World Crude Oil Reserves

World crude oil reserves, a finite, non-renewable resource, one that has powered phenomenal economic and population growth over the last century and a half. World Crude Oil Reserves, Running Low? Once we have used up about half of the original reserves, oil production becomes ever more likely stop growing and begin a terminal decline.

Oil companies have, naturally enough, extracted the easier to reach , cheap crude oil first. The oil pumped first was on land, near the surface, under pressure, light and 'sweet' (meaning low sulfur content) and therefore easy to refine.

The remaining oil is more likely to be off-shore, far from markets, in smaller fields and of lesser quality. It therefore takes ever more money and energy to extract, refine and transport.

Under these conditions, the rate of production inevitably drops. Furthermore, all oil fields eventually reach a point where they become economically, and energetically, no longer viable. If it takes the energy of a barrel of oil to extract a barrel of oil, then further extraction is pointless, no matter what the price of oil.

Whether or not we've passed the peak of crude oil reserves, a more significant question may be: What will be the future rate of decline of oil production?

Some form of co-ordinated adaptation might be possible if the annual drop in available oil was no more severe than 1-2% a year. Whereas 10% or more would soon implode the global economy. Most models project decline rates of 2-4%.

Recommended Viewing

How to Trade in Crude Oil Futures
Oil Trading Platforms
US Oil Market FAQs
UK Oil Market FAQs
Oil Trading Forum

Quick Links

Oil Trading - Oil Price Chart - Light Oil Price - Brent Oil Price - Live Oil Prices - Oil Prices