This is an excerpt from EERE Network News, a weekly electronic newsletter.

January 16, 2002

U.S. Energy Companies Expanded Oil, Gas Reserves in 2000

The major U.S. energy companies achieved great success with their drill bits in 2000, significantly boosting oil and gas reserves, according to a report released last week by DOE's Energy Information Administration (EIA). The major U.S. energy producers expanded their worldwide oil and gas reserves by an equivalent of 6.6 billion barrels of crude oil in 2000, exceeding their worldwide oil and gas production by 22 percent, allowing the reserves to gain some ground over production.

Meanwhile, the companies actually gained 60 percent of their oil and gas reserve increases through mergers and acquisitions. The companies nearly doubled their worldwide capital expenditures in 2000, and most of the growth in spending went toward mergers and acquisitions. The companies also posted record profits, as their net income increased 133 percent from 1999 levels to a new record of $53.2 billion. See the EIA press release, with a link to the full report.