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Energy Challenges and Dilemmas

Fossil fuel stocks, reserves and their global distribution

  • 3 things to know
  • Component 3 Section B

Overview

Proven reserves, reserves-to-production ratio and why fossil fuel deposits are so unevenly distributed.

What you need to know

Answer each one before you reveal it.

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Key term

Distinguish a resource from a reserve.

Key term

Define proven reserves.

Key term

What is the reserves-to-production ratio?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    Distinguish a resource from a reserve.

    Model answer

    A resource is the total quantity of a fuel believed to exist in the Earth's crust. A reserve is the part that can be extracted profitably at current prices and technology.

  2. 2

    Define proven reserves.

    Model answer

    Proven reserves are quantities that geological and engineering data show can be recovered with reasonable certainty. Recovery must also be economic under existing conditions.

  3. 3

    What is the reserves-to-production ratio?

    Model answer

    The reserves-to-production ratio divides remaining reserves by the current annual rate of production. The result gives the number of years reserves would last at that rate.

  4. 4

    Explain why a reserve figure can rise even as a fuel is extracted.

    Model answer

    A higher price makes deposits worth extracting that were previously uneconomic. Exploration and improved recovery technology also convert resources into reserves.

  5. 5

    Which countries hold the largest proven oil reserves?

    Model answer

    Venezuela and Saudi Arabia hold the largest proven crude oil reserves. Canada, Iran and Iraq complete the leading group.

  6. 6

    Why does Venezuela top the oil reserve table despite low output?

    Model answer

    Venezuela's reserves are mostly extra-heavy crude in the Orinoco Belt. The oil is costly to upgrade, and underinvestment has cut production far below capacity.

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