Probable reserves 50 90 of profitable recovery

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Unformatted text preview: , did not import oil – only found it in China after 2001, abolished policy. Demand for cars and electricity generators skyrocketed. Previous oil crises were supply- induced. The one of this decade was demand induced – because China’s demand increased so much. In 10 years from 2001- 2011, became #2 oil importer in the world. “proven reserves” is a legal term – there is at least a 90% probability of profitable recovery with existing technology and current market conditions. “probable reserves” – 50- 90% of profitable recovery “possible reserves” – 10- 15% probability of profitable recovery. Natural gas Most of the cost of gas is in transporting it, not in getting it out of the ground. R...
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