Lectures7 8 WORLDPETROLEUMRESERVES

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WORLD PETROLEUM RESERVES
Presentation · February 2016

DOI: 10.13140/RG.2.1.5092.9525
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Lecture 5: WORLD PETROLEUM RESERVES
Hassan Z. Harraz
hharraz2006@yahoo.com
2015- 2016
Prof. Dr. H.Z. Harraz Presentation

Outline of Lecture
1) CONVENTIONAL CRUDE OIL RESERVOIRS (i.e., CONVENTIONAL OIL)

1.1) Giant Oil Field Discovery of Giant Fields
1.2) Arctic (or Polar) Oil Prospective Resources Challenges for activity in the Arctic
1.3) Deepwater Oil Prospective Resources Future challenges and technology trends:
2) UNCONVENTIONAL CRUDE OIL RESERVOIRS (i.e., UNCONVENTIONAL OIL)
3) NATURAL GAS
3.1) Natural gas cost structure
4) WORLD PETROLEUM RESERVES
4.1) World Crude Oil Reserves
4.2) Estimated Reserves by Country
4.2.1) Reserves
4.2.2) World Proven Crude Oil Reserves
5) THE DEBATE OVER RESERVES: PESSIMISTS AND OPTIMISTS
6) “FLAT EARTHER’S” PRODUCTION CURVE Summary: Optimists and Pessimists
7) THE UNPRECENTED UPSURGE OF OIL PRODUCTION CAPACITY AND WHAT MEANS FOR THE WORLD
7.1) Underestimation of Supply
7.2) There’s Plenty of Oil Underground
7.3) Price and Technology are the most critical factors in Determining Reserve and Production Growth
7.3.1) Technology
7.3.2) Price - Cost
7.4) U.S. SHALE-TIGHT OIL: The case of Bakken Shale OVERESTIMATION OF DEMAND ?
© Hassan Harraz 2016 2

Occurrence of Petroleum
In nature, petroleum deposits are occurring in two different modes, namely:
i) Conventional oil reservoirs
Figure shows Crude oil reservoirs; Hydrocarbon trap; traditional oil well methods.
ii) Unconventional oil reservoirs.

Oil that has escaped to the surface and extracted by
mining techniques. Unconventional deposits, such as:-
• Marsh gas ,
Room and pillar oil shale mine in Estonia
• Coal-bed methane,
• Tar sands, and
• Oil shales….etc

1) CONVENTIONAL CRUDE OIL RESERVOIRS
 Conventional oil is generally easy to obtain, transport, and process.
 Conventional oil reserves are extracted using their inherent pressure, pumps, flooding or
injection of water or gas.
 ~95% of all oil production comes from conventional oil reserves.
 Conventional oil is either light or heavy:
Heavy refers to oil with a thick consistency that does not flow easily.
Light oil can flow naturally to the surface or is extracted from the ground using pump
jacks.
 Pump jacks are also used to remove heavy oil from the ground. Conventional oil is produced
on land and offshore.
 We consider the worlds conventional oil fields, regardless of location include:
 Arctic oil (or Polar oil)
 Deepwater oil
 Fractured source rock
 Heavy crude oil

1.1) Giant Oil Fields
 Giant oil fields are the world’s largest.
 The largest fields discovered during the last decade where 35 giant oil fields discovered.
 Giant Oil Field:
An oilfield with estimated ultimate recoverable (URR) oil of more than 500 million
barrels (>500 Million BBLS or >0.5 Gb) (~1% of the total number of world oil fields)
 There are two ways to define a giant oil field:
 One is based on ultimately recoverable resources (URR), and
 the second is based on maximum oil production level.
 Giant oil fields contribution to world oil production was over 65 % in 2005, with the 20 largest
fields alone responsible for nearly 25%..
 The overall production from giant fields is declining, because a majority of the largest giant
fields are over 50 years old, and fewer and fewer new giants have been discovered since the
decade of the 1960s. The average contribution from an individual giant oilfield to world
production is less than 1%. Thus, with few exceptions, e.g., Ghawar, the contribution from a
single field is generally small compared to the total.
 20 years ago, 15 fields had the capacity to produce more than 1,000,000 b/d.
 Today only four field can produce that much:
 Ghawar (Saudi Arabia), 1948
 Kirkuk (Iraq), 1938
 Burgan Greater (Kuwait), 1927
 Cantarell (Mexico), 1976
 The sharp increase in discovery in 1955 is likely to be due to modern seismic and opening of new areas
Källa: AAPG, OGJ, Simmons & Company International

