Question

If there are an estimated 20,000 barrels of unknown reserves of oil, annual consumption of oil is 800 barrels, and it is estimated that the supply of oil will be depleted in 50 years, how many barrels of proven reserves are there, all else equal? Group of answer choices 20,000 40,000 60,000 36,000

Answer 1

Answer:

20, 000

Step-by-step explanation:

For a duration of 50 years, the consumption will be equal to the product of annual consumption and the number of years hence 800*50=40, 000 barrels.

Since 20, 000 barrels are unknown and they are part if consumption in the next 50 years, then the known or proven reserves will be given by getting the difference between total consumption and unknown reserve, expressed as 40, 000-20, 000=20, 000 barrels.