 Proven reserves  Estimated reserves

 

 How much oil or gas  Guesses based on

can be recovered scientific
from the ground at understanding as to
current prices the location and
 amount of oil and
gas that can be
found

Forms of oil sources(Deposits)
Quick facts
 First oil sunk in 1859
 Has commercial and political influence
transcending borders
 Exploration and transportation is very
expensive

Oil reserves known to exist by
continent
 Middle east 62.5%
 Latin America 12.5%

 Africa 5.9%

 CIS and Europe 5.9%

 Asia and Australasia 4.5%

 North America 4.2%

 Western Europe 1.8%


World oil distribution
Europe and North Sea oil
 Began 1959, discovery of Groningen “Gas
Bubble” Netherlands
 This pointed way towards potential of the
Southern areas of North Sea
 Norway,Britain,Germany,Denmark

 Proved reserves are 23billion barrels

 Suspected reserves between 2.4 and 3.2

billion barrels

Major oil consumers
 CIS and Eastern Europe 16.7%
 Asia and Australasia 19.8%

 Western Europe 29.0%

 North America 29.0%

 Others 15.3%

World oil consumption
Advantages of oil
 Cheaper than other energies
 Light, powerful and convenient
 One of the most reliable resources
 Currently many reserves and refineries.
 Easily transported liquid
 Petroleum fuels are quite clean
Sulphur & metal contaminants remains
in refinery residue
 Certain components make excellent solvents
for paint, industrial use etc
Disadvantages of oil
 It is now harder to find and hence more
expensive. There may not be much left.
 Whenever there is an oil spill there is usually a
massive environmental disaster.
 It releases huge quantities of carbon dioxide
into the atmosphere, both in its production
and in its use, adding to the greenhouse
effect.

 Burning it in vehicles releases particles into
the air that contribute to thousands of
human deaths each year.

Diminishing reserves
 Oil will last for about forty years if current
levels of consumption persists
 Even Saudi Arabian resources will last for
about

Political implications
 Victims of success
 (Sudan,Angola,Chad,middle east etc)

 Persia Gulf War

 OPEC

 Middle East oil


Geographic implications of ME oil
 This forces major consumers to develop
energy options
 Countries are forced to;

 Maintain good political links with M.E

 Strive for political stability in the region

 Involve the M.E in economic cooperation