Here Are The World’s Five Most Important Oil Fields
1) Ghawar (Saudi Arabia)
 The legendary Ghawar field has been churning out oil since the early 1950s, allowing Saudi Arabia to claim the
mantle as the world’s largest oil producer and the only country with sufficient spare capacity to act as a swing
producer. Holding an estimated 70 billion barrels of remaining reserves, Ghawar alone has more oil reserves
than all but seven other countries, according to the Energy Information Administration. Some oil analysts believe
that Ghawar passed its peak perhaps a decade ago, but Saudi Arabia’s infamous lack of transparency keeps
everyone guessing. Nevertheless, it remains the world’s largest oil field, both in terms of reserves and
production. It continues to produce 5 million barrels per day (bpd).
2) Burgan (Kuwait)
 Just behind Ghawar is another massive oil field located in the Middle East. The Burgan field was originally
discovered in 1938, but production didn’t begin until a decade later. The field holds an estimated 66 to 72 billion
barrels of reserves, which accounts for more than half of Kuwait’s total, and it produces between 1.1 and 1.3
million bpd.
3) Safaniya (Saudi Arabia/Kuwait)
 The Safaniya field is the world’s largest offshore oil field. Located in the Persian Gulf, the Safaniya field is
thought to hold more than 50 billion barrels of oil. It is Saudi Arabia’s second largest producing field behind
Ghawar, churning out 1.5 million bpd. Like Saudi Arabia’s other fields, Safaniya is very mature as it has been
producing for nearly 60 years, but Saudi Aramco is working hard to extend its operating life.
4) Rumaila (Iraq)
 Iraq’s largest oil field is the Rumaila, which holds an estimated 17.8 billion barrels of oil. Located in southern Iraq,
Rumaila was highly sought after when the Iraqi government put blocks up for bid in 2009. BP and the China
National Petroleum Corporation (CNPC) are working together to develop the giant field along with Iraq’s state-
owned South Oil Company. The field now produces around 1.5 million bpd, but its operators have plans to boost
that production to 2.85 million bpd over the next couple of years.
5) West Qurna-2 (Iraq)
 Also located in southern Iraq, the West Qurna-2 field is Iraq’s second largest, holding nearly 13 billion barrels of
oil reserves. The West Qurna field was divided in two and auctioned off to international oil companies. Russia’s
Lukoil took control of West Qurna-2 and successfully began production earlier this year at an initial 120,000 bpd.
Lukoil plans on lifting production to 1.2 million bpd by the end of 2017. The neighboring West Qurna-1 field –
operated by a partnership of ExxonMobil, BP, Eni SpA, and PetroChina – holds 8.6 billion barrels of oil reserves.
They hope to increase production from 300,000 bpd to more than 2.3 million bpd over the next half-decade.
 It’s clear that the Middle East is still the center of the universe when it comes to oil. Despite their age, these
supergiants remain the oil fields of tomorrow. And as the tight oil revolution in the U.S. plays out, these fields will
remain, and the world will continue to depend heavily on the fortunes of a few countries in the Middle East
6
Serial Discovery Production Range of URR
Country Field Name
No Year (b/d) (GB) Largest Oil Fields
1 Saudia Arabia Ghawar 1948 5000000 66 - 100
2 Kuwait Burgan Greater 1938 1200000 32 - 60 Worldwide
3 Azerbaijan Azeri-Chirag-Guneshli 850000
4 Mexica Ku-Maloob-Zaap 800000
5 Abu Dhabi Zakum 1964 750000 17 - 21
6 Russia Samotlor 1961 750000 6 - 14
7 Russia Priobskoye 650000
8 Mexica Cantarell Complex 1976 660000 11 - 20
9 Iran Ahwaz (Bangestan) 1958 600000 13 - 15
10 Saudia Arabia Shaybah 500000
11 Abu Dhabi Bu Hasa 500000
12 Qatar Al Shaheen 480000
13 Kazakhstan Tengiz 450000
14 Russia Fedorovo-Surgutskoye 400000
15 Algeria Hassi Messaoud 380000
16 Saudia Arabia Abqaiq 1941 375000 10 - 15
17 Venezuela El Furrial 370000
18 Barzil Marlim 350000
19 Venezuela Junin 320000
20 Abu Dhabi Bab 320000
21 Saudia Arabia Safaniya 1951 21 -36
22 Venezuela Bolivar Coastal 1917 14 - 16
23 Saudia Arabia Berri 1964 10 - 25
24 Iraq Rumalia N & S 1953 22
25 Saudia Arabia Manifa 1957 17
26 Iraq Kirkuk 1927 16
27 Iran Gashsaran 1928 12 - 15
28 Iran Marun 1963 12 - 14
29 Iran Agha Jari 1937 6 - 14
Source: AAPG, OGJ, EIA
30 Saudia Arabia Zuluf 1965 12 - 14
31 Alska Prundhoe Bay 1969 © Hassan Harraz 13 2016 7
Where are the giant fields?

