Changing Patterns Of Oil Production And Consumption IB SL

Production In 2003, global oil production was at 70m barrels per day. 8 producers accounted for over 50% (USA, Saudi Arabia, Russia, Iran, China, Venezuela, Mexico, and Norway). Oil production is marginal or non-existent in many countries such as Africa.

Consumption 7 countries accounted for over 50% of global demand (USA, Japan, China, Germany, Russia, Italy, and France). Oil demand is roughly a function of population and level of development. Since 1965, oil consumption has nearly tripled. In 2006, demand was almost 84m barrels per day (70 in 2003). A significant share of new oil demand is assumed by Pacific Asian Nations going through rapid industrialisation such as China (2 nd after USA).

Oil Refining Over 80% of oil refining now takes place in Europe, North America, and Japan. The separation between production and refining causes problems for example oil was considered a cheap fuel and many countries became dependant on it. Due to the increase of oil prices, a lot of countries have had to reassess their energy policy.

Oil Reserves Found in various geological structures. Reserves could last for up to 40 years at present rates of production and consumption. 66% of the world’s reserves of oil are in the Middle East, followed by Latin America with 12.5%. The rest of the worlds reserves of oil are in the rest of the world.

Middle East Oil The importance of the Middle East as a supplier of oil is critical. The Organisation of Petroleum Exporting Countries (OPEC) controls the price of crude oil and this has increased its economic and political power. This provides an incentive for other countries to increase energy conservation or develop alternative forms of energy.

Countries Need To... Maintain good political ties with Middle Eastern countries and strive for political stability in the region. Involve the Middle East in Economic cooperation. Reassess coal and nuclear power as energy options.

Environmental Concerns Oil slicks. Damage to coastlines, fish stocks, and communities dependent on the sea. Water pollution caused by oil tankers. War damage (a cause for destruction).

Activity Using A2 Geography P answer the following questions... 1.What are the reasons for why oil is a vital world resource? 2.Explain the global importance of Saudi Arabia and the USA in connection with oil as a resource. 3.What are the environmental effects of the exploitation, transport, and use of oil?