AL FATEH UNIVERSITY

FAULTY OF ENGINEERING
PETROLEUM ENGINEERING DEPARTMENT

Prepared By

HAMED ABD AL SALAM SULAYMAN AL BARUNI

Supervised By

Dr.RAHUMA.M.KHULUD

SPRING 2009
 Contents
 Introduction.

 History of global oil & gas Consumption.

 Oil & gas Consumption by Region.

 Current main gas & oil Consumer.

 Consumption of Libya.

 Predating future oil & gas Consumption.

 The Factors & Problems that Cause Increase in Consumption in

the Coming Decades.

 What about Libya?

 The Solutions to the Delay in Increasing in Consumption.

SULAYMAN & HAMED PAGE 2

 Introduction

E
nergy is one of the most fundamental parts of our universe.
We use energy to do work. Energy lights our cities, Energy
powers our trains, planes, Energy warms our homes, cooks
our food, Energy powers machinery in factories,
Energy from the sun gives us light during the
day. It helps plants grow, everything we do is
connected to energy in one form or another.

Energy comes in different forms heat

(thermal), light (radiant), Mechanical, electrical, chemical, and
nuclear energy. Energy is measured in a couple of different ways. One
of the basic measuring blocks is called a Btu (Btu- the
amount of heat required to raise the temperature of
one pound of water one degree Fahrenheit) and Btu
is a British thermal unit is usually used to describe the energy content
of fuels.

There are two types of energy (potential) energy and (kinetic)

energy.

SULAYMAN & HAMED PAGE 3

 Source of Energy
WIND
GEOTHERMAL
RENEWABLE HYDROPOWER
BIOMASS
SOURCE OF SOLAR
ENERGY
PETROLEUM

NATURAL GAS
NONRENEWABLE
COAL

NUCLEAR

1)Renewable Energy
Wind Energy

Wind is simple air in motion , Through the use of

wind turbines mounted on a tower at 100 feet, wind
power is captured and converted into useful form,
such as electricity. This technology or wind turbine
can be used as stand-alone applications for water
pumping or communications. It can be also
connected to the power grid or combined with solar
energy systems. A plant with numerous wind
turbines is required for large scale demands of
energy.

SULAYMAN & HAMED PAGE 4

 Geothermal Energy

Geothermal energy is energy generated from heat

stored in the earth, or the collection of absorbed
heat derived from underground.

like Volcanic energy cannot be harnessed

(controlled and collected), but in a few places heat
from the earth,

Hydropower Energy

The energy from moving water ,hydropower

energy of the renewable energy sources that
generate electricity, hydropower is the most often
used. Mechanical energy is derived by directing,
harnessing, or channeling moving water. The
amount of available energy in moving water is
determined by its flow or fall, Swiftly flowing
water in a big river, like the Columbia River along
the border between Oregon and Washington, carries
a great deal of energy in its flow. or water
descending rapidly from a very high point, like
Niagara Falls in New York.

Biomass Energy
Biomass is organic material made from plants and
animals, Biomass contains stored energy from the
sun. Plants absorb the sun's energy in a process
called photosynthesis, Biomass is a renewable
energy source because we can always grow more
trees and crops, and waste will always exist. Some

SULAYMAN & HAMED PAGE 5

 examples of biomass fuels are wood, crops,
manure, and some garbage.

Solar Energy

The sun has produced energy for billions of years.

Solar energy is the solar radiation that reaches the
earth ,Solar energy can be converted directly or
indirectly into other forms of energy, such as heat
and electricity .
The sun is the main source for most renewable
energy forms. Solar Energy incorporated the use of
photovoltaic (solar cell) technologies. It can be
used directly as heating and cooling system, as
lighting device, as electricity generator or in a
variety of other industrial purposes.

2)Nonrenewable Energy
Petroleum Energy

Oil was formed from the remains of animals and

plants that lived millions of years ago in a marine
(water) environment before the dinosaurs.

Over the years, the remains were covered by

layers of mud. Heat and pressure from these layers
helped the remains turn into what we today call
crude oil .

SULAYMAN & HAMED PAGE 6

 The word "petroleum" means "rock oil" or "oil
from the Earth and it’s Nonrenewable energy ,
Today petroleum is the most important Energy in
the World.