World,s Largest Undeveloped Oil Fields
The much of the Middle East's undeveloped conventional oil reserves, is heavy,
viscous, and contaminated with sulfur and metals to the point of being unusable.9
Ten countries in the
Middle East account for
only 3.4% of the area but
contain 48% of world’s
known oil reserves and
38% of natural gas
reserves.
Despite decades of
exploration worldwide,
we have not found
‘another Middle East.’

THE CRITICAL IMPORTANCE OF GIANT FIELDS
Saudi Arabia has over 300 recognized reservoirs

but
~90% of its oil comes from the five super giant
fields discovered between 1940 and 1965.
Since the 1970s there haven't been new discoveries
of giant fields.
Saudi Arabia's Ghawar Field
 Discovered in 1948, Ghawar is the world's biggest oil field, 174 miles in length and
16 miles across and encompasses 1.3 million acres.
 Current estimates, for cumulative oil production are 55 billion barrels.
 Average production for the last 10 years is five million barrels per day.
 Ghawar accounts for more than one-half of all oil production in Saudi Arabia

World's largest oil field – the Ghawar oil
field, Saudi Arabia,

Kuwait Oil and Gas Fields
The Great Burgan field in the south-west part of Kuwait has 14
gathering centres for the oil produced from the giant field.

Iraqi-oil-fields
• Iraq has the
world's 3rd
largest proven
petroleum
reserves and
has historically
been the
second largest
oil producing
country in the
world

Kurdistan’s vast reserves draw oil majors
The Kurdistan Regional Government
(KRG) sees production from the region,
now ~200,000 barrels a day, rising to
1mb/d by 2015 and 2mb/d by 2019.
That has made it Big Oil’s hottest real
estate.
Its largest oilfields – Tawke, Taq Taq and
Shaikan – have become household
names in the industry.
“Kurdistan is the oil exploration
capital of the world,”
says Tony Hayward, the former chief
executive of BP, now chief executive
of Genel Energy, the largest
independent oil producer in the region.
Exxon’s decision to enter the region in
2011 was a turning point,
with Chevron, Total and Gazprom followi
ng in its wake.

