Rystad Energy research shows a global increase of 5 billion barrels in recoverable oil resources in 2024, despite 30 billion barrels produced. Argentina’s Vaca Muerta play and Permian Delaware basin in Texas and New Mexico drive the increase, stabilizing global recoverable oil resources at 1.5 trillion barrels.

Historically, 1,572 billion barrels of crude oil were produced from 1900-2024. Proven oil reserves equal only 14 years of production. Future global oil demand may exceed supply, leading to high prices for producers. Energy transition and electrification of transport may reduce future oil demand, especially in China.

Rystad Energy predicts higher oil prices and new technologies will be needed for full extraction of oil resources. Capital constraints may hinder meeting rising oil demand, leading to high service prices and limited innovation. Future oil demand may not grow steeply towards 2050, with limited worst-case warming scenarios from IPCC.

If oil demand rises, global recoverable resources may not meet it, leading to a constrained economic environment. Rystad Energy expects limited growth in oil demand towards 2050. The company’s analysis suggests less CO2 emissions from fossil fuels compared to IPCC scenarios, with limited temperature rise and reduced CO2 emissions.

Rystad Energy foresees the need for another oil super-cycle in a world with flat or growing demand after 2030. This scenario would require increased frontier exploration, drilling success, and development of non-core shale plays globally. The future of oil demand hinges on innovation, technology, and balancing environmental concerns.

Read more at Yahoo Finance: Rystad Energy Reveals Surprising Oil Resource Trends