Venezuela overtakes Saudis to hold world's biggest oil reserves
Source: BI-ME with Bloomberg , Author: Posted by BI-ME staff
Posted: Thu June 14, 2012 8:10 pm
china wholesale market

INTERNATIONAL. Venezuela surpassed Saudi Arabia to become the world’s largest holder of proven oil reserves, a resource that President Hugo Chavez promises to tap if he gets re-elected in October.

The South American country’s deposits were at 296.5 billion barrels at the end of last year, data from BP Plc (BP/) show. Saudi Arabia held 265.4 billion barrels, BP said yesterday in its annual Statistical Review of World Energy. The 2010 estimate for Venezuela increased from 211.2 billion in the previous report.


Chavez wants to more than double the country’s oil- production capacity to 6 million barrels a day by 2019, according to a government plan released June 12. The world’s biggest oil-exporting nations faced a 15% slump in crude prices last month, the biggest decline since December 2008, on speculation Europe’s debt crisis would derail the global economic recovery.

Venezuelan Oil Minister Rafael Ramirez has said oil prices need to be higher than US$100 a barrel. The recent slump in crude is dangerous for producers, Ramirez said June 12 in Vienna, where the Organization of Petroleum Exporting Countries meets today to decide production quotas.

Brent futures rose 54 cents, or 0.6%, to US$97.67 a barrel on the ICE Futures Europe exchange at 1:10 p.m. in Singapore today.

Global reserves advanced to 1.65 trillion barrels at the end of last year, a 1.9% increase from a revised 1.62 trillion in 2010, BP said. Venezuela now holds 18 percent of the world’s reserves, according to BP data.

BP revised its estimates on reserves in part because the company publishes its report in June, before most governments issue their annual reserves figures, said Robert Wine, a BP spokesman. Last year’s record average oil price also had an effect, increasing the commercial viability of hard-to-reach deposits, he said.

Saudi Arabia now trails Venezuela with a 16 percent share of world proven oil reserves, according to the report. Canada ranks third with 175.2 billion barrels, or 11 percent of total, unchanged from the revised number for 2010.

Russia, the world’s biggest crude producer, boosted its deposits to 88.2 billion barrels from a revised 86.6 billion a year earlier, according to BP. Russia’s share of the total is 5.3%.

Reserves in Norway increased last year, snapping 11 years of declines, according to BP. The country’s deposits rose to 6.9 billion barrels, compared with a revised figure of 6.8 billion in 2010.

BP said the estimates in yesterday’s report are a combination of official sources, OPEC data and other third-party estimates. Deposits include gas condensates and natural-gas liquids, as well as crude.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: February 27, 2015
UAE. In S&P's view, the sharp drop in oil prices since mid-2014 is likely to lead to weakening economic, external, and fiscal profiles for the region, particularly for the GCC.
date:Posted: February 26, 2015
UAE. Collinson Latitude report calls for travel brands to reinvent loyalty schemes as they unveil a new breed of traveller who demand more choice and flexibility.
date:Posted: February 26, 2015
UAE. New report's findings are based on Deloitte Global's review of data from a Facebook-commissioned global survey of 10,500 people who use social media.
BAHRAIN. During an interview with Euromoney Conferences, John Sfakianakis the GCC Regional Director at Ashmore Group, said the milestone decision to liberalise the Saudi Tadawul Index is extremely significant as investors will be able to gain exposure to a formidable oil economy by investing in its market.
dhgate