Oil depletion is the decline in oil production of a well, oil field, or geographic area. The Hubbert peak theory makes predictions of production rates based on prior discovery rates and anticipated production rates. Hubbert curves predict that the production curves of non-renewing resources approximate a bell curve. Thus, according to this theory, when the peak of production is passed, production rates enter an irreversible decline.
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In this Dossier
Oil depletion in the context of Resource consumption
Resource consumption is about the consumption of non-renewable, or less often, renewable resources. Specifically, it may refer to:
- water consumption
- energy consumption
- natural gas consumption/gas depletion
- oil consumption/oil depletion
- logging/deforestation
- fishing/overfishing
- land use/land loss or
- resource depletion and
- general exploitation and associated environmental degradation
Measures of resource consumption are resource intensity and resource efficiency. Industrialization and globalized markets have increased the tendency for overconsumption of resources. The resource consumption rate of a nation does not usually correspond with the primary resource availability, this is called resource curse.
Oil depletion in the context of Oil consumption
Peak oil is the point when global oil production reaches its maximum rate, after which it will begin to decline irreversibly. The main concern is that global transportation relies heavily on gasoline and diesel. Adoption of electric vehicles, biofuels, or more efficient transport (like trains and waterways) could help reduce oil demand.
Peak oil relates closely to oil depletion; while petroleum reserves are finite, the key issue is the economic viability of extraction at current prices. Initially, it was believed that oil production would decline due to reserve depletion, but a new theory suggests that reduced oil demand could lower prices, affecting extraction costs. Demand may also decline due to persistent high prices.
Oil depletion in the context of Peak oil
Peak oil is the point when global petroleum production reaches its maximum rate, after which it will begin to decline irreversibly. The main concern is that global transportation relies heavily on gasoline and diesel. Adoption of electric vehicles, biofuels, or more efficient transport (like trains and waterways) could help reduce oil demand.
Peak oil relates closely to oil depletion; while petroleum reserves are finite, the key issue is the economic viability of extraction at current prices. Initially, it was believed that oil production would decline due to reserve depletion, but a new theory suggests that reduced oil demand could lower prices, affecting extraction costs. Demand may also decline due to persistent high prices.
Oil depletion in the context of Azeri–Chirag–Gunashli
Azeri–Chirag–Gunashli (ACG, Azerbaijani: Azəri-Çıraq-Günəşli) or Azeri–Chirag–Deepwater Gunashli is a complex of oil fields in the Caspian Sea, about 120 kilometres (75 mi) off the coast of Azerbaijan. It consists of the Azeri and Chirag oil fields, and the deepwater portion of the Gunashli oil field. An overall estimate of the area of the development is 432.4 square kilometres (167.0 sq mi). It is developed by the Azerbaijan International Operating Company, a consortium of international oil companies, and operated by BP on behalf of the consortium. The ACG fields have estimated recoverable reserves of about 5 to 6 billion barrels (790 to 950 million cubic metres) of petroleum. Peak oil production of 885,000 barrels per day (140,700 m/d) was reached in 2010. However by the first quarter of 2024, production had fallen to 339,000 barrels per day (53,900 m/d), or approximately one-third of peak value, as the production rates moved towards terminal decline. As of 2021, ACG oil accounted for 95% of all Azerbaijani oil exports.
BP reports that crude oil from ACG is exported through the Baku–Tbilisi–Ceyhan pipeline to the Mediterranean Sea and the Baku-Supsa Pipeline to Supsa in Georgia, as well as through the Baku-Novorossiysk Pipeline to Novorossiysk in Russia. It is believed that there may also be untapped natural gas reserves under the ACG oilfields.Media reports indicate that according to American Consulting Association IHS CERA (Cambridge Energy Research Associates), the Azeri–Chirag–Gunashli is the third-largest oil-field development out of 20 listed. Total investment was estimated at US$20 billion as of 2009. As of 2008 reports, oil from the ACG fields accounted for approximately 80% of Azerbaijan's total oil production (exports and domestic consumption) and was expected to bring Azerbaijan potentially $80 billion in profits.