Energy in focusBP Statistical Review of World EnergyJune 200422003 in reviewOil 4Reserves 6Production 9Consumption 12Regional consumption by product group 14Prices 15Stocks 16Refining 18 Trade movementsNatural gas 20Reserves 22Production 25Consumption 28Trade movements 29PricesCoal 30Reserves 30Prices 32Production 33ConsumptionNuclear energy 34ConsumptionHydroelectricity 35ConsumptionPrimary energy 37Consumption 38Consumption by fuel 40Fossil fuel reserves-to-production (R/P) ratios 40Consumption per capitaAppendices Conversion factors DefinitionsFind out more onlineAbout BPThe BP Statistical Review of World Energy 2004 is available online at www.bp.com/statisticalreview2004Our website contains all data found in the printed edition, plus a number of additions, including: The historical series from 1965 for many sections; Extra tables for natural gas, coal, hydroelectricity, nuclear energy and electricity; Additional energy topics including renewable energy; Energy charting tool, where you can view pre-determined reports or chart-specific data according to energy type, region and year; Oil, natural gas and LNG conversion calculator; Alternative file formats and a full list of file downloads.BP is one of the worlds largest oil and gas companies, serving some 13 million customers in more than 100 countries across six continents. Our main businesses are exploration and production; refining and marketing; gas, power and renewables; and petrochemicals. Through these business segments, we provide fuel for transportation, energy for heat and light, retail brands, and petrochemicals products for use in everyday items.BP 2004 Statistical Review of World EnergyIn a period of great volatility and uncertainty in world energy markets, it is important to establish the facts, because only facts can provide a sound basis for judgement and policy. The BP Statistical Review of World Energy, now in its 53rd year, aims to provide one important part of that fact base recording, year by year, the production and consumption of all the main forms of energy on a global basis. This years Review contains much fascinating information, and I would draw your attention to just four points of particular significance. Firstly, the data illustrates the continued growth in reserve volumes across the world. At current levels of consumption there are sufficient reserves to meet oil demand for some 40 years and to meet natural gas demand for well over 60 years. On recent trends there appears to be considerable scope for proved reserves (and production) to keep rising in Russia and elsewhere. Reserves, globally, have grown over time and it is clear that the issue of energy security, which has been so prominent over the last year, is driven not by a physical shortage of supply but by the challenges of ensuring, in a world where demand and supply are not co-located, that there will be sufficient traded oil and gas to meet rising demand. Secondly, the Review puts in context the recent surge in prices. Even at $40 per barrel, the price of crude oil in real terms is still only half the level reached in 1980. An effective global market and continued advances in technology have enabled the world to absorb a 25% increase in daily oil demand in the intervening period. Thirdly, though oil remains a vital fuel, with few viable substitutes in the transport sector in particular, the energy mix is being balanced by continued growth in demand for natural gas. Technical advances have encouraged gas consumption, as has the desire to move to fuels that emit less carbon. The Review records last years double-digit growth in liquefied natural gas trade, one indicator of the fact that gas is now traded internationally as well as regionally. Fourthly, the Review tracks the changing geographic pattern of the energy market led by the doubling of Chinese oil demand over the last 10 years. China has now overtaken Japan as the worlds second largest consumer of oil behind the United States. Chinese decisions on imports and trading links, for both oil and natural gas, will be a major influence on the world energy scene from now on. I would like to thank all those within BP and beyond who have helped to produce this years edition, which can be found on our website at www.bp.com/statisticalreview2004. I hope you will find it a useful and stimulating summary of a fascinating and ever evolving story, which remains at the heart of human progress.The Lord Browne of Madingley Group Chief Executive June 2004Foreword2BP 2004 Statistical Review of World Energy2003 in reviewThis years Statistical Review includes a new improved data series for proved oil and natural gas reserves. The new series does not necessarily meet the United States Securities and Exchange Commission definitions and guidelines for determining proved reserves nor necessarily represent BPs view of proved reserves by country. Rather it has been compiled using a combination of