PETR 3310 Petroleum Production Economics

Homework 1
January 24, 2017
Due on January 31, 2017

Name: ___Solution____________________________________________________ (Underline your last name)

Download from Blackboard this document and print it. Write your answers in the spaces
provided. Include copy of your units conversion work. Scan your finished paper copy and
upload it to Blackboard. Hand-in a paper copy of your homework at the beginning of the
class on the due date.
Download from Blackboard a copy of the BP Statistical Review of World Energy 2016 file.
Search through the information in that file to find the answers to questions 1-14.
Download from Blackboard a copy of the 2015 ExxonMobil Financial and Operating Review
file. Search through the information in that file to find the answers to questions 15-24.

Question 1. (5%, 2.5% each)

What was the total proved oil reserve of the U.S. at the end of 2015?
___55__________ Bbbls = ___6.6_________ Btonnes (B=billion=109)

Question 2. (4%)
Back-calculate the units conversion factor between tonnes of oil and bbls of oil used by BP
to report the U.S. oil production? 1 tonne oil = ___8.333 ____ bbls of oil

Question 3. (4%, 1% each)

Since 1 tonne is equal to 1,000 kgm or 2,200 lbm, back-calculate the average oil density used
by BP for the U.S. oil production?
Oil density = ___0.755__ gm/cm3 = ___47.1___ lbm/ft3 = __0.755__ SG (water=1) = __56.0__ oAPI

Question 4. (4%, 2% each)

What was the total proved oil reserve of OPEC at the end of 2015?
___1,211.6____ Bbbls =___169.9_____ Btonnes

Question 5. (4%, 2% each)

What was the total proved oil reserve of the world at the end of 2015?
___1,697.6____ Bbbls =___239.4_____ Btonnes

Question 6. (4%)
What was the average oil production rate of the U.S. in 2015?
___12.704_____________________________ MMbbl/d (MM=million=106)

Question 7. (4%)
What was the average oil production rate of OPEC in 2015?
___38.226_____________________________ MMbbl/d
 PETR 3310 – Homework 01
Question 8. (4%)
What was the average oil production rate of the world in 2015?
___91.670_____________________________ MMbbl/d

Question 9. (4%)
What was the average oil consumption rate of the U.S. in 2015?
___19.396_____________________________ MMbbl/d

Question 10. (4%)

What was the average oil consumption rate of the world in 2015?
___95.008_____________________________ MMbbl/d

Question 11. (4%, 2% each)

What was the total proved gas reserve of the U.S. at the end of 2015?
___10.4_______ Tm3 =___368.7___________ Tft3 (T=Trillion, 1012)

Question 12. (4%, 2% each)

What was the total proved gas reserve of the world at the end of 2015?
___186.9______ Tm3 =___6,600_________ Tft3

Question 13. (4%, 2% each) (from p. 52)

What was the gas production of the U.S. in 2015?
___0.7673_____ Tm3 =___27.1_________ Tft3

Question 14. (4%, 2% each)

What was the gas production of the world in 2015?
___3.5386____ Tm3 =___125_____________ Tft3

Question 15. (4%, 0.8% each)

What were the Proved Reserves of Oil Equivalent (in MMBOE) of ExxonMobil in each of the
past five years? (from p. 53)
Year 2015 2014 2013 2012 2011
Proved Reserves of Oil Equivalent 24,759 25,269 25,216 25,164 24,932

Question 16. (4%, 0.8% each) (from p. 56) (either solution below is OK)
What were the Average Production Costs (in $/BOE) of ExxonMobil in each of the past five
years? (before including DD&A, taxes, etc.)
Year 2015 2014 2013 2012 2011
Average Production Costs per BOE 10.56 12.55 11.48 9.91 9.45
(after including DD&A, taxes, etc., calculated as Total Revenue-Total Earnings)
Year 2015 2014 2013 2012 2011
Average Production Costs per BOE 29.95 45.86 52.21 49.56 47.31

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 PETR 3310 – Homework 01
Question 17. (4%, 0.8% each)
What was the Stockholders’ Equity in ExxonMobil (in MM$) at the end of each of the past
five years? (not found directly, 4% credit for everybody)
Year 2015 2014 2013 2012 2011
Total Stockholders’ Equity

Question 18. (4%, 0.8% each) (from p. 82)

What was the Total Debt (in MM$) of ExxonMobil at the end of each of the past five years?
Year 2015 2014 2013 2012 2011
Total Debt AFIT 38,687 29,121 22,699 11,581 17,033

Question 19. (4%, 0.8% each) (from p. 88)

What was the estimated value of ExxonMobil’s Total Assets (in MM$) at the end of each of
the past five years?
Year 2015 2014 2013 2012 2011
Total Current Assets 42,623 52,910 59,308 64,460 72,963
or Total Assets 336,758 349.493 346,808 333,795 331,052

Question 20. (4%, 0.8% each) (from p. 87)

What were the Total Revenues (in MM$) of ExxonMobil in each of the past five years?
Year 2015 2014 2013 2012 2011
Total Revenues and other 268,882 411,939 438,255 480,681 486,429

Question 21. (5%, 1% each) (from p. 87)

What were the Total Costs and Expenses (in MM$) of ExxonMobil in each of the past five
years?
Year 2015 2014 2013 2012 2011
Total Costs and Expenses and other 246,916 360,309 380,544 401,955 413,172
Question 22. (5%, 1% each)
Find or calculate the Net Income-Profit (Loss) AFIT (in MM$) of ExxonMobil in each of the
past five years? (calculated by subtracting Answers for Question 23 from Answers to Q 24)
Year 2015 2014 2013 2012 2011
Net Income-Profit (Loss) AFIT 16,551 33,615 33,448 47,681 42,206
Question 23. (5%, 1% each) (from p. 87)
What was the Income Tax Expense (negative if Benefit or Credit) (in MM$) of ExxonMobil
in each of the past five years?
Year 2015 2014 2013 2012 2011
Income Tax Expense (Benefit) 5,415 18,015 24,263 31,045 31,051
Question 24. (5%, 1% each) (from p. 87)
What was the Net Income-Profit (Loss) BFIT (in MM$) of ExxonMobil in each of the past 5
years?
Year 2015 2014 2013 2012 2011
Net Income Profit (Loss) & other BFIT 21,966 51,630 57,711 78,726 73,257