No oil shortage

Some interesting views from the oil industry on why the world is unlikely to run out of crude. Abdallah S Jum’ah, the president and chief executive of Saudi Aramco, gave several reasons why oil supplies are likely to last another 140 years at present rates of consumption. In a speech to the third international seminar of the Organisation of Petroleum Exporting Countries (Opec) on 13 September he outlined how technological development is bolstering oil production:

• Computer power is increasing rapidly. This makes the exploration and production of oil more efficient.
• Oil recovery rates from known fields are improving.
• Exploration and production costs are falling. It is becoming easier for oil companies to operate in deep-water, extreme cold and other difficult conditions.
• Unconventional oil resources are being developed including extra-heavy oil, tar sands and bitumen.
• Advanced technology is lowering the environmental costs of oil production.

Similar points were made by Rex W Tillerson, the chairman and chief executive of Exxon Mobil, in a speech on the same day.