Building a world of
resilient communities.

MAIN LIST

 

BP says oil fields declining

NEW ORLEANS - Oil company BP's existing oil and gas fields are posting production declines of about 3 per cent, Tony Hayward, the company's chief executive for exploration and production, said on Wednesday.

"That piece of the portfolio as a whole is declining around 3 per cent," he told an energy conference.

The company's key profit centers, which exclude its stake in Russian TNK-BP and new output from Azerbaijan, are expected to produce about 2 million barrels of oil equivalent per day in 2005 and are showing different decline rates, he said.

"Alaska is mostly flat; the North Sea is declining somewhere between 6 and 8 per cent; and our South America business is growing, but taken as sub-segment of E&P, it's declining around 8 per cent," he said.

Energy analysts have pointed to sharper decline rates at producing fields as a key reason for rising oil prices, which hit record highs on the New York Mercantile Exchange on Monday.

Rising demand in Asia, particularly China and India, has soaked up excess production, creating a tight supply-demand balance and driving up prices, analysts say.

Some industry participants have estimated that overall decline rates for existing producing fields could be as high as 8 per cent, forcing companies to aggressively drill for new supplies to keep production levels from falling.

BP's five-year average costs for finding and development were US$4.65 ($6.65) per barrel of oil equivalent, Hayward said, in line with company expectations for a figure between US$4 and US$5.

- REUTERS

What do you think? Leave a comment below.

Sign up for regular Resilience bulletins direct to your email.

Take action!  

Find out more about Community Resilience. See our COMMUNITIES page
Start your own projects. See our RESOURCES page.
Help build resilience. DONATE NOW.

 

This is a community site and the discussion is moderated. The rules in brief: no personal abuse and no climate denial. Complete Guidelines.


Asia depends on Middle East for 66 % of its oil imports

Of Asia’s total incremental oil imports since 2001, 4.5 mb/d (47%) …

Rural Colorado Leads the Charge for Energy Freedom

Last week the Western Slope Colorado witnessed a huge victory for energy …

“We are in danger of winning. But….”  

First in-depth radio interview on The Winning of the Carbon War, on Radio …

Renewable Energy Redoubles its Global Reach

A significant threshold has been crossed by renewable energy as analysts …

Peak Oil Review - June 29

A weekly review in including Oil and the Global Economy, The Middle East …

Energy Crunch - six months to go

With fewer than six months to go until the UN climate summit in Paris, …

BP Data Suggests We Are Reaching Peak Energy Demand

The real situation is that we right now seem to be reaching peak energy …