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Global oil demand to 2050
Even in a net zero by 2050, the world needs to add more oil reserves
Taken from Equinor's 2020 Energy Perspectives Report. It shows even in their "Rebalance Case," which is based on the Paris Climate 2019 agreement, that by 2050 there is a cumulative supply gap of >260 B bls.
Data source. Equinor 2020 Energy Perspectives
Declining investment and less new field FIDs
Growing gap between supply and demand
Delays or cancelled planned project in 2020 as result of the oil price drop will take out 7 million barrels a day, (7% of current global demand) of planned production in the next decade.
Data Source Rystad Energy.
IOC's are not replacing their reserves
Reserves are replaced by new field development, acquisition or improved oil recoveryITS technology enables improved oil recovery from both existing and new fields, enabling IOCs to better manage their reserve base
Major IOC's reserves to production indices
Summary
Covid related oil price collapse resulted in the delay/cancellation of many field development FIDs
Cancelled & delayed projects will take out 7 million barrels of daily oil production in during the next decade
Supply v production estimates results in >260 Billion bls supply gap even in a net zero world by 2050
The supply could be filled by discovering and developing new reserves, however exploration and development investments are at low levels globally, which means realistically more oil needs to recovered from existing producing fields.
Conclusion
ITS patented technology can help fill that supply gap helping maintain energy resilience and security in the coming decades
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