OIL SUPPLY 219
approximately 1.24 billion barrels of proven oil reserves worldwide, 934.7 billion barrels (75.5%) of oil are located in the OPEC
countries, compared with 29.4 billion barrels (2.4%) in the United
States (BP, 2008).
The United States Geological Survey provides oil resources
estimates, which are different from proved reserves estimates. Oil
resources estimates are significantly higher because they estimate
the world's total oil resource base, rather than just what is now
proven to be economically producible. Estimates of the resource by
the United States Geological Survey base include past production
and current reserves, as well as the potential for future increases
in current conventional oil reserves (often referred to as reserves
growth) and the amount of estimated conventional oil that has
the potential to be added to these reserves. Estimates of reserves
growth and those resources that have the potential to be added
to oil reserves are important in determining when oil production
may peak.
However, the estimating of these potential future reserves is
complicated by the fact that many regions of the world have not
been fully explored and, as a result, there is limited information.
For example, in 2000, the United States Geological Survey provided a mean estimate of 732 billion barrels that have the potential
to be added as newly discovered conventional oil, with as much
as 25 percent from the Arctic, including Greenland, Northern
Canada, and the Russian portion of the Barents Sea. However, relatively little exploration has been done in this region, and there are
large portions of the world where the potential for oil production
exists, but where exploration has not been done. According to the
United States Geological Survey there is less uncertainty in regions
where wells have been drilled, but even in the United States, one
of the areas that has seen the greatest exploration, some areas have
not been fully explored, as illustrated by the recent discovery of a
potentially large oil field in the Gulf of Mexico.
Limited information on oil-producing regions worldwide
also leads the United States Geological Survey to base its estimate of reserves growth on how reserves estimates have grown
in the United States. However, some experts criticize this methodology; they believe such an estimate may be too high because
the United States experience overestimates increases in future
worldwide reserves. In contrast, EIA believes the estimate by the
United States Geological Survey estimate may be too low. In 2005,
approximately 1.24 billion barrels of proven oil reserves worldwide, 934.7 billion barrels (75.5%) of oil are located in the OPEC
countries, compared with 29.4 billion barrels (2.4%) in the United
States (BP, 2008).
The United States Geological Survey provides oil resources
estimates, which are different from proved reserves estimates. Oil
resources estimates are significantly higher because they estimate
the world's total oil resource base, rather than just what is now
proven to be economically producible. Estimates of the resource by
the United States Geological Survey base include past production
and current reserves, as well as the potential for future increases
in current conventional oil reserves (often referred to as reserves
growth) and the amount of estimated conventional oil that has
the potential to be added to these reserves. Estimates of reserves
growth and those resources that have the potential to be added
to oil reserves are important in determining when oil production
may peak.
However, the estimating of these potential future reserves is
complicated by the fact that many regions of the world have not
been fully explored and, as a result, there is limited information.
For example, in 2000, the United States Geological Survey provided a mean estimate of 732 billion barrels that have the potential
to be added as newly discovered conventional oil, with as much
as 25 percent from the Arctic, including Greenland, Northern
Canada, and the Russian portion of the Barents Sea. However, relatively little exploration has been done in this region, and there are
large portions of the world where the potential for oil production
exists, but where exploration has not been done. According to the
United States Geological Survey there is less uncertainty in regions
where wells have been drilled, but even in the United States, one
of the areas that has seen the greatest exploration, some areas have
not been fully explored, as illustrated by the recent discovery of a
potentially large oil field in the Gulf of Mexico.
Limited information on oil-producing regions worldwide
also leads the United States Geological Survey to base its estimate of reserves growth on how reserves estimates have grown
in the United States. However, some experts criticize this methodology; they believe such an estimate may be too high because
the United States experience overestimates increases in future
worldwide reserves. In contrast, EIA believes the estimate by the
United States Geological Survey estimate may be too low. In 2005,