Thursday, August 30, 2007

Without Oil Sands Reserves Would've Fallen Last Year

Global oil reserves up only 1% last year

CALGARY -- Record global oil and gas profits of US$243-billion and record spending of US$401-billion have resulted in a marginal 1% increase in world oil reserves last year -- all of it coming from a 1.9-billion-barrel addition from Canada's oilsands, according to a new study.

Without Canada's contribution, 228 public oil and gas companies active globally and included in the study would have collectively produced more oil than they found, John S. Herold, a U.S.-based independent petroleum research company, and Harrison Lovegrove & Co., a global oil and gas advisory firm, said in the 2007 Global Upstream Performance Review, released yesterday.


The challenges are heating up the debate over peak oil, the report says.

"Without expressing a position on the matter, we believe that the issue has become part of the industry's long-term planning," the study says.

"If the peak oil theory is correct, and a decline in world production is imminent, a company must choose among four alternatives -- try to become a dominant participant, find a niche operational talent, harvest assets or liquidate quickly."

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