Production
In 2007 production was 209 million BOE or an average of 572,602 equivalent barrels per day.
In 2006, Oil and gas production averaged 616,000 barrels of oil equivalent per day for the 4th quarter and a record high for the year of 601,000 equivalent barrels per day.
Reserves
In 2007 the Occidental's consolidated subsidiaries reported preliminary proved reserve additions from all sources of 242 million barrels of oil equivalent (BOE) compared to production of 209 million BOE, for a production replacement rate of 116 percent. Occidental incurred $4.45 billion in costs for oil and gas property acquisitions and exploration and development activities. At the end of 2007, Occidental's consolidated reserves-to-production ratio, assuming production remained at the 2007 level, was 13.7 years.
At year-end 2007, Occidental's worldwide proved reserves, on a consolidated basis, totaled 2.87 billion BOE compared to 2.83 billion BOE at the end of 2006.
The 2007 consolidated proved reserve additions totaled 242 million BOE. Improved recovery provided 104 percent of total additions, acquisitions 25 percent, extensions and discoveries 10 percent, which were partially offset by reductions in previous estimates of the total proved reserve additions.
Over 90 percent of the net additions were in the United States, with the most substantial increases in the Permian Basin, Elk Hills field and the Rocky Mountains. In the Permian Basin, the increased reserves were attributable to higher prices and enhanced recovery techniques, such as drilling and water flood wells, additional CO2 flood development programs and bolt-on acquisitions. The Elk Hills operations employ infill drilling and both gas flood and water flood techniques which contributed to their increased reserves.
In 2007, Occidental increased proved developed reserves to 80 percent of total proved reserves from 78 percent at year-end 2006. The Dolphin project transferred 101 million BOE to the proved developed category during 2007, with no remaining undeveloped reserves at December 31, 2007 for this project. In the United States, the Elk Hills field and the Permian Basin transferred 21 million BOE each into proved developed reserves from undeveloped.
For the three-year period 2005-2007, Occidental's consolidated proved reserve additions totaled 1.125 billion BOE, and total production equaled 580 million BOE, for a reserve replacement rate of 194 percent.
Over the past three years, Occidental incurred $17.63 billion in costs for property acquisitions and exploration and development activities.
At year-end 2006, Occidental's worldwide proved reserves, on a consolidated basis, totaled 2.87 billion BOE compared to 2.57 billion BOE at the end of 2005.