Iraq oil resource

Iran's largest oil fields

Arctic (or Polar) Oil

1.2) Arctic (or Polar) Oil Prospective Resources
 Arctic (or Polar) Oil:
 refers to the oil reserves along the polar circle.
 It is extracted mainly in Alaska and Siberia and also requires complicated
techniques.
 A 2008 USGS estimates that areas north of the Arctic Circle have 90 billion barrels
(1.4×1010 m3) of undiscovered, technically recoverable oil and 44 billion barrels
(7.0×109 m3) of natural gas liquids in 25 geologically defined areas thought to have
potential for petroleum.
 This represented 13% of the expected undiscovered oil in the
world.
 More than 70% of the mean undiscovered oil resources was estimated to occur in five
provinces: Arctic Alaska, Amerasia Basin, East Greenland Rift Basins, East Barents
Basins, and West Greenland–East Canada.
 It was further estimated that approximately 84% of the oil and gas would occur
offshore.
 The USGS did not consider economic factors such as the effects of permanent
sea ice or oceanic water depth in its assessment of undiscovered oil and gas
resources. This assessment was lower than a 2000 survey, which had
included lands south of the Arctic Circle.

Arctic yet-to-find
Source: United States Geological Survey, 2008
Arctic: unexplored rock volumes of the ice-bound offshore…..?

 Countries contending for
Arctic Ocean Drilling &
Shipping Rights:
• Canada
• Denmark
• Russia
• Finland
• USA
Russia staking its claim:

 Russia petitioned UN to extend continental shelf - seeking exclusive
exploration rights.
 2007, Russia planted a flag on the extreme edge of its continental shelf,
under the North Pole.
A Iced Rig Petroleum

Challenges for activity in the Arctic
 Considerations for sustained industry activity:
Lomonosov Ridge, 2004
 Commercial
 Technological
 Operational safety
 Regulatory
 Ecological
 Cultural/socio-economical
 Reputational
 Security
 Risks presented by future industry activity: Image courtesy of Per Frejvall, Arctic Marine Solutions
 Ice management;
 Spill response;
 Communities;
 Reputation; and
 Environmental impact.

1.3) Deepwater Oil Prospective Resources
Deepwater oil:
 Refers to underwater oil reserves from a water depth of 500 m.
 Pressures in excess of 20k psi (Thousand pounds per square inch).
 Deeper reservoirs in existing provinces.
 The outer margins (‘medial and distal fans’) of deltas
 Its recovery is technically very complex and expensive.
Future challenges and technology trends:
 Striving for the perfect seismic image
 Management of pressures in excess of 20k psi (Thousand pounds per
square inch).
 Transformation of flow rates from conventionals.

Ca. 1500 Exploration wells
Ca. 120 basins tested
Ca. 30 with discoveries
Ca. 20 w. economic disc.
GoM
Niger Delta
Lwr. Congo
Campos
Failure
Uneconomic Success
Economic Success
Data based on those of IHS Energy Deepwater = >500m
Exploration Deepwater Basins: Success and Failure

2) UNCONVENTIONAL CRUDE OIL RESERVOIRS
 Unconventional oil resources are technically more difficult to extract and more expensive to recover. The term
unconventional refers not only to the geological formation and characteristics of the deposits but also to the technical
realization of ecologically acceptable and economical usage.
Unconventional oil resources are greater than conventional

ones.
Unconventional sources are not counted as
part of oil reserves.
 Unconventional Oil sources include:
 Bitumen
 Oil sand
 Oil shale
 Gas shale
 Coal liquefaction (CTL) or Gas to liquids (GTL)
 Heavy oil and bitumen are the most important in resource terms and are dominated by Venezuela and Canada,
respectively.
 As conventional oil becomes less available, it can be replaced with production of liquids from heavy crude oil, oil shale, oil
sands, ultra-heavy oils, gas-to-liquids (GTL) technologies, coal-to-liquids (CTL) technologies, and biofuel technologies.
 The resource base is very large and it will become an important part of future supply.
BUT
 There are large monetary and environmental costs involved and the rate of growth relative to the demand is limited.
 A final classification is unconventional resources. This classification includes petroleum accumulations that require
specialized technology to extract, as opposed to wells, in addition to significant processing and investment prior to sales.

