For the first time since 2002 world oil production has fallen. According to BP’s annual review there has been a decline in production of 0.2 percent in 2007.
World production fell in part because of a supply restraint by OPEC, which is the source of two in every five barrels of oil worldwide.
Daily production slid by 130,000 barrels last year to 81.5 million barrels. On the world oil market, global reserves and production are marginally down while consumption continues its steady rise especially in developing economies such as China and India.
BP insists that global oil reserves are sufficient to meet current production for more than 41years. The company also points out that when it comes to producing more oil, the problems are political and not geological.
Some of the world’s largest reserves, such as those of Saudi Arabia, are off limits to foreign investment. Sanctions, wars and violence have slowed progress in developing Iraq’s oil industry.