In the year 2011, the global oil reserves had a growth of 1%; similarly even gas reserves had a growth of 4%. There was a major growth in the oil and gas revenues of 27% were also seen in the year 2011 as per the analysis.
The oil and gas industry is booming mainly due to the increased demand for global energy or a natural source of energy. Because of which, oil and gas industry has a wide range of challenges and opportunities.
Because of the rise in overall expenditure for exploration, it resulted in an increase of oil and gas reserves in 2011. The increase of the reserves was mainly found in US and Canada. As per the study conducted on the exploration and production for 75 companies between 2007 and 2011, the data shows that the raise in spending on exploration and development in the year 2011 was $384.2 billion, which was 19% higher than in the year of 2010 given by Ernst & Young.
The identification of new reservoirs, field extensions, or improved recovery techniques are the major growth factors of the oil and gas reserves as these factors brings in efficiency enhancement.
In the near future, the Asia-Pacific region can become the world’s largest supplier of LNG i.e. liquefied natural gas due to the increase of gas reserves. And it could also result in increased investments mainly by financially better standing companies in LNG related projects during 2013, which will, lead to bigger global reserve growth next year, as given by Dale Nijoka, an expert from Ernst & Young’s Global Oil & Gas.
Even though there was a growth in oil and gas reserves in 2011, but globally the oil production decreased by 4%.
As per the evaluation made based on the region, the data provided by Ernst & Young says that the oil production had increased in all other regions except Africa, Middle East and Europe. The main reason for the decline in oil production in these regions was mainly due to political instability. In Europe oil production declined, due to continued lack of investment in exploration and development of oil and gas reserves.
In Europe, GE Oil & Gas has a strong presence. When sub-sea centre operations began in Bristol as a part of the expansion of GE Oil & Gas in Europe, it will result in 200 new British jobs next year. The company‘s business new project also includes drilling in the North Sea, which will also create opportunities for commercial and project management jobs. Rod Christie, Vice president for Subsea Systems at GE Oil & Gas said that, due to a large group of high integrity industries, there would be a growth in GE Oil & Gas in Europe.
There would be an exponential growth in the oil and gas reserves in the future. Almost all the other industries in the world are dependent on Oil and Gas industry. The world depends upon energy, and hence a decline in Oil and Gas industry would affect other industries as well. Therefore, the growth in the oil and gas industry plays a vital role in the world.