2) UNCONVENTIONAL OIL …..(cont.)
The three major unconventional oil sources being considered for large-scale production are the:
i) Extra heavy oil (Tar sands) in the Orinoco Belt of Venezuela,
Ii) Athabasca Oil Sands in the Western Canadian Sedimentary Basin, and
iii) Oil shales of the Green River Formation in Colorado, Utah, and Wyoming in the United
States.
The major unconventional oil sources being considered for large-scale production are the Athabasca
Oil Sands in the Western Canadian Sedimentary Basin. The Athabasca Deposit in Alberta- Canada’s
contains 1.75 trillion barrels, or about half of the world’s proven oil reserves…!
In October 2009, the USGS updated the Orinoco tar sands (Venezuela) recoverable "mean value" to 513
billion barrels (8.16×1010 m3), with a 90% chance of being within the range of 380-652 billion barrels
(103.7×109 m3), making this area "one of the world's largest recoverable oil accumulations".
 "Canada's oil sands will not prevent peak oil," although production could reach 5,000,000 bb/d (790,000
m3/d) by 2030 in a "crash program" development effort.
These resource occurrences, in the Western Hemisphere, are approximately equal to the Identified
Reserves of conventional crude oil accredited to the Middle East……!.!.!
"Authorities familiar with the resources” believe that the world's ultimate reserves of unconventional
oil are several times as large as those of conventional oil and will be highly profitable for
companies as a result of higher prices in the 21st century.
Despite the large quantities of oil available in unconventional sources
These unconventional sources are more labour and resource intensive to produce, however,
requiring extra energy to refine, resulting in higher production costs and up to three times more
greenhouse gas emissions per barrel (or barrel equivalent).
Moreover, oil extracted from these sources typically contains contaminants such as sulfur and heavy
metals that are energy-intensive to extract and can leave tailings, ponds containing hydrocarbon sludge,
in some cases.

 Oil shale is an inorganic sedimentary rock such as shale or marl, that contains a solid organic compound known as
kerogen, a waxy oil precursor that has not yet been transformed into crude oil by the high pressures and temperatures
caused by deep burial.
 Oil shale is a misnomer because kerogen isn't crude oil, and the rock holding the kerogen often isn't even shale.
 Since it is close to the surface rather than buried deep in the earth, the shale or marl is typically mined, crushed, and
retorted, producing synthetic oil from the kerogen.
 Its net energy yield is much lower than conventional oil, so much so that estimates of the net energy yield of shale
discoveries are considered extremely unreliable.
 Oil sands are unconsolidated and stone deposits containing large amounts of neither very viscous crude bitumen nor
extra-heavy crude oil that can be recovered by surface mining or by in-situ oil wells using steam injection or other
techniques. It can be liquefied by upgrading, blending with diluent, or by heating; and then processed by a conventional
oil refinery. The recovery process requires advanced technology but is more efficient than that of oil shale.
 Heavy crude oil is oil denser than 17.5ºAPI gravity but less dense than 10º API (that of water), while extra-heavy crude
oil is denser than water. Hence the distinction between heavy oil and extra-heavy oil (or bitumen) is that in general the
former fluid floats on water and the latter sinks. Its production rate is limited by technical factors rather than by the
quantity available of the resource.
Bitumen is another type of crude oil

Properties fall on a continuum
Less light components
More residual and carbon

TAR SANDS: The unconventional oil sources being considered for large-scale
production are the Extra heavy oil (Tar sands) in the Orinoco Belt of Venezuela.
 In October 2009, the USGS updated the Orinoco tar sands (Venezuela)
recoverable "mean value" to 513 billion barrels (8.16×1010 m3), with a 90%
chance of being within the range of 380-652 billion barrels (103.7×109 m3),
making this area "one of the world's largest recoverable oil accumulations".
 Higher oil prices and new technology mean unconventional oil deposits are
now economically viable (e.g. Tar Sands)
NASA
i.treehugger.com/files/canada-tar-sands-01.jpg