Natural Gas Energy

Millions of years ago, the remains of plants and

animals decayed and built up in thick layers. This
decayed matter from plants and animals is called
organic material -- it was once alive. Over time, the
mud and soil changed to rock, covered the organic
material and trapped it beneath the rock. Pressure
and heat changed some of this organic material into
coal, some into oil (petroleum), and some into
natural gas .

Natural gas is Nonrenewable energy & it's the

second source of energy in the world.

Coal Energy

Coal is a combustible black or brownish-black

sedimentary rock composed mostly of carbon and
hydrocarbons. It is the most abundant fossil fuel
produced in the United States.
Coal is a nonrenewable energy source because it
takes millions of years to create ,Coal is one of the
largest worldwide sources of carbon dioxide
emissions. Gross carbon dioxide emissions from
coal usage are slightly more than those from

SULAYMAN & HAMED PAGE 7

 petroleum and about double the amount from
natural gas. Coal is extracted from the ground by
mining, either underground or in open pits.

Nuclear Energy

Nuclear energy is energy in the nucleus (core) of

an atom. Atoms are tiny particles that make up
every object in the universe. There is enormous
energy in the bonds that hold atoms together.
It can be released from atoms in two ways:
nuclear fusion and nuclear fission.
In nuclear fusion, energy is released when atoms
are combined or fused together to form a larger
atom. This is how the sun produces energy.
In nuclear fission, atoms are split apart to form
smaller atoms, releasing energy. Nuclear power
plants use nuclear fission to produce electricity.

OIL GAS COAL RENEWABLE NUCLEAR

50

40
Energy Use %

30

20

10

0
1980 1990 2003 2010 2020 2030
Years

SULAYMAN & HAMED PAGE 8

 Consumption

T
he use of goods and services, materials and energy, by
humans. other using up of goods and services having an
exchangeable value , Consumption is described as utilizing a
service or product until its economic value is exhausted.
It can also be described as aggregate expenditure on
personal consumption that manifests itself on buying of
goods and services Expense required is
sourced from either savings income or even
from borrowed funds. Consumption denotes
that portion of disposable income that is not saved by an individual.

Oil & Gas Consumption

Oil and Natural gas are the most important source for energy in the
world. Petroleum constitutes 39% of global energy consumption
whereas gas constituents 23% of energy consumption and the cause is
its widespread availability and its ease of transportation and
cheapness as it is a raw material for other industries. Oil and Gas are
not consumed in its original in their format but are in fact are
converted into substances at refineries.

SULAYMAN & HAMED PAGE 9

Oil and Gas are consumed as follows
1. Residential & Commercial
I. Lighting
II. Heating & Cooling
III. Electricity
2. Industry
I. Petroleum refining
II. Steel manufacturing
III. Aluminum manufacturing
IV. Paper manufacturing
V. Chemical manufacturing
VI. Cement manufacturing
3. Transportation
I. The automobiles
II. Commercial transportations
III. Trucks
IV. Trains
V. Airplanes
VI. Mass transit

SULAYMAN & HAMED PAGE 10

 History of Global Oil & Gas Consumption

SULAYMAN & HAMED PAGE 11

 The most important events that affected on the average global
consumption is

The Petroleum Crisis )1973-1975(

During the October 1973 war the Arab Oil Producing countries
placed an embargo on oil supply to America and most of the
European countries and some other
countries such as South Africa and
Rhodesia.
This embargo caused a shortage
of oil and gas globally which led
these countries to follow policies
to reduce consumption and close
factories and limit individual consumption of petroleum which led to
a decline in the average global consumption of oil and gas by 1.5%
and this continued until the year 1975.

The Iraqi - Iranian War )1980-1988(

The First Gulf War was between the armed forces of Iraq and Iran
and lasted from September 1980 until August of 1988 and this war
was one of the longest traditional
wars of the twentieth century.
In the year 1981 the oil tankers
war began which was targeting the
oil tankers and other ships of the
two countries. The goal was to cut
off supplies to the two fighting
armies and it was only the ships owned by the two countries but was
extended to supporting countries such as Kuwait and Saudi Arabia. In
spite of an effort by the gulf countries to increase production, the

SULAYMAN & HAMED PAGE 12

prices of Petroleum began to rise which led to a negative result in
consumption causing a decline.
The World Economic recession of (1980 -1986)
The World Economic recession which led to a decline in demand
for petroleum from 64.3 million barrels a
day (1979) to 58 million barrels a day
in the year 1983 with an average decline
of 3.6% a year and the cause was the
success of energy “guidance”
implemented by the industrial powers
after the crisis of 1983 and also the
undertaking by these countries of
operating its nuclear power stations which led to an acute decline of
consumption of oil and gas.

