A rejuvenated US market countered stifled production in conflict-ridden Libya, according to BP’s latest Statistical Review of World Energy.
The review, first launched in in 1951, examined how energy has echoed broader global themes. The US recorded a massive increase of 1.1 million barrels a day, according to the research.
Targeted investment in shale and “tight” formations drove the year-long surge. However, the review also highlighted the largest global oil production slump in Libya as the country battles prolonged civil unrest.
The report was launched at the World Petroleum Congress meeting in Moscow today.
BP group chief executive Bob Dudley said: “The review again demonstrates the strength of the flexible global energy system in adapting to a changing world. The major disruptions to production seen throughout 2013 were balanced by continued rises in production elsewhere. This underlines the importance of continuing to secure these new supplies through continued access to new resources, policies to encourage markets and investment, and the application of new technologies worldwide.”
The report highlights the need for both policy and market forces to strike a harmonious chord, according to BP chief economist Christof Rühl.
He added: “The huge investments seen in the US have been encouraged and enabled by a favourable policy regime. And this has resulted in the US delivering the world’s largest increase in oil production last year. Indeed, the US increase in 2013 – up by 1.1 million barrels a day – was one of the biggest annual oil production increases the world has ever seen.”
According to the report global energy consumption grew by 2.3% in 2013 with oil remaining the world’s leading fuel with 32.9% of global energy consumption. However, oil lost market share for the 14th consecutive year and currently sits at its lowest level since 1965.
BP’s global proved oil reserves estimate rose by 1.1% to 1,687.9 billion barrels at the end of 2013. The figure is enough to meet just more than 53 years of current oil production.
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