The world petroleum industry continues to deplete its oil and gas reserves faster than it makes new discoveries, says a new report compiled by Petroconsultants SA, Geneva.
The analyst reckons world remaining reserves amounted to 905 billion bbl of oil and condensate and 4.645 quadrillion cu ft of gas at the end of 1994.
Of those volumes, offshore reserves amounted to 201 billion bbl of oil and condensate and 1.364 quadrillion cu ft of gas.
Petroconsultants estimates the industry has recovered 46% of all oil reserves discovered to date and 31% of natural gas.
The firm's figures show that of 311 billion bbl of oil produced during 1980-94, only 204 billion bbl has been replaced through new field wildcat drilling and revisions to reserves estimates for existing fields.
The only area where reserves/production ratios have remained constant is the U.S., which has maintained an R/P of 9-10 years. This is due to a steady decline in production from 8.6 million b/d of oil in 1980 to 6.8 million b/d in 1994, Petroconsultants said.
Even the Organization of Petroleum Exporting Countries, with its huge resource base, has seen its R/P ratios decline. Of 107 billion bbl of oil produced by OPEC members during 1980-94, only 24 billion bbl has been replaced.
Petroconsultants said, "With world oil consumption forecast to rise 1.5-3.5%/year, it is obvious that substantial investment in field development and exploration will be required to satisfy oil demand."
Petroconsultants cites a better record in replacing world gas reserves. During 1980-94 production amounted to 933 tcf, while discoveries and reserves revisions added 982 tcf.
However, the analyst said, world gas production increased from 162 bcfd in 1980 to 219 bcfd in 1994. Gas R/P ratios fell from 77 years in 1980 to 58 years in 1994, while the percentage of reserves produced rose from 20% in 1980 to 31% in 1994.
BREAKOUT OF 1994 PRODUCTION, RESERVES
Remaining
Average Total reserves at
production production yearend 1994
Region (million b/d) Billion bbl
CRUDE AND CONDENSATE
U.S. & Canada 9.9 212.6 35.9
Latin America 8.0 91.2 77.9
Western Europe 5.7 27.1 35.0
Africa 6.8 61.6 63.0
Near East 20.2 203.8 500.0
Far East & Australasia 6.8 52.3 67.7
C.I.S. & eastern Europe 7.5 131.2 125.4
OPEC 27.4 309.1 582.6
NW Europe Offshore 5.2 27.2 32.5
NATURAL GAS (Bcfd) Tcf
U.S. & Canada 63.3 946.6 237.2
Latin America 11.9 118.5 248.7
Western Europe 22.7 184.5 271.3
Africa 10.1 75.1 330.1
Near East 17.6 154.4 1,490.0
Far East & Australasia 21.4 106.9 430.9
C.I.S. & eastern Europe 70.3 544.3 1,637.3
OIL AND CONDENSATE RESERVES/PRODUCTION RATIO
R/P ratio % produced
1980 1994 1980 1994
World 54 38 21 46
World ex. C.I.S. & OPEC 21 16 55 67
OPEC 65 61 23 35
NW Europe offshore 44 17 7 39
Central & S. America 33 30 52 55
Africa 42 25 31 49
Far East & Australasia 34 20 34 53
Source: Petroconsultants SA
Copyright 1995 Oil & Gas Journal. All Rights Reserved.
