The Global Oil Industry

World Oil Production

Venezuela

UAE

Norway

Canada

China

Mexicp

Iran

USA

Saudi Arabia

Russia

2.5

2.6

2.7

3.3

3.6

3.7

3.8

7.3

8.9

9.7

Millions of barrel per day

Source: IEA (International Energy Agency) Jan 2007

10 Biggest Oil Companies

Kuwait Petroleum Corp

Cheveron

Pemex

Royal Dutch Shell

BP

PetroChina

ExxonMobil

National Iranian Oil Co

Gazprom

Saudi Armaco

3.2

3.5

3.6

3.9

4.1

4.4

5.3

6.4

9.7

12.5

Millions of barrel per day

Source: Forbes Post, 2012

Case example: Saudi Aramco

Operations in exploration,

production, refining, marketing,

and international shipping

The company has ~1/4 of world oil reserves

The company is headquartered

in Dhahran, Saudi Arabia and

employs about 52,100 people

State owned

Source: gulfofmexicooilspillblog.com

Global Oil Spill

Did you know?

Global oil consumption reached an all-time high of 87.4 million barrels per day in 2010, according to a new Vital Signs Online

report from the Worldwatch Institute

“Between the recession, the BP oil spill, and instability in the Middle East and North Africa, oil markets have been on a roller

coaster the last few years,” said Worldwatch Sustainable Energy Fellow Saya Kitasei, who co-authored the report along with

Worldwatch researcher Natalie Narotzky

Key findings from the report, which can be found at vitalsigns.worldwatch.org, include

− After falling 1.5 percent between 2008 and 2009 due to the global financial crisis, global oil consumption recovered by 3.1

percent in 2010 to reach an all-time high of 87.4 million barrels per day.

− Oil consumption in countries belonging to OECD was more than 7 percent lower in 2010 than in 2005, while consumption in

non-OECD countries is up 20 percent since then

− In 2010, oil remained the largest source of primary energy use worldwide, but its share of this use fell for the eleventh

consecutive year, to 37 percent. Responding to this falling demand, global oil production fell 2.1 percent to 80.3 million

barrels per day in 2009

− One third of the increase in consumption came from China, which now uses over 10 percent of the world’s oil

− Political unrest in the Middle East-North Africa region and uncertainty about new regulations on deep-water offshore oil

drilling have both further contributed to volatility in the global oil market.

− The Middle East remains the largest exporter of oil with 35.3 percent in 2010, followed by the former Soviet Union and the

Asia Pacific region

− Global proved oil reserves have been increasing since 1980 and reached an estimated 1,526 billion barrels in 2010

− Canadian oil sands now contribute around half of that country’s crude oil production and are expected to provide a growing

share, but they are energy- and water-intensive to develop. In the case of pit mining, they can lead to extensive landscape

alteration and large waste streams of toxic mining tailings

Source: www.worldwatch.org

Biomass

Wind

Hydropower

Solar Power

Renewable Resources

Geothermal

Hybrids

A hybrid vehicle is a vehicle that uses two or more distinct power sources

to propel the vehicle. Power sources include

− On-board or out-board rechargeable

energy storage system (RESS)

− Gasoline

− Hydrogen

The term most commonly refers

to Hybrid-electric vehicle (HEV)

which includes internal combustion

engines and electric motors

Pros and Cons of Nuclear Power

Contributes less to

global warming

15% of the world's

electricity comes

from nuclear power

Long-term radioactive

waste storage pro-

blems, not resolved

The world's nuclear

industry has had

serious accidents

People vote on Nuclear Power

Total responses to this question: 43,308

Good idea

79%

Bad idea

21%

Some people suggest that greater

concentration on conservation is key

Most of us all over the world still

waste fuel on a excessive scale,

and the savings we could make

by greater efficiency, and by just

switching off, are immense

Conservation is the Key

The heated debate on drilling

The debate on drilling has been going on since 2004. When Americans

began weighing the pros and cons to offshore and Alaskan drilling

Natural disasters here has spurred even more talk on this debate

Generally because hurricanes in the paths of oil production rigs  because

they create imbalances to supply and demand which affect the price of

gas

The Value Chain of Oil and Natural Gas (1a)

Seismic waves reflect off rock formations and travel back to hydrophone receivers

Geologists then estimate the structure and types of formations under land by measuring travel times of the returned energy

This tells them where to drill

Clearing the land and building access roads

Have a source of water nearby, or drill a water well

Digging a reserve pit for rock and mud that comes up in the drilling process

Drill the surface hole, and after reaching the pre-set depth, cement the casing so it does not collapse

Drilling continues in stages: They drill, then run and cement new casings, then drill again

Run tests to make sure they are at the right depth

Remove the drill, and place a pump on the well head. The pump system forces the pump up and down, creating a suction that draws oil up through the well

If the oil is too heavy a second hole is drilled where steam pressure is injected

Heat from the steam thins the oil, and the pressure pushes it up the well

Gas and oil are gathered and trans-ported, through pipelines or ships, to processing facilities 

Gasoline and natural gas are used as fuel in the transportation sector

Oil can be stored in specially built tanks before being processed into products or exported

Oil and gas can be used as fuel in the generation of electrical power

Oil and gas are exported either as refined products or crude oil in specialized tankers

The activities of the oil value chain create wealth in the form of taxes, and dividendsfor countries and help provide more employment opportunities

Seismic exploration

Preparing to drill

DrillingExtracting the Oil

Production Social and economic benefit

1 2 3 4 5 6

The Value Chain of Oil and Natural Gas (1b)

Drilling off the coast of Cuba

The Discoverer Deep Seas drill ship sits off the coast of Louisiana as Chevron drills for oil in the Gulf of Mexico

Examples of drill ships

Countries contending for Arctic Ocean Drilling & Shipping Rights

Canada

USA

Russia

Denmark

Finland