Connect with us

Hi, what are you looking for?

CleanTechnica
New figures published by the International Energy Agency show that global oil discoveries fell to a record low of only 2.4 billion barrels in 2016, while sanctioned projects fell to their lowest levels in over 70 years.

Fossil Fuels

Global Oil Discoveries & Oil Projects Fall To Record Lows In 2016

New figures published by the International Energy Agency show that global oil discoveries fell to a record low of only 2.4 billion barrels in 2016, while sanctioned projects fell to their lowest levels in over 70 years.

New figures published by the International Energy Agency show that global oil discoveries fell to a record low of only 2.4 billion barrels in 2016, while sanctioned projects fell to their lowest levels in over 70 years.

The 2016 slowdown is due to reduced investment spending, driven by low oil prices, and represents a trend the IEA believes could continue throughout this year.

According to the International Energy Agency (IEA), oil discoveries declined to 2.4 billion barrels in 2016, compared to the previous average over the last 15 years of 9 billion barrels a year. Further, the IEA reported that “the volume of conventional resources sanctioned for development last year fell to 4.7 billion barrels,” a 30% drop over the previous year’s number, with the number of projects receiving final investment decision falling to the lowest levels seen since the 1940s — a time when, you maybe remember, the world was either in the midst of a World War or recovering from one. The total global oil output reached 85 million barrels per day (MB/d), made up of 69 MB/d from conventional oil production, 6.5 MB/d from liquids production from US shale, and the rest coming from natural gas liquids and unconventional sources such as oil sands and heavy oil.

The IEA lays the blame for these historic lows at the feet of decreased investment spending driven by low oil prices, and warn that this trend could continue into this year, especially when you take into account the “heightened geopolitical risks” in important producer countries such as Venezuela.

“Every new piece of evidence points to a two-speed oil market, with new activity at a historic low on the conventional side contrasted by remarkable growth in US shale production,” said Dr Fatih Birol, the IEA’s executive director. “The key question for the future of the oil market is for how long can a surge in US shale supplies make up for the slow pace of growth elsewhere in the oil sector.”

The IEA raises concerns that this current trend could lead to a tightening of global oil supplies. The IEA has predicted that global oil demand will increase by 1.2 MB/d a year over the next five years, and that “an extended period of sharply lower oil investment could lead to a tightening of supplies.”


Appreciate CleanTechnica’s originality? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.

 
 
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Written By

I'm a Christian, a nerd, a geek, and I believe that we're pretty quickly directing planet-Earth into hell in a handbasket! I also write for Fantasy Book Review (.co.uk), and can be found writing articles for a variety of other sites. Check me out at about.me for more.

Comments

#1 most loved electric vehicle, solar energy, and battery news & analysis site in the world.

 

Support our work today!

Advertisement

Power CleanTechnica: $3/Month

Tesla News Solar News EV News Data Reports

Advertisement

EV Sales Charts, Graphs, & Stats

Advertisement

Our Electric Car Driver Report

30 Electric Car Benefits

Tesla Model 3 Video

Renewable Energy 101 In Depth

solar power facts

Tesla News

EV Reviews

Home Efficiency

You May Also Like

Buildings

Originally published on RMI.org. By John Matson The world leaders of the Group of Seven, better known as G7, released a long communique following their recent meeting...

Climate Change

Originally published by Union of Concerned Scientists, The Equation. By Derrick Z. Jackson, UCS Fellow in climate and energy and the Center for Science and...

Clean Power

Courtesy of NRDC. By Sujatha Bergen & Susan Casey-Lefkowitz  President Biden is set to release his first detailed budget proposal. This blueprint for government spending is an...

Cars

Originally posted on EVANNEX. By Charles Morris In this day and age, just about everyone who’s paying attention — even stalwarts of the auto and oil...

Copyright © 2021 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.