BP (ticker BP) has made an interesting update to its yearly review of energy statistics in regards to its global oil reserves estimate. BP raised its reserve estimate by 1.1% or 1,687.9 billion barrels, which is enough oil to last the world 53.3 years at the current production rate.
The overall cause for this surge in global oil reserves comes from the United States. America’s shale oil plays, the Bakken, Eagle Ford, and Permian Basin, are being unlocked through horizontal drilling technologies. The Spraberry/ Wolfcamp alone contain 75 billion barrels of recoverable oil and gas, originally estimated at 50 billion barrels. The Bakken and Eagle Ford’s recoverable reserve estimates also continue to grow. In 2010, the Eagle Ford shale was estimated at under 1 billion barrels, now estimated at 3.2 billion barrels.
New technologies and techniques, including closer spacing of wells, are providing a big boost to future reserve estimates. While BP, holds 53.3 years worth of oil, new shales plays continue to be discovered in the U.S., which indicates that we will not run out of oil anytime soon.
Thomas Hsaio, President of SuperGreen Solutions of the Mid-Atlantic Charlotte office, commented, “No matter how many years we have left in our oil reserve, we all know that fossil fuels are a limited resource. Although the fear of running out of oil is not an immediate concern, as the dangers of global warming caused by fossil fuel emissions continues to increase, we should all do our part to ensure a healthy environment.”