Multinational oil and gas company British Petroleum (BP) stated that the major part of oil is too deep and won't see the light of day.
Oil companies are facing growing pressure: they must supply fuel to the market in a short time and at low prices. As a consequence, many projects do not provide sufficient returns, and some of them are losing money.
The situation is made even worse by the fact that the price for oil fell by half compared to five years ago, and by the necessity to keep carbon emissions low due to climate change.
As a part of the policy for reduction of carbon emissions, systems powered by alternative energy sources, biofuel, electric cars, are used more and more frequently. Competing energy sources may cut the demand for oil by two thirds in the nearest future.
BP's expert Dominic Emery supposes that there will be fewer and fewer oil projects. And although the oil is there, it is located deeper and deeper, and it is becoming harder to extract. For this reason, BP has already cut expenses on exploration and is focusing on investing in shale.
Today, on July 3, the price of a barrel of oil is USD 62.58.