Global Sources of Oil

 Kyle Solberg solberkr@uwec.edu
Part of Iraq & Our Energy Future, by students of
Geography 378 (International Environmental Problems & Policy)
at the University of Wisconsin-Eau Claire, USA, Spring 2003.

     

    Petroleum (oil) is a naturally occurring oily liquid composed of various organic chemicals. It is estimated that 40% of the worlds total primary energy demand is fulfilled by oil. It is most widely used as an energy source for industrial, commercial, governmental/military and residential uses.

    Total World Reserves

    The total amount of oil in the world is estimated at 4 trillion barrels. Of this total, experts estimate that approximately half is recoverable. These same experts estimate that 465 billion barrels of oil have already been consumed. The current rate of consumption around the world is 22 billion barrels per year. At this rate, the world has about 45 years left to enjoy the luxuries that oil provides. Once world oil reserves becomes depleted, companies may look into the estimated 800 billion barrels which remain to be discovered, or are not recoverable with our current technology (Environmental Science, A Global Concern). Some prospective drilling sites where oil companies are researching are located in Alaska and the Caspian Basin. A large potential for liquid hydrocarbon resources, including shale oil and tar sands, exist mainly throughout North America.

    Proven World Oil Reserves 2001

     

    Middle East and Africa

Persian Gulf countries in the Middle East contain almost two-thirds of the world's proven oil supplies. In fact, 7 of the top 10 countries who lead the world in oil reserves are from this region (Third World Traveler-Middle East). The leading country is Saudi Arabia, with 25.3% of the total. Oil was discovered in the nation's capital of Riyadh in the 1930s. This discovery turned the old provincial town into a modern, urban city. As a whole, the growth of the oil economy has encouraged migration to the Middle East and Northern Africa, especially during the past 50 years. Iraq, only second to Saudi Arabia in total world reserves, currently owns approximately 112 billion barrels of oil, which accounts for 9.5% of the world total.

At one point, Kuwait had more than 10% of the world's total oil reserves. However, since Iraq invaded Kuwait in the Gulf War of 1990, nearly 5 billion barrels of oil were burned or spilled.

International Environmental Problems & Policy - Fossil Fuels

This brought Kuwait's total share down to 9.5% or 96 billion barrels. The United Arab Emirates owns slightly over Kuwait's total share, with 96.2 billion barrels. About 90% of the country's reserves are in its capital city of Abu Dhabi (UAE Oil and Gas). Iran is also a world leader with 9% of the global proven oil reserves. A few other Middle Eastern and Northern Africa countries that are in the top twenty in the world for proven oil reserves are Libya with 29.5 billion barrels, Nigeria with 24 billion barrels, Qatar with 15.2 billion barrels, Algeria with 9.2 billion barrels, Oman with 5.5 billion barrels and Angola which has 5.4 billion barrels of proven oil reserves. New offshore discoveries in Nigeria are likely to bring their total amount from 24 billion barrels to 30 billion barrels. All of the crude oil in Nigeria is located in swamps in the Niger Delta, where there are about 660 small oil fields (Viaton).

 

Latin America

The earliest oil booms in Latin America occurred in Mexico's Gulf Coast. Around the same time, Venezuela discovered oil reserves around Lake Maracaibo, which accounts for 4% of the world's oil reserves. Both of these countries are included in the top 20 of the world's proven oil reserves. Mexico holds 4.9% of the world's oil whereas Venezuela has 7% of this total. Venezuela is one of the founding members of OPEC (Organization of Petroleum Exporting Countries). OPEC currently accounts for approximately 63% of the worlds proven oil reserves. It does not, however, include major producers such as Mexico and Russia.

The Organization of Petroleum Exporting Countries

Environmental pollution has been a serious problem in all of the oil regions in Latin America. Waterways have been contaminated with oil waste in countries such as Ecuador and Colombia. In addition, there has been widespread ecosystem damage, as well as serious health concerns for locals. Venezuela is one of the United States' largest oil producers, making up 13% of total imports (RIGZONE). Some of the most recent oil developments in South America are located in the Amazon. Amazon oil deposits are generally located in remote forested areas. The discovery of oil in this region has led to the degradation of forests in Peru, Ecuador and Colombia. Rebels and government troops have fought over the income from oil pipelines, and many pipelines have been bombed. This has also resulted in several conflicts between Peru and Ecuador as well as governments, corporations and indigenous groups in the Amazon. Brazil has 8.4 billion barrels of reserves, which ranks them 16th in the world (Third World Traveler-Brazil).

 

The map below shows the areas of oil exploration and production in the Amazon region of eastern Ecuador.

International Environmental Problems & Policy - Fossil Fuels
The picture below shows indigenous people of Ecuador protesting the government's proposal for new oil development in a large area of the Amazon. In the 30 years of oil exploration in Ecuador, great environmental damage has been caused, including oil spills into rivers that surpass the Exxon Valdez spill.

