MNP LLP Oilfield Services
Copper Tip Energy
Copper Tip Energy Services
MNP LLP Oilfield Services

EIA shows oilsands saw major reserve writedown in 2016 following oil price drop

Posted On June 12th
By : The Canadian Press
Comment: Off

CALGARY — The U.S. Energy Information Administration has highlighted how last year's oil price drop brought on a massive writedown of high-cost Canadian oilsands reserves.  

The EIA said in a brief Monday that data from 68 U.S.-listed companies shows their oilsands reserves dropped by a total of about 7.7 billion barrels, making up the vast majority of their 8.2-billion net reduction in commercially viable barrels globally.  

The writedowns came after the West Texas Intermediate oil price averaged US$43.44 per barrel in 2016, down 11 per cent from US$48.83 per barrel in 2015.

U.S.-listed companies are required to use price averages for the past year in calculating reserves, while Canadian rules allow companies to use forward-looking prices.

Canada is estimated to have the third largest reserves of crude oil in the world at 171 billion barrels, with 166 billion of those barrels found in the oilsands.

The 68 U.S.-listed companies were left with about 16 billion barrels of oilsands reserves following their downward revisions.

 

The Canadian Press

About the Author
Share This Article By Email

Related Posts

New SHOWCASE Directory Companies

Assetworks
Environmental Refueling Systems (ERS)

Galdos Systems
Predator Drilling

 

Versa-Line
FUELware

Techmation Electric & Controls
Galloway Construction Group