World Oil Production & Consumption

INTRODUCTION:-

Oil is the major primary source of energy for Industrial Civilization ,

the first oil well began pumping in Titusville, Pennsylvania (U.S.A) , on
August 27, 1859, it supplied only 4% of world’s energy, then it became
the most important energy source .

Oil supplying world with approximately 40 percent of global energy due to

high level of consumption in developed countries and the dramatic
population and world growth .

Most of the remaining oil reserves are highly concentrated in countries

located in the Middle East, within former soviet union (FSU), and, to a
lesser degree in North and West Africa, making future oil even more of a
geopolitical issue than it is now.

The oil consumption is increasing more rapidly in most oil-exporting

nations in the world, it is probable that in the near future many countries
that currently export oil will no longer be able to do so.

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World Oil Reserves:-

The world oil reserves is about 1266 billion barrels in 2004 , OPEC
has about 69 percent of world proven oil reserves which equals about 870
billion barrels.

It's suspected that many OPEC countries pump-up their estimated reserves
because their production quotas are based on the size of the reserves. In 1988
and 1990, many Middle Eastern countries revised their reserves upwards
dramatically despite no major new discoveries, From 1986 to 2004, global
reserves increased a staggering 23 percent from 708 billion barrels to 870
billion barrels.

The world oil reserves changes began since 2003 and 2004 when IRAN
announced that proven oil reserve has an increment of 36 billion barrels.

OPEC countries, Saudi Arabia, Iraq, Algeria, Kuwait and Nigeria also
announced more increment in proven reserves.

In non-OPEC countries, Mexico has an increment in it's proven oil reserve.

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1266

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TOP 10 OIL RESERVES COUNTRIES IN THE WORLD AT 2004

Proved reserves
Rank Country )MMM barrels(
.1 Saudi Arabia 261.9
.2 Canada 178.8
.3 Iran 125.8
.4 Iraq 115.0
.5 Kuwait 101.5
.6 United Arab Emirates 97.8
.7 Venezuela 77.2
.8 Russia 60.0
.9 Libya 39.0
.10 Nigeria 35.3

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The Largest Oil Fields In The World

Field Country Reserve MMM Reserve by

BBL (%)
Ghawar Saudi Arabia 75-83 6-6.6

Burgan Kuwait 66-72 5.2-5.7

Cantarell Mexico 35 2.8

Bolivar Coastal Venezuela 30-32 2.4-2.5

Safaniya Saudi Arabia 30 2.4

Rumaila Iraq 20 1.6

Tengiz Kazakhstan 15-26 1.2-2

Ahwaz Iran 17 1.3

Kirkuk, Iraq 16 1.26

Marun Iran 16 1.26

Gachsaran Iran 15 1.18

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The Biggest Oil Companies by Reserves In The World

Company name Country Reserves (MMM

Bbl)

Lukoil Russia 17.360

Yukos Russia 17.281

Gazprom Russia 14.902

Exxon Mobil USA 12.312

Royal Dutch Shell UK/NET 9.469

Chevron Texaco USA 8.710

British Petroleum Amoco UK 8.376

Tyumen Russia 7.3

Total Fina Elf France 6.961

Surgutneftegas Russia 6.642

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World Oil Production:-

After the second world war the oil production increased and reached
58MM BPD in 1973, then 60 MM BPD in1990, the increment or
decrement in oil production depends upon the politics events such as
war, the world demand of oil and the population increment.

The global oil production now at 83 million barrels per day, Oil production
is marginal or non-existent in a large amount of countries, notably in
Africa, Eight producers, Saudi Arabia, the United States, Russia, Iran,
China, Venezuela, Mexico and Norway accounted for about 55% of the
global production.

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The Biggest Oil Companies by Production In The

Company name Country Production (MM Bbl/day)

Exxon Mobil USA 2,542

Royal Dutch Shell UK/NET 2,220

Chevron Texaco USA 1,959

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British Petroleum UK 1,931

Amoco

Yukos Russia 1,507

Total Fina Elf France 1,454

Lukoil Russia 1,200

ConocoPhillips USA 1,019

Surgutneftegas Russia 884

ENI Italy 857

History Of OPEC Production :-

The Organization of the Petroleum Exporting Countries(OPEC) is an

Organization, created at Baghdad Conference on 1960, by Iran, Iraq, Kuwait,
Saudi Arabia and Venezuela, The five Founding Members were later joined by
eight other Members: Qatar(1961), Indonesia (1962), Libya (1962), United
Arab Emirates (1967), Algeria (1969), Nigeria (1971), Ecuador and Gabon .

OPEC's objective is to co-ordinate and unify petroleum policies among

Member Countries, in order to secure fair and stable prices for petroleum
producers.

-: History Of non-OPEC Production

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Non-OPEC countries (countries are not members in OPEC).

Non-OPEC production as a share of world total oil production reached a

high of 71 percent in 1985 and a low of 48 percent in 1973.