7 trillion bbl Oil-in-Place
Figure Resource Type and Distribution

Coal Liquefaction (or Gas to liquids; or Synthetic sources; or Synthetic fuel)
 Synthetic sources or Synthetic fuel
 Productions are liquid hydrocarbons that are synthesised from the
conversion of coal or natural gas.
 Currently, two companies SASOL and Shell, have synthetic oil
technology proven to work on a commercial scale:
 Sasol's primary business is based on CTL (coal-to-liquid) and GTL
(natural gas-to-liquid) technology, producing US$4.40 billion in
revenues.
 Shell has used these processes to recycle wasteflare gas (usually
burnt off at oil wells and refineries) into usable synthetic oil.
 Thermal depolymerisation could be used to manufacture oil indefinitely, out of garbage,
sewage, and agricultural waste. The cost of the process was $15 per barrel.
 Hydrogen (possibly produced using hot fluid from nuclear reactors to split water in to
hydrogen and oxygen) in combination with sequestered CO2 could be used to produce
methanol (CH3OH), which could then be converted into gasoline. Capital and operational
costs were uncertain mostly because the costs associated with sequestering CO2 are
unknown. Another problem is that an energy source will be required for both carbon
capture and water splitting processes.
GAS

3) GAS
 Natural Gas:
 is a mixture of 50-90% methane (CH4) by volume; contains smaller amounts of ethane,
propane, butane and toxic hydrogen sulfide.
 Either Conventional natural gas or Unconventional deposits.
 Gas Hydrates: an ice-like material that occurs in underground deposits (globally).
 Liquefied Petroleum Gas (LPG): propane and butane are liquefied and removed from natural gas
fields. Stored in pressurized tanks.
Conventional gas Unconventional gas

Accumulations in medium to highly Deposits of natural gas found in relatively
porous reservoirs with sufficient impermeable rock formations-Tight sand and
permeability to allow gas to flow to coal beds.
producing well. Include coal beds, shale rock, deep deposits
lies above most reservoirs of crude oil of tight sands and deep zones that contain
Pressure regime tends to moves gas natural gas dissolved in hot water.
toward producing well (i.e., natural flow). To get resources out of the ground, artificial
pathways (fractures) have to be created.
Key technologies are horizontal drilling and
hydraulic fracturing techniques.
Need much higher number of extracting well
Types of Natural Gas Plays

Where is the world’s natural gas?
1)Russia and Kazakhstan (40%)
2)Iran (15%)
3)Qatar (5%)
4)United States
5)Saudi Arabia
6)Turkmenistan
7)UAE
8)Venezuela
9)Nigeria
10)China
11)Algeria Proved Natural Gas Reserves, 2015
When it comes to natural gas proved reserves the Middle East and Europe
& Eurasia region account for 75% of whole world’s reserves.
In fact, 40% of the world’s natural or associated gas reserves currently
identified as remaining to be produced, representing over 2600 tcf, are sour,
with both H2S and CO2 present most of the time.
Among these sour reserves, >350 tcf contain H2S in excess of 10%, and
almost 700 tcf contain over 10% CO2 .

3.1) Natural Gas Cost Structure
For oil the most important cost component is field development. For gas it is transportation.
Natural gas is transported:
 In gaseous form by gas pipelines
 In liquefied form in LNG carriers
Liquefied Natural Gas (LNG) - natural gas is converted at a very low temperature (-184oC)
Methane liquefies under atmospheric pressure at -161,5 C°. This is Liquefied Natural Gas
(LNG).
Pipeline advantage:
The cost of a pipeline is directly proportional to the distance covered
It is also proportional to the diameter, but volume transported is proportional to the square of
diameter: the larger the pipe, the lower the cost per cubic meter
It is also a function of “terrain”: overland or underwater, difficult terrains etc.
Liquefied natural gas (LNG) advantage:

A significant share of the gas produced is burned to liquefy the rest – independently of
distance.
Distance influences the number of required carriers (ships) – but cost increases less than w.
pipeline.
For long sea passages, LNG is the sole alternative.

