The Iranian government estimated the country's reserves to be 137.5 billion barrels of oil at the end of 2005, up 3.6 percent on December 2004 because improved technology would allow increased recovery, BP said.
World oil reserves grow, but only just: BP - Boston.com
The world is not running low on oil reserves, BP Plc
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The amount of recoverable oil known to be in the ground at the end of 2005 was higher than a year earlier, BP said in its Statistical Review of World Energy, continuing the trend that the oil industry each year finds more oil than it produces.
"There isn't a shortage of reserves," BP Chief Executive John Browne said at the launch of the review.
Browne said the fact that only a small fraction of oil in reservoirs is currently considered recoverable gave plenty of headroom to increase the amount of oil deemed exploitable.
"Improvement in recovery factors, notably from the techniques of drilling and the techniques of enhanced oil recovery, lead us to believe that these will continue to grow," he said.
Recent record high oil prices and the depletion of aging fields in the United States and the North Sea have raised concerns about future oil supplies.
While BP said its data, compiled from official figures from governments, should ease such concerns, the figures also show that it is becoming harder to add new reserves.
The rate at which oil reserves are growing has slowed in recent years. Reserves grew by only 0.55 percent in 2005, compared to an average 3 percent per year in 1985-1995.
This echoes data from the big western oil majors which in recent years have struggled to match production with new reserves additions.
Oil men say it is becoming tougher to find new big fields, and to raise production, while demand keeps on rising.
IRAN, RUSSIA CHEER, MEXICO DISAPPOINTS
This led the Chief Executive of France's Total
Browne refused to give a date for when he expected oil production to peak and suggested that the peak could be caused by demand rather than supply tailing off.
The improvement in the global reserves balance sheet was partly due to hikes in estimates of oil resources in Iran and Russia, offset by a sharp cuts by Mexico.
The Iranian government estimated the country's reserves to be 137.5 billion barrels of oil at the end of 2005, up 3.6 percent on December 2004 because improved technology would allow increased recovery, BP said.
Russia's reserves rose 2.8 percent to 74.4 billion barrels. BP did not offer a reason for this.
Mexico slashed its reserves figures by 7.4 percent to 13.7 billion barrels. BP's Chief Economist Peter Davies said this was due to the adoption of more stringent reserves accounting standards.
BP said global reserves of oil were 1.2 trillion barrels, equivalent to almost 41 years supply at current production rates. Natural gas reserves were estimated at 6,348 trillion cubic feet or 180 trillion cubic metres, equivalent to 65 years supply.
The Review is available through http://www.bp.com/productlanding.do?categoryId=91&;contentId=7017 990
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