NEW YORK--(BUSINESS WIRE)--April 16, 2007--The world is currently producing more oil annually than it is replacing with new reserves. That sobering conclusion emerges from a new survey of global liquids reserves published by Energy Intelligence.

In contrast to the gradual rise in global oil reserves that has been reported annually in most surveys based on public sources, the new assessment shows that the trend in worldwide liquids reserves is actually one of stagnation and modest decline. The PIW Reserves Survey shows global oil reserves declining by almost 13 billion barrels, or 0.9%, over the last two years to 1.459 trillion bbl at the end of 2006 on a "proved plus probably" basis. Global oil reserves are liquid hydrocarbons, natural gas liquids, tar sands and crude oil, that are economically recoverable at current prices.

The PIW survey uses a somewhat broader definition of reserves than the other surveys based on public sources and it applies that definition consistently and systematically across all countries, fully accounting for production declines and new additions.

The main reason for the poor performance in growing reserves is a lack of additions to reserves from new discoveries, which account for 20% or less of additions in the last few years. The high oil prices and sharply increased upstream spending budgets of most oil companies have not yet provided any significant improvement in global additions to reserves, but more time may be needed. For 2006, the big increases in reserves were led by Brazil and Kazakhstan. Among the top 20, only eight countries saw increases last year, while the rest were flat or in decline.

The PIW survey also confirms earlier suspicions about the overstatement of reserves by Kuwait and some other Opec producers. At the same time, the survey also indicates that reserves in Russia and some other non-Opec countries are much higher than is generally reported.

The Top 10 holders of oil reserves (in billion barrels) at the end of 2006 were:

About Energy Intelligence (www.energyintel.com)

Energy Intelligence has been the core information provider for the global energy industry for more than 50 years. We provide decision-makers with critically important news, data and analysis on the global oil and gas markets. Our tradition of delivering high-value, reliable and incisive information to a sophisticated professional audience is exemplified in our longstanding benchmark publications, such as Petroleum Intelligence Weekly, The Oil Daily, Natural Gas Week, World Gas Intelligence and Energy Compass. Energy Intelligence is headquartered in New York and has offices in Washington, D.C., London, Houston, Moscow, Singapore, and Dubai. More information on Energy Intelligence is available at www.energyintel.com or by calling +1.212.532.1112.

Contact: Tom Wallin, Energy Intelligence, 1-212-532-1112 ext. 1105, twallin@energyintel.com.

# # #