The total amount of recoverable oil worldwide continues to decline and will be “insufficient” to handle demand without the swift electrification of vehicles, according to a new analysis from Rystad Energy.
The Norwegian research firm said global recoverable oil reserves are “largely steady” at more than 1,500 billion barrels — but added that exploration has dipped amid concerns about investing in stranded assets that lose economic value.
In its assessment this week, Rystad described investor fears of the “ongoing electrification of vehicles and the expected slump in both oil demand and crude prices.”
Overall, recoverable oil resources have declined by 700 billion barrels since 2019 because of a drop in exploration activities, Rystad said in its post. Last year, Rystad also identified electric vehicle sales as a top driver in “waning” oil demand.
