Oil Production Trends
By Paul Homewood
We had a bit of a debate last week about the outlook for oil production and reserves.
I don’t hold any particularly strong views either way on this subject, but thought it might be helpful to look at past trends.
As we can see, annual growth in oil production has been pretty steady since the 1960s, with the exception of the small blip in 1975 and the bigger one that followed the global economic crisis in the early 1980s.
For completeness, we should also look at gas production as well, which shows a similar trend.
Interestingly, the BP Energy Outlook 2016 suggests that annual growth in oil and gas production in the next 20 years will continue at a similar rate to the past 20 years. (As a share of total primary energy, oil is forecast to decline, but in absolute terms it will grow as overall energy consumption increases).