NEW YORK Output from oil major Chevron Corp.'s
(CVX.N) existing oil and gas fields is declining at a rate of
about 4 percent internationally, the company's head of
production told the Reuters Energy Summit on Wednesday.
Decline rates at the company's North American fields stood
at 6 percent or 7 percent, George Kirkland said.
"We have major efforts through all our businesses trying to
mitigate these decline rates," Kirkland said.
Chevron has total net production of about 2.5 million
barrels of oil equivalent (boe) per day and owns about 8.2
billion boe of proved oil and gas reserves.
Declining production from existing wells has triggered a
wave of spending by producers in recent years to find and
develop new reserves, particularly in North American gas
fields, to keep production levels steady.
Oil and gas producers use a variety of enhanced recovery
techniques to limit output declines at producing reservoirs.
"That is hugely important for us," Kirkland said, adding
that a 1 percent change in decline rates equaled about 25,000
barrels per day in output.
"We keep telling all our people we can't give up a large
decline rate and offset that with just new projects," he added.
Chevron has said it aims to grow its international
production by 3 percent on average over the long term.