Natural Gas Resource and Quality Types

Crude Oil Vs. Natural Gas
Advantages Disadvantages
1) Cheaper than Oil. 1) Releases CO2 when burned
2) World reserves : >125 years. 2) When processed, H2S and SO2 are
3) Easily transported over land (pipeline). released into the atmosphere.
4) High net energy yield. 3) Shipped across ocean as highly explosive
5) Easier to process than oil. LNG.
6) Easily transported by pipeline. 4) Must be converted to LNG before it can
7) Can be used to transport vehicles. be shipped (expensive and dangerous).
8) Good fuel for fuel cells and gas turbines. 5) Conversion to LNG reduces net energy
9) Can be used in highly efficient fuel cells. yield by one-fourth.
10) Low cost (with huge subsidies) 6) Methane (a greenhouse gas) can leak
11) Moderate environmental impact: from pipelines
i) Low land use. 7) Can leak into the atmosphere; methane
ii) Produces less air pollution than other fossil is a greenhouse gas that is more potent
fuels (i.e., Less air pollution than other fossil than CO2.
fuels).
iii) Lower CO2 emissions than other fossil fuels 8) Sometimes burned off and wasted at
(i.e., Produces less CO2 than coal or oil). wells because of low price
iv) Extracting natural gas damages the
environment much less that either coal or
uranium ore.

4) WORLD CRUDE OIL RESERVES
65.4
63.7 20.6 (6%)
(6%) (2%)
44.0
675.7
(4%)
(66%)
74.9
(7%)
89.5
(9%)
thousand million barrels
Country Proved Oil Reserves %

North America 63.7 6.16  Central and S. America is
South & Central America 89.5 8.66 mostly Venezuela
Europe 20.6 1.99
Africa 74.9 7.25
 Eurasia is mostly Russia
Former Soviet Union 65.4 6.33  Africa is mostly Libya and
Asia & Pacific 44.0 4.26 Nigeria
Middle East 675.7 65.36
There are two umbrella terms given to petroleum:
i) Conventional oil and
ii) Unconventional oil.
Total World Oil Reserves

Worldwide Hydrocarbon Resources (BBOE)

Thousand Barrels/Day
Figure 5: World Crude Production by Quality

Crude Oil Proved Reserves, January 2015
World Oil Reserves January 2015:

296
Total 1201.332 billion barrels
266
172
158
144
102
Largest proved reserves holders of crude oil: The U.S. is only the 11th largest holder of
crude oil reserves (33.4 billion barrels) in the world with only 19% of Canada's reserves
and 12% of Saudi ...

Summary of Proven Reserve Data as of 2015
Reserves Annual Production
— Country
(109bbl) (109m3) (106bbl/d) (103m3/d)
1 Venezuela 296.5 47.14 2.1 330
2 Saudi Arabia 265.4 42.20 8.9 1,410
3 Canada 175 27.8 2.7 430
4 Iran 151.2 24.04 4.1 650
5 Iraq 143.1 22.75 2.4 380
6 Kuwait 101.5 16.14 2.3 370
7 United Arab Emirates 97.8 15.55 2.4 380
8 Russia 80 13 10 1,600
9 Libya 47 7.5 1.7 270
10 Nigeria 37 5.9 2.5 400
11 Kazakhstan 30 4.8 1.5 240
12 Qatar 25.41 4.040 1.1 170
13 China 25.4 4.04 4.1 650
14 United States 25.4 4.0 7 1,100
15 Angola 13.5 2.15 1.9 300
16 Algeria 13.42 2.134 1.7 270
17 Brazil 13.2 2.10 2.1 330
Total of top seventeen reserves 1541 245.3 58.5 9280

