Changing Patterns Of Oil Production

And ConsumptionIB SL

Production

• In 2003, global oil production was at 70m barrels per day.

• 8 producers accounted for over 50% (USA, Saudi Arabia, Russia, Iran, China, Venezuela, Mexico, and Norway).

• Oil production is marginal or non-existent in many countries such as Africa.

Consumption

• 7 countries accounted for over 50% of global demand (USA, Japan, China, Germany, Russia, Italy, and France).

• Oil demand is roughly a function of population and level of development.

• Since 1965, oil consumption has nearly tripled.• In 2006, demand was almost 84m barrels per day (70

in 2003).• A significant share of new oil demand is assumed by

Pacific Asian Nations going through rapid industrialisation such as China (2nd after USA).

Oil Refining

• Over 80% of oil refining now takes place in Europe, North America, and Japan.

• The separation between production and refining causes problems for example oil was considered a cheap fuel and many countries became dependant on it.

• Due to the increase of oil prices, a lot of countries have had to reassess their energy policy.

Oil Reserves

• Found in various geological structures.

• Reserves could last for up to 40 years at present rates of production and consumption.

• 66% of the world’s reserves of oil are in the Middle East, followed by Latin America with 12.5%. The rest of the worlds reserves of oil are in the rest of the world.

Middle East Oil

• The importance of the Middle East as a supplier of oil is critical.

• The Organisation of Petroleum Exporting Countries (OPEC) controls the price of crude oil and this has increased its economic and political power.

• This provides an incentive for other countries to increase energy conservation or develop alternative forms of energy.

Countries Need To...

• Maintain good political ties with Middle Eastern countries and strive for political stability in the region.

• Involve the Middle East in Economic cooperation.

• Reassess coal and nuclear power as energy options.

Environmental Concerns

• Oil slicks.

• Damage to coastlines, fish stocks, and communities dependent on the sea.

• Water pollution caused by oil tankers.

• War damage (a cause for destruction).

Activity

• Using A2 Geography P190-192 answer the following questions...

1.What are the reasons for why oil is a vital world resource?

2.Explain the global importance of Saudi Arabia and the USA in connection with oil as a resource.

3.What are the environmental effects of the exploitation, transport, and use of oil?