A Picture Of Crude Oil Reserves Tell Me A Thousand Words
May 26, 2020 Leave a comment
What is this Crude Oil Reserves graphic saying to me?
It tells me that Australia is a minnow and it’s more of a LNG nation.
It tells me why integrated European and American oil companies enter joint ventures in foreign lands, ’cause that’s where the oil is.
And the U.S. is playing an interesting game of being the worlds largest oil producer against reserves that don’t suggest that status being sustainable.
Prior to the March 2020 collapse in oil prices, the U.S. was pumping a world leading 15 million barrels per day.
If the U.S. reduces daily production to let’s say 12 million barrels (not because Trump thinks he can force privatised companies to do so but more so relating to the global supply glut), then when dividend into their reserves of 37 Giga barrels, the United States will have 3,083 days or 8.4 years of reserves left.
That’s acute enough to create tension across politics and the oil price.
Incidentally, Saudi’s daily production is 12 million barrels.
– May 26, 2020, by Rob Zdravevski
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