largest natural gas reserves. At our current, average crude-oil production rate, proven reserves alone are conservatively estimated to continue for approximately 80 years. I emphasize the moderate nature of these estimates, especially in light of evolving exploration and production technologies, and our ability over many years to replace our annual production capacity with new reserves, which could extend the life of these immense resources quite considerably. Now let us look at the world's total liquid energy resources in place, encompassing not only conventional oil estimated from six to eight trillion barrels, but also non-conventional liquids, ranging from condensates and natural gas liquids to tar sands, oil shales and extra-heavy oil, and estimated at seven or eight trillion barrels or higher. These figures tell us that while the days of easy oil may be over, the days of oil as a primary fuel source for the people of the world are far from over. These vast resources clearly point to our need to prioritize research, development and technology applications for finding, extracting and replacing our energy reserves. They also compel us to think about an energy future inclusive of all sources, not exclusive, and where petroleum, like other energy resources, has its rightful place in the mix. For now, let us look at petroleum energy in the context of world energy demand. At present, fossil fuels meet more than 80 percent of the world's energy requirements. Energy demand has been moderated by the economic downturn, but this dampening is broad-based, lock-step with the economic slowdown. That is because as the world's population grows toward 9 billion by the year 2050 and economic growth continues, an appropriate increase in energy consumption is forecast – and consensus agrees that fossil fuels will continue to meet the call. Many authoritative energy-tracking organizations predict that fossil fuels will continue to meet four-fifths of the world's energy requirements for at least the next few decades. In addition, transportation will continue to depend largely on oil: according to World Energy Council studies, four decades hence, the transport sector will still be reliant on petroleum. There are clear reasons for this dominant position. Fossil fuels, especially conventional oil, are proven, abundant, reliable, affordable and safe energy; they are supported by extensive production, transportation and distribution networks; and they have the advantage of an aggressive technology campaign to improve their sustainability as an environmentally friendly source. They are, and will continue to be, an integral part of modern life. --More
