Open

Coming up

Don't miss

Replay


LATEST SHOWS

DEBATE

Iraq's Christians - Nowhere to Run? (part 2)

Read more

DEBATE

Iraq's Christians - Nowhere to Run?

Read more

MEDIAWATCH

Towards a "Third Intifada"?

Read more

FOCUS

What solutions for California's overcrowded prisons?

Read more

MIDDLE EAST MATTERS

Gaza conflict: Palestinians mark sombre Eid

Read more

WEB NEWS

Celebrities in the Israel-Gaza crossfire

Read more

IN THE PAPERS

Israeli strike takes out Gaza power station

Read more

IN THE PAPERS

French newspaper apologises for Sarkozy story

Read more

BUSINESS DAILY

Last-ditch talks aim to avert Argentina default

Read more

  • Deadly strike hits Gaza market despite four-hour 'truce'

    Read more

  • Fourth female suicide bomber targets Nigerian city

    Read more

  • Russia defiant as US, EU unveil 'phase three' sanctions

    Read more

  • US rebounds to 4% growth in second quarter

    Read more

  • Suspect in Jewish Museum attack charged with 'terrorist' murder

    Read more

  • Women should not laugh in public, Turkey's deputy PM says

    Read more

  • Video: Coping with rocket attacks in Israel’s Sderot

    Read more

  • Rats on the rampage at Louvre museum gardens

    Read more

  • France evacuates nationals, closes embassy in Libya

    Read more

  • Dozens killed in stampede at Guinea rap concert

    Read more

  • 'Compelling' signs Kosovo leaders trafficked organs, prosecutor says

    Read more

  • Graphic: Ebola spreads across West Africa

    Read more

  • Video: How tourism is helping Rwanda’s gorillas, ex-poachers

    Read more

  • Islamists seize key Benghazi army base as fire rages on

    Read more

  • In pictures: ن - a sign of support for Iraq’s persecuted Christians

    Read more

First drop in annual oil production since 2002

Latest update : 2008-06-11

World oil output fell by 130,000 barrels per day last year to 81.53 million according to BP's 2008 Statistical Review of World Energy. The increase in prices reflects supply constraints as demand from emerging markets is growing strongly.

World oil production fell by 0.2 percent in 2007, the first decline since 2002, while consumption rose by 1.1 percent, BP Plc <BP.L> said on Wednesday, highlighting a tight supply/demand balance that has helped push oil prices to record levels.

 

Production fell by 130,000 barrels per day (bpd) last year to 81.53 million bpd and reserves were essentially flat at 1.24 trillion barrels, London-based BP said in its 2008 Statistical Review of World Energy.

 

The figures compiled by BP underline the world's challenge of boosting production to meet growing demand, particularly from developing economies such as China and India.

 

Oil prices have been rising since 2002, the steepest and longest rise since BP's records began in 1861.

 

The increase in prices, which reached a record last week of $139.12 a barrel, partly reflects supply constraints when demand from emerging markets is growing strongly.

 

"The reality is it's about fundamentals," said Tony Hayward, BP's chief executive, at the launch of the review.
He said a weak U.S. dollar and so-called speculators had been blamed for contributing to oil's rise, but it was more about a tight balance between supply and demand.

 

"We are not running out of hydrocarbons, but bringing them into production is a different matter," he said, pointing to political factors, such as resource nationalism, trade barriers and high taxes.

 

"When it comes to producing more oil, the problems are above ground not below ground and human not geological," Hayward said.

 

Countries such as Venezuela and Russia are grabbing more cash and control from firms that work their oil and gas fields.

 

At the same time, some of the world's largest reserves, such as those of Saudi Arabia, are off-limits to foreign investment. Sanctions and wars have slowed development of Iraq's oil industry.

 

SUPPLY RESTRAINT

 

World production fell, in part, because of supply restraint by the Organization of the Petroleum Exporting Countries (OPEC), source of about two in every five barrels of oil.

 

Supply outside OPEC stayed weak, rising by just over 200,000 bpd in 2007, while output in member-countries of the Organisation for Economic Co-operation and Development (OECD) fell for a fifth straight year, BP said.

 

OPEC production dropped by 350,000 bpd following production cuts implemented in November 2006 and February 2007.

 

Russia, the world's second biggest oil producer, is set to see a year-on-year fall in output this year for the first time this decade, Hayward said.

 

Global oil reserves may have flattened out, but they are enough to meet current production for more than 41 years, BP said.

 

BP's report also found growth in primary energy consumption had slowed in 2007 versus 2006, but at 2.4 percent it was still above the 10-year average for the fifth consecutive year.

 

Global oil consumption grew by 1.1 percent last year, slightly below the 10-year average.

 

Demand in the oil-exporting regions of the Middle East, South and Central America, and Africa accounted for two-thirds of world growth, BP said.

 

Global natural gas production rose by 2.4 percent to 2.94 trillion cubic metres (tcm) in 2007, BP said, while consumption grew by 3.1 percent to 2.92 tcm led by the United States.

 

Proven gas reserves stood at 177.4 tcm at the end of last year, an increase of 0.6 percent.

 

Coal consumption grew by 4.5 percent last year, making it the world's fastest-growing fuel for the fourth straight year.

 

"More than 50 percent of the increment in global primary energy consumption is in coal and more than 70 percent of this increase is growth in China," said Christof Ruehl, BP's chief economist. "Almost 40 percent of global primary energy growth originates from one fuel in one country."

Date created : 2008-06-11

COMMENT(S)