See the comment below explaining this graph and this link for further explanation (again, "anonymous" has bailed me out and taught me a lot, thank you): http://www.economist.com/blogs/dailychart/2011/06/oil-production-and-consumption. To explain the graph below, BP writes:
Update: The authors of the BP report have asked us to highlight that a large part of the difference between consumption and production, in the charts above, is accounted for by such things as biofuels, oil made from coal and other non-conventional sources, which are not included in their production figures.
So there has been a "shortfall" (growing I might add) since 1980?
ReplyDeleteLets see if we can figure this out. We have had a "growing" shortfall for what 30 years? So my question is this. How can consumption of ANYTHING exceed production for 30 years ??? I am sure there is a simple explanation and you will give us a clue ??? (don't give us 10000 words pls ). :)
Strategic petroleum reserve in the currently holds 726.5 million barrels.
ReplyDelete727,000,000 / 365 --> 2 million bbls/day
2 million / 30 --> 65,000 bbls / day over 30 years.
The US' SPR is the largest reserve in the world, but not the only one.
According to the article, adding up yearly variances did not result in a net deficit until 2004 which also coincided with surge in price of oil.
About sixty (60) words.
First sentence should include the phrase "... in the US currently holds ..."
ReplyDeleteOk, well I still dont get it. Looks like the chart shows a 5 million per day shortfall.
ReplyDeleteYour math/numbers were quite confusing. The graph (which is worth 10000 words) seem to show that consumption exceeds production . I don't see how filling sprs accounts for that but if it does, then maybe US could see lower gas prices if we stop filling spr?
The. SPR is full. The original target was 700 million bbls which was the initial capacity. Another 27 million bbls were added later.
ReplyDeleteThere have been attempts to increase capacity and add more but, so far, not successful. Lately, the administration has talked about releasing some, about which I've posted.
The chart is global. Obviously, China, Russia, Europe, Australia, England, India, others have their own reserves. The reserves are not the only explanation for the delta between production and consumption.
With regard to my arithmetic, I'm simply pointing out that the equivalent of 727 million bbls represents 2 million bbls per day over one year, and 65,000 bbls per day over 30 years. Some years we added, many years we didn't.
I do not get this chart either....More consumption than production, but no shortages ?
ReplyDeleteIs it time for me to attend Head Start ?
The use and reference to the bp chart is misleading in the rigzone piece and the initial post.
ReplyDeleteSee this link (update requested by bp at end). Also, chart has nothing to do with spr.
http://www.economist.com/blogs/dailychart/2011/06/oil-production-and-consumption
Thank you, very much. That makes sense. I knew the SPR was a stretch, but my hunch is that countries and companies are using stored oil to make up shortfalls more than we may know, or they are willing to say.
ReplyDelete