• 20 mins Is A Russia-Cuba Energy Deal In The Works?
  • 3 days Iraq Begins To Rebuild Largest Refinery
  • 3 days Canadian Producers Struggle To Find Transport Oil Cargo
  • 3 days Venezuela’s PDVSA Makes $539M Interest Payments On Bonds
  • 3 days China's CNPC Considers Taking Over South Pars Gas Field
  • 3 days BP To Invest $200 Million In Solar
  • 3 days Tesla Opens New Showroom In NYC
  • 3 days Petrobras CEO Hints At New Partner In Oil-Rich Campos Basin
  • 3 days Venezuela Sells Oil Refinery Stake To Cuba
  • 3 days Tesla Is “Headed For A Brick Wall”
  • 4 days Norwegian Pension Fund Set to Divest From Oil Sands and Coal Ventures
  • 4 days IEA: “2018 Might Not Be Quite So Happy For OPEC Producers”
  • 4 days Goldman Bullish On Oil Markets
  • 4 days OPEC Member Nigeria To Issue Africa’s First Sovereign Green Bond
  • 4 days Nigeria To Spend $1B Of Oil Money Fighting Boko Haram
  • 4 days Syria Aims To Begin Offshore Gas Exploration In 2019
  • 4 days Australian Watchdog Blocks BP Fuel Station Acquisition
  • 4 days Colombia Boosts Oil & Gas Investment
  • 5 days Environmentalists Rev Up Anti-Keystone XL Angst Amongst Landowners
  • 5 days Venezuelan Default Swap Bonds At 19.25 Cents On The Dollar
  • 5 days Aramco On The Hunt For IPO Global Coordinators
  • 5 days ADNOC Distribution Jumps 16% At Market Debut In UAE
  • 5 days India Feels the Pinch As Oil Prices Rise
  • 5 days Aramco Announces $40 Billion Investment Program
  • 5 days Top Insurer Axa To Exit Oil Sands
  • 6 days API Reports Huge Crude Draw
  • 6 days Venezuela “Can’t Even Write A Check For $21.5M Dollars.”
  • 6 days EIA Lowers 2018 Oil Demand Growth Estimates By 40,000 Bpd
  • 6 days Trump Set To Open Atlantic Coast To Oil, Gas Drilling
  • 6 days Norway’s Oil And Gas Investment To Drop For Fourth Consecutive Year
  • 6 days Saudis Plan To Hike Gasoline Prices By 80% In January
  • 6 days Exxon To Start Reporting On Climate Change Effect
  • 7 days US Geological Survey To Reevaluate Bakken Oil Reserves
  • 7 days Brazil Cuts Local Content Requirements to Attract Oil Investors
  • 7 days Forties Pipeline Could Remain Shuttered For Weeks
  • 7 days Desjardins Ends Energy Loan Moratorium
  • 7 days ADNOC Distribution IPO Valuation Could Be Lesson For Aramco
  • 7 days Russia May Turn To Cryptocurrencies For Oil Trade
  • 7 days Iraq-Iran Oil Swap Deal To Run For 1 Year
  • 10 days Venezuelan Crude Exports To U.S. Fall To 15-year Lows
Alt Text

The 5 Oil Factors To Watch In 2018

It has been the strongest…

Alt Text

Why Is Canadian Oil So Cheap?

Reduced pipeline capacity and bottlenecks…

Alt Text

Oil Prices Rise On Solid Chinese Demand

Oil prices rose on Friday…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

Saudis Overtake U.S. In Recoverable Oil Resources

Oil

Saudi Arabia has regained its top position ahead of the U.S. and Russia as the holder of the world’s biggest recoverable oil resources, as reduced tax rates for state giant Saudi Aramco have added 73 billion barrels of recoverable oil, Norway-based consultancy Rystad Energy said on Tuesday in its annual review of global recoverable oil resources.

Saudi Arabia’s recoverable oil resources are now estimated at 276 billion barrels, Rystad said, adding that the Kingdom’s “revised fiscal regime should incentivize more aggressive exploration and development drilling in the country.”

In March this year, Saudi Arabia cut the tax rate on Aramco to 50 percent from 85 percent. The high tax rate was one of the main reasons why international industry experts had not been valuing Aramco nearly as high as the US$2 trillion that Saudi officials have been claiming. Back then, Rystad Energy said that the tax rate cut was making Aramco more attractive to investors, and raises the valuation of its upstream portfolio by around US$1 trillion.

Rystad Energy’s annual review from last year showed that the U.S. had the world’s largest resources.

In this year’s review, Rystad estimates U.S. recoverable oil resources at 263 billion barrels, more than 50 percent of which comes from shale oil.

“Texas alone accounts for more than 80 billion barrels of recoverable oil. Of these volumes, 90% is located in shale formations, with the revitalized Permian basin laying claim to more than 50 billion barrels,” Rystad said on Tuesday.

But if natural gas liquids (NGLs) were included in the resource review, the U.S. would overtake Saudi Arabia by more than 50 billion of recoverable oil and petroleum liquids, the consultancy said. Related: Switching From Coal To Solar Could Save 50,000 Lives

Rystad Energy—which uses Society of Petroleum Engineers (SPE) standards in assessing reserves and resources—has estimated that total global recoverable oil resources are 2.2 trillion barrels, or 73 times the current annual production rate. Unconventional oil recovery accounts for 30 percent of global recoverable oil resources, while offshore represents 33 percent of the total.

According to Rystad Energy, as much as 40 percent of recoverable oil resources need the price of oil to be above US$80 per barrel in order to be profitable for oil companies.

“We are halfway in the buildup phase for US shale. We will see a new upcycle in the E&P business once US shale reaches this potential. Oil demand will also remain surprisingly robust over the next decade, despite new innovations to meet growing demand for individual transport in the Western Hemisphere,” Per Magnus Nysveen, Head of Analysis at Rystad Energy, said while commenting on the resources review.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment
  • Jonathan on June 20 2017 said:
    How is it possible for Saudi Arabia's reserves to be stable every year and then go up if they are pumping 10 million barrels/day?
  • TM on June 21 2017 said:
    Jonathan, the answer is simple: They are cooking the books and they have been doing that for decades. It's more than obvious for anyone with brains. People (investors) pretend to believe this, because it gives them a sense of security to go on with their "business as usual" strategy. But eventually, these theoretical reserves will get a reality check (And i'm not talking about a reality check from the typical consultancy company with interests). Anyways, it will be after the Aramco IPO, once they have collected money from the most foolish investors in the world. It will be interesting to see if there are still fools with lots of money to invest out there. I would assume that unwise investors went bankrupt during the last financial crisis, and the remaining ones are smart enough to see that they are being attracted into a sinking ship, but you never know. Let's get some popcorn and watch, because this is going to be a funny movie

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News