The issues of petroleum reserves is huge.
The following article highlights concerns that Exxon is not finding adequate reserves to replace depletions, and is engaging in some manipulation to make total reserves listed as assets appear to be better than is actually the case.
Gold, Russell, Gonzalez, Angel, 2011. Exxon struggles to find new oil. The Wall Street Journal, Feb. 16.
I believe this is a massive issue that will play out over and over again as the world approaches peak oil.
From the article:
"In its closely watched annual financial report released Tuesday, the company said that for every 100 barrels it has pumped out of the earth over the past decade, it has replaced only 95."
This is an extremely good article and reflects many things I have heard during the past five years. Given political turmoil in the Middle East, there is not much surplus pumping capacity. If reserves begin to dwindle, prices are going up. This will force big changes. The restructuring from the 2008 Financial Crisis along with gradually rising oil prices will reshape the face of the American economy by 2020.
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