Offshore Petroleum Developments and Resources

Abstract

Over the next 20 years the world will consume an estimated 500 billion bbl of oil - about 110 percent of the current proved reserves. To replace the oil consumed and maintain a safe inventory, the industry will look more and more to offshore exploration and development. And in this development there will be nations, previously little involved in petroleum, that will prosper because of their coastlines. prosper because of their coastlines. Current Status of the Offshore Petroleum Industry Petroleum Industry The worldwide spread of interest in the search for petroleum offshore in recent years has been petroleum offshore in recent years has been extraordinary. This could only have resulted from outstanding exploration success. Ten years ago there were only three or four countries and about five companies with offshore petroleum interests. Today, hundreds of companies are exploring the shelves of 75 countries, and already 28 countries are producing or are about to produce subsea oil and gas. Between 9,000 and 10,000 wells have been drilled offshore, and production is coming from as far as 70 miles out from the coast and in water as deep as 285 ft. Current world offshore production of about 6.5 million BOPD is 17 percent of a total daily output of 38 million bbl. Ten years from now an offshore yield of 25 million B/D is anticipated one-third of a world output of 75 million bbl daily. And subsea oil reserves are now 21 percent of a total world reserve of 430 billion bbl. A principal reason for the widespread exploration activity is the rapid growth in world demand for energy. The current annual increase in oil production is close to a billion barrels. It is greater than the annual output of Saudi Arabia or of Iran, two of the world's largest producing countries. This means that the addition of a volume of production each year at least the equivalent of a Saudi Arabia or an Iran is needed just to maintain the world's current year's supply position. At today's rate of increase, the consumption position. At today's rate of increase, the consumption of oil 20 years from now will be nearly four times that of today, and the use of petroleum gas will increase at an even greater rate.