The world recession 2008 until the present

The big recession since the beginning of 2008 and the collapse of
the banks with a loss of 3 trillion US dollars this resulted from the real
estate problems and the effort by governments to
refinance the banks to cure the problem. As a
result of the global problem the decline in
demand of energy and this by an effort of all
vital sectors to reduce its spending and also the
closing of many factories in the world which led
to a noticeable decline in oil and gas
consumption and the decline of consumption
effected prices of petroleum reducing the price to 40$ a barrel after it
had reached its highest level of US$ 147

SULAYMAN & HAMED PAGE 13

 Oil Consumption By Region

REGIONS RESERVE PRODUCTION CONSUMPTION

B BBL MBBL/DAY MBBL/DAY
Total North America 69 14670 25024
Total S. & Cent. America 111 7121 5493
Total Europe & Eurasia 143 19147 20100
Total Middle East 755 27029 6203
Total Africa 117 11077 3955
Total Asia Pacific 41 8489 25944
TOTAL WORLD 1237 87533 86716

SULAYMAN & HAMED PAGE 14

W
e notice a decline in the consumption of Petroleum in
Africa which is caused by the rise in the level of poverty
and also to the great number of political and ethnic
conflicts inside the continent and this is also true in South America
because of its dependence on energy sources instead of petroleum the
most important being coal. South America is the continent that uses
coal the most. Only North America, Europe and Eurasia we note a
large increase in the use of Petroleum if it is compared to the
population and this was caused because of the higher standard of
living of the population and prosperity of the nations economically
and industrially and also non guidance of consumption as is the
situation in the nations in south Asia.
In these countries despite the presence of guidance in the
consumption of energy and because of the increase in the number of
the population so that more than two thirds of the planet population
inhabit south Asia and the rapid economic growth of these countries
has made it the region which consumes more petroleum than any area
in the world.

SULAYMAN & HAMED PAGE 15

 Gas Consumption By Region

REGIONS RESERVE PRODUCTION CONSUMPTION

3 3
T FT B FT /DAY B FT3/DAY
Total North America 281.6 76.4 77.5
Total S. & Cent. America 272.8 14.8 13.0
Total Europe & Eurasia 2097.8 106.0 116.3
Total Middle East 2585.3 35.0 29.0
Total Africa 514.9 18.7 8.1
Total Asia Pacific 510.6 38.5 43.3
TOTAL WORLD 6263.3 289.7 287.2

SULAYMAN & HAMED PAGE 16

T
he world today consumes 287 billion cubic feet of gas that is
less than the consumption of petroleum in the world. This is
caused because the export value of gas is less than Petroleum
and for that reason the producer countries often burn off the surplus
gas or re-injecting it into the reservoir to increase the production of
Petroleum. Also we note its difficulty of transportation and storage
and its need for special equipment.

SULAYMAN & HAMED PAGE 17

Current Oil & Gas Consumers
The United States is the biggest consumer of
Oil and Gas in the world such that it
USA
consumes more than 25% of global 26%
consumption of petroleum and 23% of
global consumption of Gas. The United others
45%
States and China and Japan and India
and Russia and Iran are the biggest China
users of energy in the world and these 10%

countries utilize more than 58% of Japan

Global Energy. India 8%
5%
Germany
Russia
3%
3%

The following table clarifies the most important consumer of

petroleum and until the end of 2008 .

CONTRARY M BBL/DAY
USA 22546
China 8671
Japan 6937
India 4336
Russian Federation 2601
Germany 2598
South Korea 2371
Canada 2303
Brazil 2192
Saudi Arabia 2188
Others 29968
Total world 86716

SULAYMAN & HAMED PAGE 18

The following table clarifies the most important consumers of gas and
until the end of 2008.

