Table Of Contents• Preface

• Chapter 1 Major Factors Impacting The Global Crude Oil Addiction• Chapter 2 Individual Country Analysis• Chapter 3 Major U.S. Exploration & Production Companies

• Statistical Tables• Conclusion• Sources• Additional Information• Author Description

Chapter 1Major Factors Impacting The Global Crude Oil Addiction

• Global Crude Oil Consumption

• Mexico

• WTI/Brent Comparisons • Great Britain

• Components Of Crude Oil Consumption

• Norway

• Largest Oil Consuming Nations

• Nations Which Subsidize Crude Oil

• OPEC • European Debt Crisis

• Different Grades Of Crude Oil

• PIIGS

• Oil Depletion • Crude Oil Prices In 2012

• Technology Innovation • Hybrid/Electric Vehicles

Chapter 2Individual Country Analysis

• United States • Libya

• Brazil • Iraq

• Russia • Venezuela

• India • Canada

• China

Chapter 3Major U.S. Exploration & Production Companies

• Anadarko Petroleum • Devon Energy

• Apache • ExxonMobil

• Chevron • Occidental Petroleum

• ConocoPhillips/Phillips 66

Global Crude Oil Consumption

Global Crude Oil Consumption

• Global Crude Oil Demand Is Rapidly Approaching 90 Million Barrels Per Day• Global Crude Oil Consumption Is Nearly 28 Billion Barrels Annually• From 2000 To 2011, Global Crude Oil Demand Has Increased From Over 76 Million Barrels Per Day To Over 87 Million Barrels Per Day• Voracious Vehicle Demand & Depleting Conventional Crude Oil Supplies, Over The Last Decade, Were Major Factors Driving Crude Oil Prices From $20 Per Barrel, In 2000, To As High As $147 Per Barrel, In 2008

Largest Oil Consuming Nations

Largest Oil Consuming Nations

• U.S. Consumed Over 18 Million Barrels

Per Day In 2011• China Consumed Slightly Less Than 9 Million

Barrels Per Day In 2011• Japan Consumed Over 4 Million Barrels Per

Day In 2011• Countries Which Consumed Over 1 Million

Barrels Per Day In 2011 Include: Germany,

France, India, South Korea, Spain, & Italy

OPEC

OPEC

• 12 Members Of OPEC Supply Approximately 40

Percent Of The World’s Conventional Crude Oil• Over The Next Five Years OPEC Plans To

Invest $312 Billion To Bring Forth New Oil

Supplies• In 2011 OPEC Earned An Astonishing $1.01

Trillion From Its Net Crude Oil Exports, As Brent

Averaged $111.28 In 2011

Nations Which Subsidize Crude Oil

Nations Which Subsidize Crude Oil

• Venezuela’s Citizens Paid 8 Cents A Gallon For

Gasoline In 2011 Due To Government Subsidies

• Iran Changed Its Subsidies To Its Citizens In Late

2010. Consumers In Iran Paid 36 Cents For Gallon

Of Gasoline In 2011. In 2010, Citizens In Iran Paid

9 Cents A Gallon

• Gasoline In Saudi Arabia Costs Between 40 Cents

To 44 Cents A Gallon

• Saudi Arabia Must Become More Energy Efficient,

And Due To Its Increasing Energy Consumption, Its

Oil Exporting Capacity May Be Reduced Significantly

Different Grades Of Crude Oil

Different Grades Of Crude Oil

• The American Petroleum Institute (API)

Classifies Crude Oil By Their Respective API

Gravities & Sulfur Content• API Gravity Measures Density Or Viscosity• Sweet Crude Oil Has A Lower Sulfur Content• Sour Crude Oil Has A Higher Sulfur Content• Light Oils Have API Gravities Higher Than 31.1

Degrees, Medium Oil’s Have API’s Between

22.3 Degrees & 31.1 Degrees, Heavy Oil’s

Contain API’s Below 22.3 Degrees

Technology Innovation

Technology Innovation

• 3-D Seismic During The 1990’s Revolutionized

The Quest For Finding New Quantities Of Oil &

Natural Gas• Horizontal Drilling & Hydraulic Frackturing Have

Enabled The Energy Industry To Access New

Resources In Low Permeability Rocks & Shale

Formations

PIIGS

PIIGS• Portugal’s Challenges Include: High Amounts Of

Public Debt, Low Competitiveness, & Low Growth• Ireland Has Suffered From The Collapse Of Its

