BP's latest annual review of world energy appears to paint a rosy picture of global proven oil reserves, which rose almost 2% in 2011 and are now enough to cover 54 years of current production, up from 46 years in 2010.
The positive numbers mostly reflect higher oil prices, however, rather than more actual oil in the ground, BP said.
With oil prices in 2011 at their highest ever on nominal values and the highest on an inflation-adjusted basis since 1864, the volumes of oil classified as commercially recoverable has inflated the proven reserve number used by regulators and companies alike.
This is not the only reason for the increase. BP's Statistical Review of World Energy now includes for the first time Venezuela's latest official reserves hike made in early 2011.
In January last year, Venezuela claimed its oil reserves jumped 85 billion barrels to 296.5 billion barrels, surpassing Saudi Arabia, which is estimated to hold 265.4 billion barrels.
The move was widely questioned at the time due to disagreements over whether the country's super heavy tar oil deposits are economically recoverable and doubts over the political motives of the country's fire-brand leader Hugo Chavez.
With Venezuela's reserves now in the widely-respected BP annual review, the OPEC producer's share of the world's remaining proven reserves has risen to 18%, above Saudi Arabia 18%.
Doubts may still linger over whether Venezuela's tar oils are economically viable but their inclusion in BP's benchmark report will certainly lend them greater validity.
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