Global energy security at risk as recoverable oil drops

Global recoverable oil is estimated at 1.57 trillion barrels, 9% down from last year.

Global energy security is at risk after the total recoverable oil declined by 9% to 1.57 trillion barrels since last year, Rystad Energy reported.

This is fewer by 152 billion barrels compared to the total recorded in 2021. Rystad Energy explained that recoverable oil refers to the industry’s “remaining technically recoverable crude oil and lease condensate.”

“While the drop in oil availability is positive news for the environment, it may threaten to further destabilize an already precarious energy landscape,” Per Magnus Nysveen, Rystad Energy’s head of analysis, said.

“Energy security is a matter of redundancy; we need more of everything to meet the growing demand for transport and any action to curb supply will quickly backfire on pump prices worldwide, including large producers such as the US.”

The drop in reserves was linked to the 30 billion barrels of oil produced last year, on top of a significant reduction in undiscovered resources of around 120 billion barrels.

Moreover, Rystad noted that of the 1.57 trillion barrels, only 1.2 trillion barrels will likely be economically viable.

In this light, Rystad updated its estimates for total undiscovered oil to 350 billion barrels from 1 trillion barrels in 2018.

“This downward revision is good news for carbon compliance but could have negative consequences for global energy security, particularly if electric vehicle adoption falls short of expectations,” Rystad also said.