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Rystad Energy has estimated the recoverable oil reserves in the world. The Ministry of Natural Resources does not agree with this assessment

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Rystad Energy has estimated the recoverable oil reserves in the world. The Ministry of Natural Resources does not agree with this assessment

Rystad Energy has estimated the recoverable oil reserves in the world. The Ministry of Natural Resources does not agree with this assessment
July 05
10:30 2016

The consulting firm Rystad Energy states that oil reserves in the USA are higher than in Russia and Saudi Arabia, despite the fact that previously it was thought that the situation was completely the opposite.

According to the Financial Times, Rystad estimates the recoverable oil reserves at 264 billion barrels. These data refer to the supplies that are on the development stage, have been open or have not found in the US yet. Meanwhile, as the company estimated Russia had 256 billion barrels of oil, the Saudi Kingdom – 212 billion barrels.

In addition, despite the reduction of costs in half over the last two years (in some cases cost cutting amounted to $ 40 per barrel).The cost of “black oil” production in the US is much higher than in many states of the OPEC (Organization of the Petroleum Exporting Countries) because a significant amount of the supplies relate to shale fields, says Rystad. In the Middle East countries the expenses of raw materials extraction do not exceed ten dollars per barrel.

As for the oil production in the US: last Friday the oilfield services company Baker Hughes told about the increased number of operating oil wells in the United States last week by 11 -up to 341.

Oil quotations are falling on Tuesday against the background of the information about the June increase in production in Nigeria. Brent prices fell below $ 50 per barrel.

The commodity market analyst of NH Investment & Securities Kang Yu Jin said: “Production growth in Nigeria and the restoration of the wells in the US signifies the end of supply disruptions that have been the main driver of the growth in oil prices recently. Moreover, lower-than-expected demand for gasoline in the United States also puts additional pressure on the market.”

Among other things, Rystad Energy has also counted the world’s supplies, which are amounted to 2.1 trillion barrels, according to the survey. The company informs that this will be enough for 70 years for the humanity if we maintain a stable level of the actual production. But it is hardly possible to claim with confidence that the oil comes to an end through this time, because the exploration of new fields continues to work. For this period the oil and gas companies will find a number of fields.

The Norwegian company has made an analysis of 60 thousand oilfields around the planet for three years.

Meanwhile, the Ministry of Natural Resources and Environment does not agree with the assessment of the consulting company. The total amount of the forecast oil resources in Russia is equal to 49 billion tons, but as for the proved and technologically recoverable reserves, there are far less of them – 29 billion tons or 212 billion barrels, says Sergey Donskoy, the Minister of Natural Resources.

The Minister relies on the information of the Ministry, noting that the data of the consulting company Rystad Energy, which were published in the newspaper “Vedomosti”, are incorrect. The company believes that the amount of recoverable oil reserves in Russia is only 80 billion barrels.

In terms of the production and the global balance of supply and demand, profitably recoverable reserves have importance, says Donskoy. This year the Russian Federation has adopted a new classification of stocks of raw materials and currently profitably recoverable reserves will be allocated in a separate category, recalls Donskoy. The Minister predicts that the volume of these stocks will amount to 14 billion tons or 102 billion barrels.

But in the future the volume of stocks of raw materials in Russia can increase due to the development of unconventional hydrocarbon production technologies. “They will make the oil production from alternative sources profitable”, -said Donskoy.

According to the forecasts of the Ministry of Energy, this year the oil companies that operate in Russia will increase the production to a record high – 540-544 million tones. Accordingly, there will be enough of profitability recoverable reserves for about 26 years, if we maintain a modern production level of the Russian Federation. The total amount of recoverable reserves will last for 54 years.

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