 The estimated world proved reserves of crude petroleum were 1.6 billion barrels (As of January
2016).
 Venezuela with its heavy, sour crude holds the largest share of the world's petroleum reserves at 18%
of the total, as a result of recent reserves identified in this country. Other countries with the biggest
crude oil reserves are Saudi Arabia (16.2%), Canada (10.6%), Iran (9.4%) and Iraq (9.6%).
 “After more than 100 years of exploration in >75% of the potential oil bearing sedimentary areas,
including all of the largest and most accessible ones, we have found only 7 major provinces that
contain more oil than the world used in a single year in the peak consumption years of the 1970’s.”
 The Main Producers: OPEC …. OPEC currently accounts for 81% of total world oil reserves (1206 bbl, 2013).
 Non-OPEC…Non-OPEC currently accounts for 19% of total world oil reserves (284 bbl, 2013).

 The Non-OPEC producers are divided into: the Organization for Economic Co-operation and Development
(OECD), and the Commonwealth of Independent States (CIS):
 OECD produces 24% of the world’s oil supply, or 21 mbl/d. Within OCED, the biggest single
producer is the USA, but other major players include: Mexico, Canada, and the UK.
 CIS supply a further 15% of the global production. On a regional basis, the Middle East
accounts for nearly 65.36% of the world's reserves. Central and South America is second
with 8.66%, following recent reserves identified in Brazil and Venezuela, and North
America is third with 6.16% .
 This trend can be seen by looking at the history of crude oil production, which is now extending
over more than 150 years :
 Virtually all the world's largest oil fields were all discovered more than 50 years ago;
 Since the 1960s, annual oil discoveries tend to decrease;
 Since 1980, annual consumption has exceeded annual new discoveries;
 Till this day more than 47,500 oil fields have been found, but the 400 largest Oil fields
(1%) contain more than 75% of all oil ever discovered.

4.2.1)Reserves
By Country By Company
Source: BP Statistical Review
Total > 2.7 Trillion Barrels of Oil Equivalent

4.2.2) World Proven Crude Oil Reserves
 The International Energy Agency (IEA) estimates that 70% of the world’s remaining oil
reserves consist of heavy, high sulfur crude. Moreover, there is a common tendency in
all big discoveries found in the last 30 years. The crude from these new oil fields tends
to be heavy, difficult to extract, with high sulfur content. One of the reasons of crude
oil quality deterioration is depletion of production from conventional, commonly sweet
reservoirs.
 Majority of global reserves are light/medium sour.
 Most quoted benchmark prices are light sweet crudes:
 WTI, Western Hemisphere.and Brent (North Sea Crude) Europe.
 Historical trend shows global crude supply becoming heavier and more sour.
Quality of Crude Oil Reserves

(Source: Oil & Gas Journal, Company Information)

Oil…: What's left?
© Hassan Harraz 2016

57
China's oil fears over South Sudan

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WORLD PETROLEUM RESERVES

Presentation · February 2016

Economic Petroleum View project

Egyptian Ore Deposits View project

The user has requested enhancement of the downloaded file.

Prof. Dr. H.Z. Harraz Presentation

1) CONVENTIONAL CRUDE OIL RESERVOIRS (i.e., CONVENTIONAL OIL)

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ii) Unconventional oil reservoirs.

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Källa: AAPG, OGJ, Simmons & Company International

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Saudi Arabia has over 300 recognized reservoirs

Saudi Arabia's Ghawar Field

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Source: United States Geological Survey, 2008

Arctic: unexplored rock volumes of the ice-bound offshore…..?

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Russia staking its claim:

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Exploration Deepwater Basins: Success and Failure

Unconventional oil resources are greater than conventional

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Bitumen is another type of crude oil

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Figure Resource Type and Distribution

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Conventional gas Unconventional gas

Types of Natural Gas Plays

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Liquefied natural gas (LNG) advantage:

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thousand million barrels

Country Proved Oil Reserves %

Total World Oil Reserves

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Figure 5: World Crude Production by Quality

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World Oil Reserves January 2015:

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