This is out from Reuter's today:
London (Reuters) - World oil production fell by 0.2 per cent in 2007, the first decline since 2002, and proven oil reserves were flat, BP Plc said in an annual review released Wednesday.
Production fell by 130,000 bbls per day last year to 81.53 million bbls a day and reserves were essentially flat at 1.24 trillion bbls, London-based BP said in its 2008 Statistical Review of World Energy.
Ok, so reserves flat and production flat - so why ANWR?
Look below the fold:
"The defining feature of global energy markets remains high and volatile prices, reflecting a tight balance of supply and demand," said Tony Hayward, BP's chief executive, at the launch of the review.
"This has put issues such as energy security and alternative energies at the forefront of the political agenda worldwide."
Ok, but we still haven't gotten to ANWR. Oh, maybe this helps:
While the world has enough fossil fuel to support growing production, politics, barriers to entry and high taxes reduce the reserves accessible to firms such as BP, the company said.
"Declining oil production in the OECD highlights the fact that, while resources are not a constraint globally, the resources within reach of private investment by companies like BP are limited," said Hayward.
"When it comes to producing more oil, the problems are above ground, not below it. They are not geological, but political," he added.
Countries such as Venezuela and Russia are grabbing more cash and control from firms that work their oil and gas fields, a trend dubbed resource nationalism by some analysts.
At the same time, some of the world's largest reserves, such as those of Saudi Arabia, are off-limits to foreign investment. Sanctions, wars and violence have slowed progress in developing Iraq's oil industry.
So, let's recap.
- Other countries want to control their own resources, so we can't drill there;
- High taxes elsewhere mean we don't want to drill there (but note, China with a over $45/Bbl windfall profit tax is still a good place to drill);
- The US has screwed up the Middle East and made it dangerous so we don't want to drill there.
Ah, let's see - where are we safe, barely taxed at all and hell the government may never check to see if the royalties are even paid - I know, ANWR.
So, it must be about energy security and reducing gasoline prices in the US - not about where I would like to drill because everyone else is a meany.
Damn, it's tough to support a good meme when your employers .. er, I mean your contributors .. er , I mean those philanthropic oil companies keep telling the truth.
Late thought Maybe the US should consider the competitive cost of having capitalist companies extracting your resources and selling to the highest bidder versus national companies producing their resources and selling them internally at controlled prices.