World Energy Outlook

According to the BP Statistical Review of

World Energy, world oil consumption
(including crude oil, natural gas liquids,
biofuels, and other liquid fuels made from
coal and natural gas) reached 4,622
million tons of oil equivalent (4,470
million metric tons or 98.2 million barrels
per day) in 2017. Between 2007 and
2017, world oil consumption grew at an
average annual rate of 1.0 percent.
(COYNE, 2018)
United States being the largest oil
consumer, India is the world’s fourth
largest oil consumer. In 2017, India’s oil
consumption reached 222 million tons of
oil equivalent (4.7 million barrels per
day), accounting for 4.8 percent of the
world oil consumption. If India’s per
capita oil consumption continues to follow its historical trend in relation to per capita GDP, India’s per
capita oil consumption will rise to 335 kilograms of oil equivalent by 2050 (when India’s per capita GDP
is projected to rise to about 19,000 dollars).

Shares of Global Primary Energy Consumption by Fuel

Oil remains the world’s dominant fuel, making up just over a third of all energy consumed. In 2017 oil’s
market share declined slightly, following two years of growth. Coal’s market share fell to 27.6%, the lowest
level since 2004. Natural gas accounted for a record 23.4% of global primary energy consumption, while
renewable power hit a new high of 3.6%.

Current Oil & Gas Reserves Proved Oil Reserve 2017

Against the increasing difficulties in
global oil and gas exploration and more
and more complicated targets for
exploration, reserves and oil-gas fields
discovered still keep growing. Total
proved oil reserves estimated at the end of
2017 were 1696.6 thousand million
barrels which fell slightly by 0.5 billion
barrels (-0.03%) to 1696.6 billion barrels
which would be sufficient to meet 50.2
years of global production at 2017 levels.
Higher reserves in Venezuela (up by 1.4
billion barrels) were outweighed by
declines in Canada (-1.6 billion barrels)
 Proved Natural Gas
Reserve 2017 and smaller declines in a number of other
non-OPEC countries. OPEC countries
currently hold 71.8% of global proved
reserves.
Total proved natural gas reserve at the end of
2017 was 193.5 trillion cubic feet increased
0.21 % as compared to 2016. The reserve to
production ration was 52.6 which means that
current amount of reserve will last for 52.6
years, slightly higher than oil if produced at
the 2017 production rate. (BP, 2018)
India has 4.5 thousands of million barrels
proved oil reserve as of 2017 (0.26 % of total world reserve in 2017) and 1.2 trillion cubic meter of natural
gas proved reserve (0.62% of total world reserve in 2017).

Reserve to Production Ratio

R/P ratio for oil R/P ratio for gas

The R/P ratio for oil is increasing for oil is increasing for most of the countries as the reserves are found in
very difficult regions which are difficult produce (e.g. deep offshore region, arctic oil reserve, etc). Highly
sophisticated technologies are required not only for their production but also transporation which still do
not exist. But, the R/P ratio of natural gas is decreasing because of the presence of available technology,
LNG development and increasing market demand due to environmental concerns.
Top Oil and Gas Exploration Discoveries of 2017

** (Jones, 2018)

Forecast of Drilling Wells

Douglas Westwood forecast predicts
the number of wells need to be drilled
in coming years to meet the global
energy demand.
Douglas-Westwood predicts that a
35% increase in the number of wells
drilled per year will produce only a
17% increase in global hydrocarbon
production. (Matt Cook, 2014)
World Oil forecasts for 2017 are the
following: (World Oil, 2016)

• Global drilling should increase moderately to 39,742 wells, for a 6.1% pick-up.
• U.S. Gulf of Mexico E&P activity, focused on deepwater projects, will go up approximately 9.4%,
with increasing well depths and footage.

References
BP. (2018). BP Statistical Review of World Energy.

COYNE, D. (2018). World Oil 2018-2050: World Energy Annual Report (Part 2).

Jones, D. (2018). Top 10 Oil and Gas Exploration Discoveries of 2017. International Oil & Gas, Oil and Gas
Exploration.

Matt Cook, D.-W. (2014). 670,000+ wells to be drilled through 2020. Global and Regional Markets,
May/June.

World Oil. (2016). Forecast and Data 2017.