Middle East oil consumption up 4.4 % in 2007

Middle East oil consumption showed above average growth of 4.4 % during 2007 as regional and global production fell for the first time since 2002, according to the recently released 2008 BP Statistical Review of World Energy.
The rise in Middle East oil consumption to 6.2 mm bpd reflects the region's continued strong economic growth and mirrors a worldwide trend of increasing demand from emerging markets. In percentage terms, the regional increase in oil demand was the world's third highest after Latin America and Africa.

Middle East oil production fell by 1.8 % to 25.2 mm bpd on the back of OPEC production cuts in late 2006 and early 2007. The decline was partially offset by a 7 % increase in production from Iraq. The 350,000 barrel per day drop in OPEC production was noticeable on the global oil production total, which fell by 0.2 %, or 130,000 bpd, to 81.5 mm bpd.
Saudi Arabia continues to be the world's largest oil producer with an average output of 10.4 mm bpd in 2007 amounting to 12.6 % of total global production. Middle East proved oil reserves stood at 755 bn barrels at the end of 2007, or 61 % of the world total, equivalent to 82 years of production at current levels. Global proved oil reserves amounted to 1.24 tn barrels, sufficient to meet current worldwide production for more than 41 years.

The Middle East also contains 41 % of the world's gas reserves, with regional reserves standing at 2,585 tcf at the end of 2007. The vast majority of the region's gas reserves are found in Iran and Qatar, respectively home to 15.7 % and 14.4 % of the global total. The world's largest gas reserves, a quarter of the global total, are found in the Russian Federation.
"The Review shows that the world's fossil fuel resource base remains sufficient to support growing levels of production but the continued weakness in oil supply and increasing demand outside the OECD also highlight the challenges that industry faces in maintaining secure energy supplies," said Mark Finley, general manager, Global Energy Markets & US Economics, ahead of a regional tour during which he will meet with industry officials and policy makers from Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.