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Saudi Aramco CEO says industry can add 1 trillion in reserves in 25 years
Last Update: 5:04 AM ET Sep 13, 2006
VIENNA (MarketWatch) -- The head of Saudi Arabian Oil Co., or Saudi Aramco (SOI.YY), said Wednesday technological improvements could add 1 trillion barrels of conventional oil reserves over the next 25 years.
"I'd like to challenge the industry to add 1 trillion (in conventional) reserves over the next 25 years," said Abdallah S. Jum'ah, president and chief executive of Saudi Aramco. "But I am confident.that we can meet that (target) because of technology advances," he told an industry conference here.
Jum'ah went further and said he believed a total of 4.5 trillion barrels in conventional and non-conventional oil, such as heavy - or high-sulfur crude, could be produced because of technology advances that allow for deeper and more efficient drilling. "This is an ambitious goal, but working together, I am confident our companies can and achieve that target," Jum'ah said.
"Our future energy needs...will depend on our ability to push the envelope of technology," he said.
Other technology advances such as seismic imaging have helped oil companies better pinpoint precise locations of hydrocarbons. Improved drilling techniques, like horizontal drilling, have also made it easier to improve the amount of oil extracted from oil fields.
Jum'ah was speaking on a panel discussing the role of technology in oil advances.
The oil industry globally has produced about 1 trillion barrels of oil over the past 100 years out of a current estimated 2.3 trillion barrels of economically recoverable conventional oil reserves, which are typically found in onshore areas.
Non-conventional oil, such as heavy crude found in places like Canada and Venezuela, has the potential for adding upwards of 2 trillion barrels in oil reserves.
Many oil analysts, however, are skeptical that high-cost non-conventional reserves, like heavy oil extracted from tar sands, will be economical for companies long-term. These reserves are more difficult to extract and require far more rigorous processing in order for the oil to be broken down into fuel products, like gasoline.
Jum'ah warned that excessive environmental regulations that block access to potential oil fields would hamper efforts to boost oil supplies in the future. "(Technology advances) mean nothing without access to fields," he said.
He said said the potential 4.5 trillion barrels in conventional and non-conventional oil reserves equated to 140 years of supply, based on current demand forecasts.
Last Update: 5:04 AM ET Sep 13, 2006
VIENNA (MarketWatch) -- The head of Saudi Arabian Oil Co., or Saudi Aramco (SOI.YY), said Wednesday technological improvements could add 1 trillion barrels of conventional oil reserves over the next 25 years.
"I'd like to challenge the industry to add 1 trillion (in conventional) reserves over the next 25 years," said Abdallah S. Jum'ah, president and chief executive of Saudi Aramco. "But I am confident.that we can meet that (target) because of technology advances," he told an industry conference here.
Jum'ah went further and said he believed a total of 4.5 trillion barrels in conventional and non-conventional oil, such as heavy - or high-sulfur crude, could be produced because of technology advances that allow for deeper and more efficient drilling. "This is an ambitious goal, but working together, I am confident our companies can and achieve that target," Jum'ah said.
"Our future energy needs...will depend on our ability to push the envelope of technology," he said.
Other technology advances such as seismic imaging have helped oil companies better pinpoint precise locations of hydrocarbons. Improved drilling techniques, like horizontal drilling, have also made it easier to improve the amount of oil extracted from oil fields.
Jum'ah was speaking on a panel discussing the role of technology in oil advances.
The oil industry globally has produced about 1 trillion barrels of oil over the past 100 years out of a current estimated 2.3 trillion barrels of economically recoverable conventional oil reserves, which are typically found in onshore areas.
Non-conventional oil, such as heavy crude found in places like Canada and Venezuela, has the potential for adding upwards of 2 trillion barrels in oil reserves.
Many oil analysts, however, are skeptical that high-cost non-conventional reserves, like heavy oil extracted from tar sands, will be economical for companies long-term. These reserves are more difficult to extract and require far more rigorous processing in order for the oil to be broken down into fuel products, like gasoline.
Jum'ah warned that excessive environmental regulations that block access to potential oil fields would hamper efforts to boost oil supplies in the future. "(Technology advances) mean nothing without access to fields," he said.
He said said the potential 4.5 trillion barrels in conventional and non-conventional oil reserves equated to 140 years of supply, based on current demand forecasts.
