The US is the world's largest oil reserve!
Move over, According to CNNMoney, Saudi Arabia and Russia! The United States now has more untapped oil reserves than any other country on the planet.
According to a new report from consulting firm RystadEnergy, the United States has 264 billion barrels of recoverable oil, including existing fields, new projects, recent discoveries and undiscovered fields. Recoverable oil reserves are defined as the amount of oil that can be recovered economically using existing extraction techniques given known proven oil reserves.
The company notes that more than half of the untapped oil reserves in the United States are unconventional shale oil. The term "shale oil" refers to the oil resources contained in shale formations, which are mainly shale, and are previously inaccessible resources. Fracking and new technology have made shale oil a viable source of oil. The boom in shale oil production has reshaped the global energy landscape, propelling the US to the top of the world's ranking of producers.
In an interview with CNNMoney, Rystad CEO JarandRystad pointed out, "It's a revolution. Ten years ago, no one would have thought this would happen."
The report says the United States is likely to account for a larger share of global oil output in the future, especially as oil prices recover. Us output has been on a downward trajectory over the past year as oil prices have plunged to unprofitable lows for all but the best shale fields. But once the oil price rebounds, there will be plenty of oil to tap. Estimates published by Rystad show that Texas alone holds more than 60 billion barrels of shale oil, more than all of China's untapped oil reserves.
Thanks to the shale boom, America now has more oil than Russia. Russia has as much as 256 billion barrels of untapped oil, according to Rystad; Saudi Arabia's at 212 billion barrels; Canada's $167 billion; Iran's is 143 billion barrels; Brazil's is 120 billion barrels.
Rystad, based in Oslo, Norway, came to this conclusion after more than three years of analysis in more than 60,000 regions around the world. Rystad insists its figures for global oil reserves are more realistic than other conservative estimates.
Bp, a closely watched oil company, puts America's reserves at just $55 billion and Venezuela's at 301 billion barrels, for example. However, Rystad points out that BP is only testing official data, which is often collected from around the world and is often opaque. Oil reserves in many countries usually include undiscovered oil reserves. Venezuela's, for example, includes undiscovered oil reserves. Rystad also notes that some countries often exaggerate their oil reserves to gain a higher status in the ORGANIZATION of Petroleum Exporting Countries.
"The upside potential for U.S. oil reserves is somewhat greater," Rystad said.
The world's untapped oil reserves are 2.1 trillion barrels, 70 times current oil output of 30 billion barrels a year, the report said.
While this may sound like big data, Rystad says, it actually means that "the remaining available oil reserves on the planet are relatively limited."
It should be noted that global oil demand has continued to grow, even as the economy has struggled. Many expect that growth to stabilize and even accelerate when consumers in fast-growing economies buy more cars