Occidental Petroleum Boosts Reserves

Occidental Petroleum Corp. said Monday that it added 40% more oil and gas to its worldwide reserves last year than it removed for processing and sale, a sign that the company could have higher production rates in the next few years.

The Los Angeles-based oil and natural gas producer said it added the equivalent of 263 million barrels of oil to its inventory last year, bringing Occidental’s total reserves to the equivalent of 2.31 billion barrels of oil.

The year-end total is up 3% from the end of 2001 and gives Occidental more than 12 years’ worth of production from its current reserves, the company said. Industry analysts view oil company reserves as a kind of “product inventory” measure, and because finding new oil is expensive and difficult, a drop in reserves could signal a decline in future sales.

Occidental’s primary oil production sites are in the U.S., the Middle East and Latin America. About 69% of the reserve growth came from U.S. operations, the company said.

Occidental shares closed down 21 cents at $29 on Monday in New York Stock Exchange trading.

-- Elizabeth Douglass