Country B FT3/Day
USA 66
Russian Federation 45.9
Iran 11.1
Canada 9.3
United Kingdom 9.2
Japan 9
Germany 8
Italy 7.5
Saudi Arabia 7.4
China 6.5
other 107.3
Total world 287.2

USA
23%

other
48%
Russia
16%

Iran
UK 4%
3%
Canada
Japan
3%
3%

SULAYMAN & HAMED PAGE 19

 Consumption of Libya
ibya’s consumption of petroleum is 313 M BBL of oil Per

L day which makes 51st globally and 7th in the Arab nation
from the standpoint of consumption. It is a large number in
comparison with the population of Libya which is estimated at six
million. That is 20.1 barrels per capita per year
,This makes Libya the biggest consumer of
Petroleum per capita in Africa.
As far as its consumption of Natural gas it amounts to 1.4 billion
cubic feet of natural gas per day which makes it 118 th in the world and
8th in the Arab Nation. The consumption of gas in Libya is still little
compared with consumption of oil. This all goes back basically to the
fact that Libya has not began the production of gas as a basic source
of energy and it still depends on petroleum essentially which is the
opposite to the rest of the Arab Nation and Europe. This is because
the low export prices of natural gas and the high level of poverty in
the Arab nation. This makes gas a cheap source of energy compared
to Petroleum.

A Table showing the consumption of Oil and Gas in Libya until 2008

LIBYA OIL GAS

M BBL/DAY B FT3/DAY
PRODUCTION 1747.73 2.7
CONSUMPTION 313.14 1.4
EXPORT 1434.6 1.3

SULAYMAN & HAMED PAGE 20

Predicting of Oil & Gas Consumption
The global consumption of Petroleum will increase 5% during the
first quarter of the 21st century until it reaches 1.2 billion barrels per
day by the beginning gin the year 2025 and the global consumption of
natural gas will increase by 57% compared to the present which will
lead a big deficit in the quantities available and the continued rise in
the prices thinks to what energy companies will fail to meet the
increasing demand.
92000
Oil Consumption M Bbl/Day

91000

90000

89000

88000

87000

86000
OIL CONSUMPTION
85000
2008 2011 2014 2017 2020 2023 2026 2029 2032 2035 2038 2041 2044
Years

1800
Gas Consumption B CuFt/Day

1600
1400
1200
1000
800
600
400
200 GAS CONSUMPTION
0
2008 2011 2014 2017 2020 2023 2026 2029 2032 2035 2038 2041 2044
Years

SULAYMAN & HAMED PAGE 21

 The Factors that Cause Increase in
Consumption in the Coming Decades

1Increase in Global Population

The planet population increased from 2.5
billion in 1950 till it reached 6.8 billion for the
year 2008 and this was accompanied by the
migration of most of the planets population to
the cities and an increase in world trade and an
increase in individual income and an increase in the individual’s
consumption of energy.
The planet population will each more than 7 billion by the year
2012 and it will reached 9 billion by the year 2050 which will mean
an increase in Energy consumption.

2Rapid Economic Growth in the developing nations

The rapid economic growth of the developing
nations especially India China and Brazil amounts
to an important factor increasing the
consumption of oil and gas. The consumption of
petroleum in the developing nations will
increase by 96% by the year 2025 while the
consumption of natural gas by 13% and the consumption of
Petroleum will increase by 156% in China and India by 152% and the
cause of that because of the effort at nationalization of energy
resources very rapidly and because if the social and economic
progress and it should be remembered by 2015 China will have the
largest economy in the world. Its consumption will be greater than the
United States of America.

SULAYMAN & HAMED PAGE 22

 While India will become the second largest consumer of oil and
gas in 2025.

3Wars and Political Crises

Wars and Political Crises do not
last for a long time so their effect on
consumption will not last for weeks
or months. Since the Iraq Iranian
war in the year 1980 which lasted
for8 years until the year 1988. The
world has not held a war which
effected consumption.
If the United States launches a war on Iran, this war will have a
great effect on Global consumption of oil and gas as opposed to all
previous wars. This is caused because Iran can close the Hormuz
strait which are the only passage way that carries gulf crude and to a
reduction to Iran production of oil and Gas. Iran is China’s most
important supplies which is the works second largest consumer.
Thus we note that China reduced to vote in the Security Council
whenever America a tries to impose any punishment on Iran.

