Oil giant reserves may drop sharply or bring hidden dangers

Since 2015, the overall reserves of international oil companies have fallen by 25%, and the available resources have been exploited for less than 10 years.

●Wang Li

According to Russian media reports, the oil reserves of international oil companies have fallen sharply in the past five years, posing a threat to the stability of the oil market.

If reserves and production decline, there will be no sustainable future

According to Citigroup data, since 2015, the overall reserves of international oil companies have fallen by 25%, and the available resources have been exploited for less than 10 years.

Citibank said in a research report that the decline in the reserves of international oil companies is an imminent challenge facing the market.

Insufficient reserves, the energy transition must also draw a question mark

As demand recovers and oil prices climb, these companies will have a lot of potential wealth to use in 2021.

As Citibank said, the recent "black-to-green" by the International Petroleum Corporation means that 80% of the cash flow generated by oil and gas activities (expected to be 70% by 2030) will turn to green energy.

According to a research report by Citibank, international oil companies can be divided into two groups, six of which have reserves of about 10.

　　In addition, the geopolitical factors that force international oil companies to lower the reserve ratio should also be assessed.

　　Relying on national oil companies is not the best solution

　　The main impact of this development trend is that while international oil companies are striving to maintain production, some national oil companies have managed to maintain sufficient reserves.

　　Global oil and gas supply provides security for non-oil and gas producing economies, but this system is currently under threat.