Eyes on dwindling Big Oil reserves after tough quarter

Investors are looking beyond what was clearly a tough first quarter for major oil companies, and toward how they can ramp up production levels to meet demand whenever the economy bounces back.

Questions about how to replace reserves, whether through projects in the pipeline or acquisitions, loom large for an industry caught between tougher regulations and tax codes at home and the governments that control most of the world’s oil and gas supplies abroad.

“They have normal decline rates with existing assets. It’s an ongoing struggle for them,” said Brian Youngberg, an analyst at Edward Jones. “You’re always looking to see can any of these companies break away from the pack, and maybe show that they can do a little bit better over time than their peers.”
Reuters