4The Economic Crises

The Economic Crises and global downturns have
an effect of the consumption of energy and the cause
being the psychological state of the consumer, when
the consume feels that there is an economic problem or
rising price it will reduce consumption by a great deal
because of the reduction by all vital sectors of its expenses and the
closing of a great deal of factories throughout the world all of which
will lead to a noticeable reduction in oil and gas. The economic crises

SULAYMAN & HAMED PAGE 23

will quickly affect the levels of consumption generally. This was clear
in the economic crisis of the late eighties s in the last century. The
world went through a period of economic downturn. Also the
financial problem though which the world is going through which we
have already dealt with earlier in the report.

5Natural Catastrophes
The climatic situation in the world and the change
that has taken place has contributed to the increase in
the consumption of oil and gas. The Katrina tornado
an others and earthquakes and natural disasters have
are all possible causes at any time which may lead to an increase in
the average consumption of petroleum globally, so that with the end
of the spring season and the beginning of the summers season
activities tropical storms to threaten offshore petroleum rigs in the
gulf of Mexico and on the eastern seacoast of the United States
Atlantic Ocean which may have an effect on the prices of Oil and
Petroleum and thereby its consumption.

SULAYMAN & HAMED PAGE 24

 The Problems that Face the World when
Consumption Increases in the Future

T
he latest discoveries of petroleum that are large were in the
sixties in the North Sea and on the Alaska slope and West
Siberia and since then there has been a decline in the new
petroleum discoveries.
But more important that was larger in the end of the sixties. At the
end of the sixties 500 new oil fields were discovered and in the
seventies more than 700 new fields were discovered. In the eighties
the number equaled 856 new fields and in the nineties 510 new oil
fields During the present decade however only 165 new fields were
discovered all smaller than previous discoveries, After both Indonesia
and Britain changed from producer countries to consumer the reserves
of the producer countries will decline, if production continues such as
Norway after 9 years and Mexico after 10 years and Brazil after
15years.

SULAYMAN & HAMED PAGE 25

F
rom another standpoint the planetary storage of energy and the
new discoveries cannot be expected to meet the increasing
global demand for petroleum.
If a state such as Saudi Arabia is capable of increasing daily
production from 1 to 12 or 15 million barrels per day then the other
producers of Petroleum such as Iran, Iraq, Kuwait, Nigeria, Russia,
and Venezuela are expected to maintain with difficulty on their
present production. This will mean a shortage in supply and an
increase in prices. For this reason most of the great countries are
depending more on natural gas that is being used to a larger decree in
a large number of industries because its reserve has not been exploited
yet and it discoveries continue to increase.

SULAYMAN & HAMED PAGE 26

What about Libya?
Libya produces approximately
1.7 million barrels of oil par day
during this year after it was
decided that production will
increase to 2 million barrels a day
however because of the
international crisis and the decision of
OPEC to reduce production the Libyan plan to
increase production of 3 million barrels a day by the year
2012 has been postponed.

But as far as gas then Libya will increase production of gas from
2.7 billion cubic feet to more than 3.8 billion cubic feet with the start
of the year 2014 and 2015 such that Libya becomes a major gas
producer.

In the framework’s of Libya plan to increase its production capacity

in Oil and Gas So that Libya began a new policy of contracting
through the tender sessions such that it offered areas are candidates
for oil and gas production in all the rich sedimentary basins of Libya
in four sessions in which international oil companies competed from
all the continents. As a result of this sessions there emerged new
discoveries of oil and gas finds.

SULAYMAN & HAMED PAGE 27

The following table clarifies the most important of these discoveries:

DATE OF PLACE OF TYPE OF

DISCOVERING COMPANY
DISCOVERY DISCOVERY DISCOVERY
29/4/2008 VERENEX ENERGY Ghadames Basin Oil & Gas
5/5/2008 RWA Sirte Basin Oil
7/10/2008 SIRTE Sirte Basin Oil & Gas
15/12/2008 ARABIAN GULF Murzuq Basin Oil
23/12/2008 AMERADA HESS Marine Zone Oil
15/1/2009 WOODSIDE ENERGY Ghadames Basin Oil & Gas
09/4/2009 REPSOL Territorial Waters Oil
13/4/2009 SONATRACH Ghadames Basin Oil & Gas

SULAYMAN & HAMED PAGE 28

E
xperts agree that Libya even if its oil reserve it will still be
difficult for it increase its oil production beyond the limit of 3
to 3.5 million barrels a day, The following figure shows the
increase in consumption even while production falls.

