Industry fighting the odds to meet increasing global oil and gas demand
Let me start by looking again at something I presented back in 2003. At that time, this slide summarized the task that we saw facing the industry. The figures, from the 2002 IEA World Energy Outlook, forecast that 2002 oil production of 77 million b/d would need to grow to 88 million by 2010. The same forecast also predicted that this increase would be dwarfed by the 33 million b/d required to replace production lost to decline. We now know that world oil production is likely to reach the 88 million b/d level perhaps as early as this coming winter—almost two years ahead of time. So what happened to change this picture and why is the industry challenged in expanding capacity to meet the increased demand?