World Oil Balance, 1965-2016

World Oil Balance, 1965-2016

In 1,000 of barrels per day. Source: BP Statistical Review of World Energy.World Oil

The net regional difference between oil production and consumption often depicts imbalances, which globally evens out when surpluses are transferred and national production is taken into account. For instance, while North America and Europe have a negative balance, the Middle East has a significant surplus. It is however Pacific Asia that has experienced the most significant growth in its imbalances. The drop in imbalances concerning the Middle East in the early 1980s is related to the Second Oil Shock, which incited the exploitation of new fields in North America and Europe, which saw a reduction of their oil deficit. Further, the recent exploitation of shale oil and tar sands in North America has contributed to a reduction of the region’s deficit. The spatial differentiation of supply and demand can only be overcome by oil transportation.