The energy that Nexen produces benefits the countries and communities where we operate.
Measuring the Economic Benefits We Create
The economic benefits of Nexen’s activities extend beyond our company’s shareholders and employees. For example, production before royalties averaged 198,000 barrels of oil equivalent per day in 2012, which in turn resulted in royalties and taxes incurred of approximately $1.7 billion. These taxes and royalties are then reinvested by governments to support civic infrastructure, schools and hospitals that are essential to the well-being of society. The contributions Nexen makes through our economic success as a responsible energy developer help drive the strength and resiliency of the communities where we live and work.
Driving Economic Value
Producing energy the world needs: Nexen estimates that as of December 31, 2012, we have access to about 2.2. billion barrels of oil equivalent (boe) of proved plus probable reserves. Our reserves portfolio is weighted to oil (predominantly oil sands related) and about 4% gas.
Providing government revenues: In 2012, Nexen paid more than $1.7 billion in current income taxes and royalties. Of this, $1.4 billion was directed to government in the UK, while $58 million was directed to the Canadian government.
Total Royalties1 and Current Income Taxes2
(Cdn$ millions) |
|
2010 |
2011 |
2012 |
| United Kingdom |
1,005 |
1,448 |
1,456 |
| Yemen |
730 |
779 |
111 |
| Canada3 |
113 |
95 |
58 |
| United States |
21 |
41 |
37 |
| Other4 |
(20) |
(27) |
68 |
| Total |
1,849 |
2,336 |
1,730 |