Construction & Housing Sectors• Italy Possesses A High Public Debt Burden, &

Widespread Tax Evasion• Greece Has Received Two Bailout Packages, &

Unemployment Is Over 24 Percent• Spain Is Still Reeling From The Collapse Of Its

Property Market, Which Has Left Its Banks Saddled

With Bad Loans

Hybrid/Electric Vehicles

Hybrid/Electric Vehicles

• Toyota Motors, Since 1997, Has Seen Global

Cumulative Sales Of Its Toyota Prius, Surpass

4 Million Units• According To Bloomberg New Energy Finance,

Nearly 43,000 Electric Vehicles Were Sold

Globally In 2011• Reducing The Battery Cost In Electric Vehicles

Is The Major Challenge In Making Electric

Vehicles More Competitive

Can Natural Gas Be Used As A Viable Alternative To Crude Oil?

Can Natural Gas Be Used As A Viable Alternative To Crude Oil?

• The Trucking Industry In The U.S. Consumes 2.5 Million Barrels A Day Of Diesel Fuel• Navistar & Westport Innovations Are Advancing Compressed Natural Gas Vehicles, (CNG), To Reduce Diesel Consumption Within The Heavy Truck Industry• Natural Gas Is Expected To Grow The Fastest Over The Next Several Decades, When Compared To Both Coal & Crude Oil • ExxonMobil Expects Natural Gas To Replace Coal, As The Leading Fuel For Generating Electricity In The U.S., By 2025

United States

United States• 2011 Crude Oil Demand In The U.S. Totaled 18.83 Million Barrels Per Day• The U.S. Consumes Over 6.5 Billion Barrels Of Crude Oil Annually• Canada, Mexico, Saudi Arabia, Nigeria, & Venezuela Exported The Most Crude Oil To The U.S. In 2011• New CAFÉ Standards Were Finally Approved In The U.S. In 2007 & 2010. • Since 1995, There Have Been More Than 24 Major Discoveries In The Gulf Of Mexico, Which Can Ultimately Recover More Than 200 Million Barrels Of Crude Oil

Brazil

Brazil

• In 2007 Brazil Has Made Several Very Large Oil

Discoveries In Its Santos Basin

• Brazil Is Expecting Its Total Crude Oil Production

To Double To 4 Million Barrels A Day, By 2020

• Brazil’s Surging Middle Class Is Causing Vehicle

Demand To Surge

• 2011 Total Vehicle Sales Amounted To 3.6

Million Units

Russia

Russia• Russia Has A Total Resource Base Of Nearly 1 Trillion Barrels Of Oil-Equivalent• Russia’s Four Major Offshore Regions Include: The Black Sea, Eastern Arctic, Far East, & Western Arctic• In June 2010, Russia’s Crude Oil Production, Surpassed 10 Million Barrels Per Day, A Record For Russia • Rosneft & ExxonMobil Signed A Historic Partnership, In 2011, To Develop Russia’s Vast Energy Resources, & Plan To Spend Upwards Of $500 Billion Over The Next Several Decades

India

India

• India’s Imports Over 3 Million Barrels Of Oil Daily

Which Accounts For 70 Percent Of Its Daily

Consumption

• From 2001 Through 2011, India’s Crude Oil

Imports Have Doubled

• Nearly 70 Percent Of India’s Oil Imports Are

From The Middle East

• 2011 Total Vehicle Sales In India Totaled 1.95

Million Units

China

China• In 2009, China Overtook The U.S. As The Largest

Automobile Market Globally• China Added 18.5 Million Vehicles To Its Roads In

2011• In 2010, China Overtook Japan As The Second

Largest Economy In The World• China Imports Nearly 5 Million Barrels Of Crude Oil

Each Day• China’s Major Energy Companies Have Been On A

Spending Spree To Secure Crude Oil Reserves

Overseas

Libya

Libya

• Libya Is Africa’s Third Largest Oil Producing

Nation After Nigeria & Angola• Libya Holds The Largest Crude Oil Reserves In

Africa• Libya Greatly Impacted Crude Oil Markets In

2011, And Also Caused The Spread Between

WTI & Brent To Widen Significantly• Libya’s Three Largest Oil Fields Include : The

Waha Oil Field, The Elephant Field, & The Bouri

Field

Iraq

Iraq• Iraq Has Estimated Crude Oil Reserves Of 141 Billion Barrels• Iraq Produces Over 3 Million Barrels Of Crude Oil In 2012• More Than 60 Percent Of Iraq’s Oil Production Is Exported To India & China• Iraq Has A Very Aggressive Plan To Double Crude Oil Output by 2015• The Rumalia & West Qurna Oil Fields Are Among Iraq’s Largest Oil Fields Being Developed