SULAYMAN & HAMED PAGE 29

 The Solutions to the Delay in Increasing in
Consumption

1New Petroleum discoveries

In spite in the decline in new discoveries there may be stores of
petroleum is still possible for example on the Libyan side. There is
still 35% of the Libyan Land not explored and there are still non
explored areas on the continent of Africa; because of the instability of
some African countries caused by Political and ethnic conflicts.
A Map showing unexplored countries in the Africa

2Guided Use of Energy

The problems of energy can be delayed by guiding its use, and
that by decreasing the annual increase in oil and gas production but
this means a decline in rapid economic growth in the world which is
rejected by the advance and industrialized economies.

SULAYMAN & HAMED PAGE 30

3The Transfer to the Gas
The world today is transferring to the gas
because the gas is cleaner source for energy
and also because of the great unexplored
reserves until now and gas will become the
most important source of energy in the year
2045. Large New gas reserves were found in Libya in the year 2006
by the Arabian Gulf Oil Company. Also Iran has modernized and
developed its gas fields and Qatar built the largest gas liquefaction
plant in the world.

4Using Alternative Energy

There are a large number of sources of energy in the
world which need development some of them renewable
energy sources such as Oil and gas which are non
renewable. Libya must move to other sources of energy
example solar Energy.

5 Development of Fields
The development of the oil fields is the most
important solution with an increase in the global
reserves such that most of the planet soil is
unconventional and needs special techniques of
enhanced recovery. And to use these methods the
price of the barrel of oil must reach to 120 to 145 USD so that
extraction is economic.

SULAYMAN & HAMED PAGE 31

 Unconventional oil
Tar sands, also referred to as oil sands or bituminous sands, are a
combination of clay, sand, water, and bitumen. Oil
which will not flow toward producing wells under
normal conditions, making it difficult and
expensive to produce.
Tar sands deposits are found in over 70
countries throughout the world, but three quarters
of the world's reserves are in two countries,
Venezuela and Canada.
While all conventional reserves-proven, unproven, and already
pumped-amount at upper estimates to 1.2 trillion barrels, it's thought
that another 3.5 trillion barrels can be extracted from unconventional
sources.

SULAYMAN & HAMED PAGE 32

 Appendix
DECIMAL SYSTEM

NUMBER OF ZEROS DECIMAL SYMBOL

3 thousand M
6 million MM
9 billion B
12 trillion T

UNITS

UNITS OIL GAS

Reserve BBL FT3
Production BBL/Day FT3/Day
Consumption BBL/Day FT3/Day

DEFINITIONS

Asia-Pacific

APAC is the area generally regarded as encompassing littoral East

Asia, Southeast Asia and Australasia near the Pacific Ocean, plus the
states in the ocean itself (Oceania).
Eurasia

Eurasia is the continents Europe and Asia combined. so for

example, Russia is in both Asia and Europe so you could just say it’s
in Eurasia.
Extra-Heavy oil Natural bitumen

Also known as "oil sands," bitumen shares the attributes of heavy

oil but is even more dense and viscous. Natural bitumen has a
viscosity greater than 10,000 cP.

SULAYMAN & HAMED PAGE 33

 Reference
 BP Statistical Review of World Energy/June 2008.
 World Oil and Gas Review 2005/PAOLO SCARONI/ENI
 Technical paper intermediate energy info book.
 World oil consumption per capita/GOOGLE EARTH.
 Key Economic & Monetary Indicators/NOC
 Is world oil production about to peak?/Randy Udall/Steve
Andrews
 World Political Affecting on oil price/DR.A.A.URAET/
Petroleum Seminar/AL FATEH UNIVERSITY/ 2007
 World Oil Reserves And Production/M. BELKHIER / E.
ARARA- Petroleum Seminar/AL FATEH UNIVERSITY/2008

WEB SITES

www.noclibya.com.ly www.nationmaster.com
www.theoildrum.com www.guardian.co.uk/
www.iecenergy.com www.eia.doe.gov
www.bp.com news.bbc.co.uk
planb.org/resources/beyondoil www.hart-isee.com
www.energyandcapital.com mwhodges.home.att.net

SULAYMAN & HAMED PAGE 34