Analyst: Oil Majors’ Reserves Slipping

The world’s major oil companies replaced reserves at levels below 100% for the third straight year in 2006, while costs to find and produce the key asset continued to rise, a new analysis shows.

Reserve replacements last year, excluding acquisitions and divestitures, were 91%, slightly below the 92% replaced in 2005, according to a report released Thursday by investment bank Bear Stearns & Co.