 
The Advocacy Project

Southeast Asia

Southeast Asia accounts for 5% of the global oil production. Indonesia, Malaysia and Brunei are the most important producers of oil in the region. Indonesia ranks 20th in the world for total oil reserves with 5 billion barrels. The majority of it is found off the coasts of Borneo, Sumatra and Java. The small nation of Brunei is one of the wealthiest countries in the world due to its reliance on oil profits (World Regions in Global Context). Oil was discovered in the western part of the country in the 1920s, and in the 1960s, the country began exploring the possibility of oil offshore. Ever since then, the economy has been thriving on oil.

Brunei

Russia, Central Asia and the Caspian Basin

Due to Russia's enormous size, it controls 49 billion barrels of oil (Energy Division-Russian Oil). Western Siberia is thought to supply Russia with two-thirds of its oil. Russia has enough oil to keep its production going for 40 more years at current extraction levels. The Tengiz oil field in Kazakhstan, which is one of the 10 largest in the world, is estimated to have anywhere from 6 to 9 billion barrels of reserves. The Karachaganak field has about 2.2 billion barrels. In addition, there have been recent hydrocarbon discoveries in the offshore site of Kashagan. This is estimated to be 3 times larger than the Tengiz oil field (U.S.-Kazakhstan Business Association). In addition to Kazakhstan, Azerbaijan is estimated to have close to 1 billion metric tons of oil (Welcome to Azerbaijan).

Reservoirs in the Caspian Basin are expected to hold 200 billion barrels of oil. If this is the case, it would be second in size to Saudi Arabia. The region has the possibility to increase world supplies by 25% or 10 years. There is however much debate to which countries the pipelines would run through. There are three proposed routes which include sending it north through Russia, east though the Caucasus to Turkey, or south through Iran. The shortest and cheapest route for a pipeline is through Iran. The United States is opposed to this because of Iran's Islamic government, and the vulnerability of the Persian Gulf. The route through Russia would increase Moscow's economic power and force tankers to pass through the Bosporus and Dardanelles straits. Turkey is worried that oil tankers may crash into the shore of these congested straits, creating an environmentally damaging oil spill. The route through the Caucasus also has its detractors. The pipeline would be running through a region where ethnic feuds have been plentiful (Infoplease-Caspian Sea).

The map below depicts the proposed pipelines, existing pipelines as well as major oil fields around the Caspian Sea.

Virtual Kazakhstan

For more information on oil in the Caspian Sea visit Caspian Basin Alert the Fall 2002 website of our "International Environmental Problems & Policy" course.

 

North America

The United States has already used 40% of its estimated 200 billion barrels of recoverable oil. There are some regions in the United States that are believed to have oil. These are along the California coast, the Beaufort Sea and the Grand Banks. Unfortunately all of these places have a plethora of thriving wildlife and coastal communities. Oil companies have directed their attention to the vast deposits of oil shale. Oil shale is fine-grained sedimentary rock, rich in solid organic material (kerogen). These deposits are located in the Green River Formation in Wyoming, Utah and Colorado. In the eastern United States, lower-grade oil shale deposits are present. The only problem with extracting these deposits is the cost and possibility of environmental damage.The oil shale deposits may yield the equivalent of several trillion barrels of oil. However, these issues must be solved before any mining is completed (Environmental Science, A Global Concern).

Liquid petroleum can be extracted from tar sands, which Canada is expected to have 270 billion cubic meters of. The majority of these tar sands are in Northern Alberta. "The oil content of Canadian tar sand is thought to be 40 times as much as Alaska's 1002 field (Environmental Science, A Global Concern)." The only problem is that extracting this tar sand creates great amounts of contaminated water.

The United States is exploring the possibility of drilling for oil on the northern tip of Alaska's Arctic National Wildlife Refuge (ANWR). Estimates of recoverable oil in the area vary from 2 to 15 billion barrels. The map below shows the ANWR in Alaska and the village that would be affected.

 

BBC News-ANWR Oil

The ANWR is one of the most beautiful places in North America. It is thought that drilling for oil in this region would cause ecological damage. This has been cause for opposition by environmental groups and local Gwich'in Indian villagers. The local village has a history of living off the animals that inhabit the ANWR. The Gwich'in say, "the animals provide almost all of their meat but the proposed oil drilling would take place in the heart of the caribou calving grounds." President Bush has been a strong supporter of oil drilling in the area but the U.S. Senate voted against drilling. Bush believes that America needs to increase its domestic energy supply so we de not have to rely on imported oil from various nations. Environmentalists say that the U.S. needs to begin producing more fuel efficient cars in order to cut down on our foreign oil dependency (BBC News-ANWR Oil).

Conclusion

There are oil reserves located throughout the world in a variety of countries. The Middle East region dominates all others with the greatest supply of oil, most of which supplies Europe and Japan rather than the U.S. Regardless of where the oil is located, concerns of environmental effects are present. With hopes of improving the world's technology, future oil sites may offset depleting oil reserves already in existence. Conservation is another answer, particularly since the global reserves will be gone within 45 years if current consumption continues.