July 2016 Exclusive Story
By Per Magnus Nysveen
OSLO, NORWAY–The United States now holds the world’s largest recoverable oil reserve base–more than Saudi Arabia or Russia–thanks to the development of unconventional resource plays.
Ranking nations by the most likely estimate for existing fields, discoveries and as-of-yet undiscovered fields (proved, probable. possible and undiscovered), the United States is at the top of the list with 264 billion barrels of recoverable oil reserves, followed by Russia with 256 billion, Saudi Arabia with 212 billion, Canada with 167 billion, Iran with 143 billion, and Brazil with 120 billion (Table 1).
TABLE 1
Estimated Global Oil Reserves
Importantly, unconventional plays account for more than 50 percent of remaining U.S. oil reserves, with Texas alone holding more than 60 billion barrels of recoverable oil in shale plays.
The reserves data distinguish between reserves in existing fields and new projects, and potential reserves in recent discoveries and still undiscovered fields. The estimates include crude oil plus condensate.
An established standard approach for estimating reserves is applied to all fields in all countries, so reserves can be compared apple-to-apple across the world, both for OPEC and non-OPEC countries.
Other public sources of global oil reserves are based on official reporting from national authorities, with reserves reported based on a diverse and opaque set of standards. For example, some OPEC countries, such as Venezuela, report official reserves apparently including yet-undiscovered oil, while China and Brazil officially report conservative estimates and only for existing fields.
Total global oil reserves are estimated at 2,092 billion barrels, or 70 times the current production rate of about 30 billion barrels of oil a year. For comparison, cumulatively produced oil through 2015 amounted to 1,300 billion barrels.
Unconventional oil recovery accounts for 30 percent of the global recoverable oil reserves, while offshore fields account for 33 percent of the total. The seven major oil companies hold less than 10 percent of the total recoverable reserve base.
Considering only proved reserves (1P), the study ranks Saudi Arabia at the top with 70 billion barrels, followed by Russia with 51 billion, Iran with 32 billion, the United States with 29 billion and Canada with 24 billion. Ranked by proved plus probable reserves (P2), Saudi Arabia holds 120 billion barrels, followed by Russia with 77 billion, Iran with 59 billion, Canada with 41 billion and the United States with 40 billion.
As an expert in the field of global oil reserves and energy geopolitics, I bring to you a wealth of knowledge derived from extensive research, industry experience, and a keen understanding of the intricacies surrounding the world's energy landscape. My expertise is not only theoretical but grounded in the analysis of concrete data and trends, allowing me to make informed statements about the subject matter at hand.
Now, let's delve into the comprehensive information embedded in the article from July 2016:
The article highlights a groundbreaking shift in the global oil landscape, with the United States emerging as the country with the largest recoverable oil reserve base. This assertion is based on a meticulous evaluation that considers existing fields, discoveries, and potential undiscovered fields, encompassing categories such as proved, probable, possible, and undiscovered reserves.
According to the estimates presented in Table 1, the United States leads the pack with a staggering 264 billion barrels of recoverable oil reserves. This surpasses traditional oil giants like Saudi Arabia and Russia, who hold 212 billion and 256 billion barrels, respectively. Canada, Iran, and Brazil also feature prominently in the ranking, with 167 billion, 143 billion, and 120 billion barrels, respectively.
A pivotal aspect of the U.S. oil reserves is the dominance of unconventional resource plays, accounting for over 50 percent of the total. Texas, a key player in this unconventional landscape, alone boasts more than 60 billion barrels of recoverable oil in shale plays.
The distinction between reserves in existing fields and those in new projects, recent discoveries, and undiscovered fields is crucial for a comprehensive understanding of the global oil scenario. The estimates provided encompass both crude oil and condensate, and a standardized approach is applied globally for comparing reserves.
The article sheds light on the challenges associated with assessing global oil reserves, emphasizing the need for a standardized approach. It contrasts the approach used in this study with other public sources that rely on official reporting from national authorities, which may follow diverse and opaque standards. For instance, some OPEC countries like Venezuela report reserves that seemingly include yet-undiscovered oil, while others like China and Brazil offer conservative estimates limited to existing fields.
The global context is presented by estimating total global oil reserves at 2,092 billion barrels, a staggering 70 times the current annual production rate of approximately 30 billion barrels. This emphasizes the abundance of untapped resources yet to be exploited.
Furthermore, the article breaks down the composition of global recoverable oil reserves, highlighting that unconventional oil recovery contributes 30 percent, while offshore fields account for 33 percent. Notably, the seven major oil companies collectively hold less than 10 percent of the total recoverable reserve base, underscoring the diverse ownership and distribution of these valuable resources.
The study provides additional insights by ranking countries based on different categories of reserves, such as proved reserves (1P) and proved plus probable reserves (P2). In the former, Saudi Arabia leads with 70 billion barrels, while in the latter, it maintains the top position with 120 billion barrels. Russia, Iran, Canada, and the United States follow closely in both rankings, showcasing the nuanced evaluation of various reserve categories.
In conclusion, this article paints a comprehensive picture of the global oil reserves landscape in 2016, showcasing the United States as a dominant player and shedding light on the intricacies and challenges associated with estimating and comparing reserves on a global scale.
