GLOBAL oil production fell for the first time in five years in 2007 and reserves also declined as prices rose to records, BP has said in its annual Statistical Review of World Energy.
Crude oil production dropped 0.2 percent to 81.533 million barrels a day last year, from 81.659 million barrels a day in 2006, the company said yesterday. Proved reserves were 1,237.9 billion barrels at the end of last year, compared with a revised total of 1,239.5 billion barrels for 2006, Bloomberg News said.
Crude oil prices have doubled in the past year to more than US$130 a barrel as demand from China and India jumped and global production stagnated. That's fanning inflation and slowing global economic growth as manufacturers pass on higher costs and consumers are forced to spend more on fuel.
"The defining feature of global energy markets remains high and volatile prices, reflecting a tight balance of supply and demand," Chief Executive Officer Tony Hayward said. "These have put issues such as energy security and alternative energies at the forefront of the political agenda worldwide."
Flagging supply from regions including the North Sea and Mexico has lent support to the theory that world oil output has "peaked," a view held by some analysts. Others, including BP's Hayward, have said production will keep rising. Global oil consumption rose 1.1 percent to 85.22 million barrels a day last year, BP's review said. In China, the world's second-largest consumer, demand rose 4.1 percent to 7.855 million barrels a day. United States consumption fell 0.1 percent to 20.698 million barrels a day.
Natural gas production gained 2.4 percent to 2,940 billion cubic meters last year. Growth was led by the US, where output jumped 4.3 percent to 545.9 billion cubic meters.
The global trade in liquefied natural gas increased 7.3 percent last year, according to BP. Total LNG imports increased to 226 billion cubic meters in 2007 from 211 billion cubic meters in 2006.