Venezuela

Venezuela

• The United States Geological Survey In 2009 Increased

Venezuela’s Orinoco Recoverable Crude Oil Reserves

To 513 Billion Barrels

• Venezuela Like Canada Is In The Process Of

Constructing Massive Upgraders To Upgrade Its

Massive Quantities Of Ultra Heavy Oil Resources

• Venezuela’s Largest Crude Oil Export Markets Are The

U.S. & China

• Venezuela’s Orinoco Heavy Crude Oil Projects Are

Anticipated To Start Producing In 2013, With Total

Investment Of $80 Billion

Canada

Canada• Canada Is The Largest Exporter Of Crude Oil & Natural Gas To The U.S.• 97 Percent Of Canada’s Oil Reserves Are Comprised Of Bitumen Resources• Alberta & Saskatchewan Are The Two Largest Oil Producing Provinces In Canada• Canada Is Proposing Several Pipelines To Be Built To Its Western Coast Which Include: The Northern Gateway Pipeline & TransMountain Pipeline• The Oil Sands Leadership Initiative Was Formed To Improve The Environmental, Social, & Economic Performance Of Canada’s Vast Oil Sands

Major U.S. Exploration & Production Companies

• Core Operating Regions Include:

• Anadarko Produced 680,000 Barrels Of Oil-Equivalent In

2011

• Capital Expenditures Totaled $6.5 Billion In 2011

• Revenues In 2011 Totaled $13.9 Billion

• Net Loss In 2011 Totaled $2.6 Billion

• U.S. Onshore • West Africa• Gulf Of Mexico • Algeria• Alaska • East Africa• Brazil • Canada

• Core Operating Regions Include:

• Apache Produced 748,000 Barrels Of Oil-Equivalent In

2011

• Capital Expenditures Totaled $11.7 Billion In 2011

• Revenue Totaled $16.8 Billion In 2011

• Net Income Totaled $4.5 Billion In 2011

• Argentina • Egypt• Australia • Great Britain• Canada • United States

• Chevron Operates In More Than 100 Countries Globally• Total Resource Base Of Nearly 60 Billion Barrels Of Oil-Equivalent• Returns On Capital Employed Totaled 21.6% In 2011• Chevron Recorded Its Highest Net Income In 2011 Which Totaled $26.8 Billion• Chevron Produced 2.67 Million Barrels Of Oil-Equivalent In 2011

• & Phillips 66 • ConocoPhillips Produced 1.61 Million Barrels Of

Oil-Equivalent In 2011• Net Income Totaled $12.4 Billion In 2011• ConocoPhillips Has Reduced Its Total Refining

Capacity By 400,000 BPD, Since 2009, To 2.2

Million Barrels Per Day• Acquired 400,000 Acres In Wyoming’s Niobrara

Region & Canada’s Dubernay Region In 2011

The Company Is Splitting Itself Into ConocoPhillips

• In 2011• Revenue Totaled $11.4 Billion In 2011• Net Income Totaled $4.7 Billion In 2011• Total Net Acreage In Both Canada & The U.S. Exceeds 6 Million Acres• Devon Owns Substantial Acreage In The Barnett Shale, Permian Basin, & The Haynesville Shale• Devon Acquired Substantial Acreage In 5 Tight Oil Regions, In 2011, Including: Wyoming’s Niobrara Shale & Michigan’s Utica Shale Devon Produced 657,000 Barrels Of Oil-Equivalent

• ExxonMobil Is The Largest Publicly Traded Oil Company

In The World

• 2011 Net Income Totaled $41.06 Billion, With Total

Revenues Of $486 Billion

• ExxonMobil Has A Total Resource Base Globally

Totaling 87 Billion Barrels Of Oil-Equivalent

• ExxonMobil Produced 4.5 Million Barrels Of

Oil-Equivalent In 2011

• 2011 Returns On Capital Employed Totaled 24.2%

• ExxonMobil Plans To Spend $185 Billion On Its Capital

Program Over The Next 5 Years

• Occidental Petroleum Operates In 3 Core Regions Which Include: The U.S., Middle East/North Africa, & Latin America• Occidental Petroleum Produced 733,000 Barrels Of Oil-Equivalent In 2011 • 2011 Net Income Totaled $6.7 Billion, On Revenues Totaling $23.9 Billion• 2011 Capital Expenditures Totaled $7.5 Billion

Sources