US in the lead

US in the lead

The US now has the largest oil reserves in the world, according to Rystad Energy.

The United States currently holds 293 billion barrels of recoverable oil resources.

This is 20 billion barrels more than Saudi Arabia and almost 100 billion barrels more than Russia, according to Rystad Energy.

Tight oil plays in the Permian Basin in Texas and New Mexico now hold 100 billion barrels of recoverable oil resources, according to Rystad Energy’s analysis.

Suppressed oil

Rystad Energy’s report also confirms that global production of petroleum liquids and biofuels are on track to pass 100 million barrels per day (bpd) this year, representing an increase of about 2 million bpd from 2018.

“About 5 million barrels per day of global oil production capacity is currently idled for several reasons – less infill drilling offshore, sanctions on Iran, continued instability in Libya, economic collapse in Venezuela, pillage and sabotage in Nigeria and voluntary cuts by Opec and its allies,” says Paola Rodriguez-Masieu, Oil Market Analyst at Rystad Energy.

The gradual come-back of this suppressed oil production and resilient growth from US tight oil, combined with reduced oil demand due to trade conflicts, is forecasted to put a firm lid on oil prices for a couple of years, according to oil market analysts at Rystad Energy.