ORIGIN AND OCCURRENCE OF OIL 55
of Saudi Arabia is also striking, with proven reserves estimated at
between 260 and 264 x 10
9
barrels in the past 18 years — a variation
of less than 2%.
2.6 Reserves
Furthermore, it is very rare that petroleum (the exception being tar
sand deposits) does not occur without an accompanying cover of
gas (Figure 2.2). It is therefore important when describing reserves
of petroleum to also acknowledge the occurrence, properties,
and character of the gaseous material, more commonly known as
natural gas.
At present, oil supplies approximately 40% (natural gas is 25%)
of the world's non-solar energy, and most future assessments indicate that the demand for oil will increase substantially. Predictions
of impending oil shortages are as old as the industry itself, and the
literature is full of arguments between optimists and pessimists
about how much oil there is and what other resources may be available. There are four factors that affect the economics of oil production and its use that need to be understood to assess the availability
of oil for the future:
1. The quality of the reserves
2. The quantity of the reserves
3. The likely patterns of exploitation of the resource over
time
4. Those who derive benefits from the oil.
The majority of crude oil reserves identified to date are located
in a relatively small number of very large fields, known as giants.
In fact, approximately three hundred of the largest oil fields contain
almost 75% of the available crude oil. Although most of the world's
nations produce at least minor amounts of oil, the primary concentrations are in Saudi Arabia, Russia, the United States (chiefly
Texas, California, Louisiana, Alaska, Oklahoma, and Kansas), Iran,
China, Norway, Mexico, Venezuela, Iraq, Great Britain, the United
Arab Emirates, Nigeria, and Kuwait. The largest known reserves
are in the Middle East.
The defining feature of global energy markets remains high and
volatile prices, reflecting a tight balance of supply and demand.
This has put issues such as energy security, energy trade, and
of Saudi Arabia is also striking, with proven reserves estimated at
between 260 and 264 x 10
9
barrels in the past 18 years — a variation
of less than 2%.
2.6 Reserves
Furthermore, it is very rare that petroleum (the exception being tar
sand deposits) does not occur without an accompanying cover of
gas (Figure 2.2). It is therefore important when describing reserves
of petroleum to also acknowledge the occurrence, properties,
and character of the gaseous material, more commonly known as
natural gas.
At present, oil supplies approximately 40% (natural gas is 25%)
of the world's non-solar energy, and most future assessments indicate that the demand for oil will increase substantially. Predictions
of impending oil shortages are as old as the industry itself, and the
literature is full of arguments between optimists and pessimists
about how much oil there is and what other resources may be available. There are four factors that affect the economics of oil production and its use that need to be understood to assess the availability
of oil for the future:
1. The quality of the reserves
2. The quantity of the reserves
3. The likely patterns of exploitation of the resource over
time
4. Those who derive benefits from the oil.
The majority of crude oil reserves identified to date are located
in a relatively small number of very large fields, known as giants.
In fact, approximately three hundred of the largest oil fields contain
almost 75% of the available crude oil. Although most of the world's
nations produce at least minor amounts of oil, the primary concentrations are in Saudi Arabia, Russia, the United States (chiefly
Texas, California, Louisiana, Alaska, Oklahoma, and Kansas), Iran,
China, Norway, Mexico, Venezuela, Iraq, Great Britain, the United
Arab Emirates, Nigeria, and Kuwait. The largest known reserves
are in the Middle East.
The defining feature of global energy markets remains high and
volatile prices, reflecting a tight balance of supply and demand.
This has put issues such as energy security, energy trade, and