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Distribution of Production between OPEC & non-OPEC

by 2004:-
OPEC Oil Production (MMBPD)(2004)
Saudi Arabia 10.584
Iran 4.081
Venezuela 2.980
United Arab Emirates 2.667
Nigeria 2.508
Kuwait 2.424
Iraq 2.027
Algeria 1.933
Libya 1.607
Indonesia 1.126
Qatar 0.990
Total OPEC 32.927

Non-OPEC Oil Production (MMBPD)(2004)

Russia 9.285
United states 7.241
Mexico 3.824
China 3.490
Norway 3.188
Canada 3.085
united kingdom 2.029
Brazil 1.542
Kazakhstan 1.295
Angola 1.159
Other 11.195
Total non -OPEC 47.333

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MMBBL/D

10
12

0
2
4
6
8
Russia
SAUDI

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UnitedState
Iran

Mexico
Venezuela

OPEC
China
Emirates
World Oil Production & Consumption

Norway
Nigeri

canad
Kuwa a

UK
Iraq

brazil
Algeri
a
kaza

NON-OPEC
Libya
Opec & Non Opec Cuntries Production In 2004

Angola
Indonesi
a
Other
Qatar
 World Oil Production & Consumption

4002 -noitcudorp fo noitubirtsid

cepo -non
%79.85 cepo
%30.14

cepo -non cepo

-:World Oil Consumption

Now we are finding only one barrel of new oil for every five barrels that we
.consume, the main World oil demand countries are china, India & U.S.A

Seven countries, the United States, Japan ,China, Germany, Russia, Italy
.and France are accounted for 52% of the global oil demand

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noitpmusnoc lio dlrow

%08.92 %09.82
%04.52

%07.6 %09.5
%03.3

musnoc
htron aisA& eporuE elddiM .tnec&.S acirfA
aciremA aisaruE tsaE aciremA

tnecrepnoitp

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Main Consumers:-
main consumers-2004
42.10%

consumption percent
24.90%
18.40%

8.20%
6.40%

united european china Japan Rest of

states union world

Top Of World Oil Consumers at 2004

 Consumers Total Oil Consumption

(MM BPD)
United States 20.517
China 6.648
Japan 5.288
Germany 2.625
Russia 2.574
India 2.555
South Korea 2.28
Canada 2.206
France 1.975
Mexico 1.896
Italy 1.871

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U.S.A is the main consumer, it consumes 25 percent of daily world oil

production ,having less than 5 percent of the world's population.

The U.S.A imports about 60 percent of its oil need ,the sources of U.S.A
imports are(Saudi Arabia, Venezuela, Canada, Mexico, Iraq, and Nigeria).

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Future Oil Production Trends:-

Future Oil Production By Region

Peak oil production MMBPD

Region
Year Peak 2004 2040

North America 1985 15.3 14.1 2.5

So. & Cent. America 2005 7.4 6.7 3.3

Europe 2000 6.6 6.1 1.1

Former Soviet Union 1987 12.6 11.4 3.8

Middle East 2011 33.2 24.5 15.9

Africa 2004 9.0 9.0 2.5

Asia Pacific 2002 7.9 7.9 2.5

WORLD(44COUNTRIES) 2006 84.9 80.2 31.5

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32
World Peak 2006

1997
P ro d u c tio n G b /Y r

OPEC/non-OPEC
crossover point
2007
16

0
1960 1980 2000 2020 2040
Year

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Future Oil Consumption Trends:-

From now to 2025, world oil consumption will rise by about 44%.per
year, The Problems of oil consumption in the future revolve around two
factors:-Population and the increasing use from developing countries.

The two countries with the highest rate of growth in oil use are China and
India, whose combined populations account for a third of humanity. In the
next two decades, China's oil consumption is expected to grow at a rate of
7.5% per year and India’s 5.5%.

The oil consumption in China at 2010 could be 13 million barrels a day

rather than 7.8 million barrels a day at 2006 .

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Current & Future Factors Affecting Production & Consumption:-

1- Economic growing.
2- Technology.
3- remaining oil reserves.
4-Demand.
5- The increment of strategic reserves.

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6- Oil prices and political reasons.

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Unconventional Oil (Tar Sand , Heavy Oil and Oil Shale):-

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 regions, Venezuela and
Alberta, Canada, unconventional sources-tar sands in Western Canada,
Venezuela, and oil shale in the U.S.A, Brazil ,democratic Congo, India, and
many other countries-will likely become major producers of oil by the mid-
2Ist century, While all conventional reserves-proven, unproven, and already
pumped-amount at upper estimates to 2.5 trillion barrels, it's thought that
another 3.5 trillion barrels can be extracted from unconventional sources.

Many resources in Venezuela and Canada estimated the tar sand oil and
heavy oil reserves about 3.5 to 4.5 trillion barrels of OIIP.

The technologies of SAGD (stem assisted gravity drainage ) and CHOPS

(cold heavy oil production with sand ) have been the major directions of
technical activity in Canada whereas in Venezuela.

we will compare between Canadian deposit(Alberta) and Faja de Orinoco

deposits in Venezuela with the heavy oil built the extra-heavy crude oil
deposit of the Orinoco Belt represent nearly 90% of the known global
reserves of Tar sand oil.

In Venezuela the major developments are the four Orinoco projects ,three of
them operated by American companies Exxon Mobil, Phillips and Texaco
and Conoco. and The investments of these projects about 14 billion $ and
will produce 700,000 b/d of crude oil by the year 2006 -2007.

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Comparison between LUSELAND and

FAJA

RESERVOIR&FLUID LUSELAND FAJA

CHARACTRISTICS
Depth, ft 2394 1476-2132
Avg. Porosity, % 30 31
Sw, % 28 14
Permeability, D 2-4 5-15
Thickness of each sand body, ft 10-50 20-80
API 11-13.4 8-10
Viscosity, cp 1400 1000-5000

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References:-

http://WWW.BP.COM

www.SPE.COM

WWW.EIA.COM

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