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Petroleum industry

Oil Production in Non-OPEC Nations Declines in 2008, Despite Increased Spending

Strategic Insights

— 1 min read

Energy companies around the world have been investing heavily in developing new oil production capacity in recent years, but despite this, oil production in non-OPEC nations declined by 1.4% in 2008, the largest drop in 16 years. According to BP's 2009 statistical review, non-OPEC nations, which meet about 60% of global demand, saw a decrease of 610,000 barrels a day in oil production, while OPEC nations saw no increase in proven oil reserves and some even saw a slight decrease. The report highlights the challenges of finding new, economically recoverable oil supply and the limitations imposed by "above ground" barriers, such as lack of investment and government blockades.

Key Takeaways:

  • Non-OPEC nations, which meet about 60% of global demand, saw a decline in oil production of 1.4% in 2008, the largest drop in 16 years.
  • Despite record spending on new capacity, Saudi Arabia saw a slight decrease in proven oil reserves, from 264.2 billion barrels in 2007 to 264.1 billion barrels in 2008.
  • The world's total proven oil reserves fell slightly for the first time in 10 years in 2008, to 1.258 trillion barrels, enough to cover global consumption for several decades.
  • Coal consumption rose 3.1% in 2008, led by China, marking the sixth straight year of growth for the fuel.
  • Oil demand fell in 2008 by 0.6%, or 420,000 barrels a day, the largest drop in 26 years.
  • The decline in oil production in non-OPEC nations highlights the challenges of finding new, economically recoverable oil supply and the limitations imposed by "above ground" barriers.
  • BP has produced its annual statistical review for almost six decades, providing insights into the global oil market.

Statistics:

  • Non-OPEC oil production declined by 1.4% in 2008, a decrease of 610,000 barrels a day.
  • Oil demand fell by 0.6% in 2008, a decrease of 420,000 barrels a day.
  • Coal consumption rose 3.1% in 2008, led by China.
  • The world's total proven oil reserves fell to 1.258 trillion barrels in 2008.
  • Saudi Arabia's proven oil reserves decreased from 264.2 billion barrels in 2007 to 264.1 billion barrels in 2008.

Sources:

  • Dow Jones Commodities News via Comtex
  • BP's 2009 Statistical Review
  • Dow Jones Newswires
  • Spencer Swartz, Dow Jones Newswires

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