BAKU, Azerbaijan, July 30. Authoritative European analytical company Rystad Energy estimates the current global recoverable oil reserves at 1.5 trillion barrels, Trend reports via Rystad Energy.
The estimate has dropped by 700 billion barrels since 2019 due to a decline in global oil exploration activity.
“If oil demand growth keeps up and the spread of electric cars slows down, current reserves will not be enough to meet global oil consumption,” the agency's analysts believe.
According to their data, oil exploration has plummeted as investors fear that discoveries will be overlooked due to the ongoing electrification of vehicles and an expected downturn in both oil demand and prices.
“The 1.5 trillion barrel benchmark yields an understanding of the amount of oil that can be produced over the next 100 years. However, it is realistic and economically viable only if oil demand is not affected by the energy transition and oil prices rise well above $100 per barrel,” the experts at Rystad Energy note.
The analysts argue that in such a case, total oil production would peak around 2035 at 120 million b/s and then decline sharply to 85 million b/s in 2050.
“The world's remaining oil reserves are not enough to sustain oil demand unless there's a shift to electric cars. The attempts to limit oil supplies are unlikely to have any effect on limiting global warming. Rather, the only possible way to keep global temperature rise below 2 degrees Celsius is to ensure rapid electrification of road transportation,” the head of analysis at Rystad Energy, Magnus Nysveen, believes.
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