Global recoverable reserves have fallen nine per cent from 2021, a “sizable drop” and yet another threat to the world’s precarious energy security,“Recoverable reserves” refers to oil and gas that would be economically and technically feasible to extract at existing prices. Oslo-based Rystad calculated 1,572 billion barrels of recoverable reserves in its latest tally, down 152 billion barrels from last year.
“While the drop in oil availability is positive news for the environment, it may threaten to further destabilize an already precarious energy landscape,” Per Magnus Nysveen, Rystad Energy’s head of analysis, said in a press release. “Energy security is a matter of redundancy; we need more of everything to meet the growing demand for transport and any action to curb supply will quickly backfire on pump prices worldwide.
The global energy market is a complicated picture of competing incentives and disincentives. On one hand, the imperative of climate change has led to policies around the world that are meant to limit demand, and. At the same time, short-term demand for energy has surged amid the disruption brought by Russia’s invasion of Ukraine and the sanctions Western government’s have levelled at the world’s third-largest producer of oil and gas.
The consultancy also updated its long-term outlook for total undiscovered oil, dropping its estimate to 350 billion barrels from one trillion barrels in 2018, “due to a rapid collapse in investor appetite for exploration exposure, leading to fewer government leases.”released July 4 revealed that producers have significantly cut back on capital expenditures.
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