among them.
Exxon is currently reviewing its oil and gas assets, the results of which should be available by November. But Exxon has caught some flack for not making many asset adjustments over the last decade, while its Big Oil peers have.