World Oil Production Petroleum Seminar

Contents
 Introduction.

 History of oil industry.

 World oil reserve/ major countries.

 World oil production/ major countries.

 Historical Table and plots of major oil producing countries.

 Distribution of gas consumption.

 World major gas pipelines.

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World Oil Production Petroleum Seminar

Introduction
Slightly over I trillion barrels in proven
reserves exist around the world. Forecasting
future discovery is tricky at best, but
perhaps another half-trillion barrels of oil in
undiscovered conventional reserves remains
hidden.

Just five countries in the Middle East sit

on top of nearly two-thirds of the proven oil
reserves in the world.

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, to a lesser degree in North and West Africa,
making future oil even more of a geopolitical issue than it is now.

World oil reserves are about 1237 Billion barrels in April 2009 the
largest percent in Middle East ,and more than 76% of reserves are
concentrated in OPEC countries.

World oil production is about 71.87 Million barrels per day in may
2009; More than 47.5% percent are producing by five countries (Russia,
Saudi Arabia, USA, Iran, and China). and more than 45% percent are
producing by OPEC countries.

The top three oil producing countries are Saudi Arabia, Russia, and the
United States About 80% of the world's readily accessible reserves are
located in the Middle East, with 62.5% coming from the Arab 5: Saudi
Arabia, UAE, Iraq, Qatar and Kuwait..

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History of oil Industry

Since the first oil well began pumping
in Titusville, Pennsylvania on August 27,
1859, some 900 billion barrels of oil
have been sucked out of the earth.

In 1861 First recorded shipping of oil

between countries from Pennsylvania to
London on sailing ship.

In 1908 Oil discovered in Persia (Iran),

in 1914 World War I, The first conflict where control of oil , in 1918
supply really mattered – needed for tanks, ships and planes.

In 1933 Saudi Arabia granted oil concessions to standard of California

became California Arabian Standard Oil Company (CASCO).

In 1939 Oil discovered in Kuwait and Saudi Arabia, and in 1945 World
War II, control oil supply from Baku and Middle East played a huge role
in the events of the war and the ultimate victory of the allies. Cutting off
the oil supply considerably weakened Japan in the latter part of the war
1942 Japan invaded Indonesia for access to their oil reserves.

In 1948 Ghawar field discovered in Saudi Arabia (the largest

conventional oil field in the world).

In 1955 Oil exploration in Libya began and the first oil fields were
discovered in 1959(At Amal and Zelten – now known as Nasser), and oil
exports began in 1961. In the same year
1955 Egypt nationalized the Suez Canal
(That control of the oil transportation
from Arabian Gulf to the Europe), then
U.K, France and Israel attempted to
regain control of Suez Canal.

In 1960 OPEC (Organization of

Petroleum Exporting Countries) founded
in Baghdad (Saudi Arabia –Venezuela –
Kuwait –Iraq –Iran).

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In 1961 Libya has joined to the OPEC, in 1969 Oil discovered in North
Sea, in 1970 The effects of the leading decision of revolution of
September to nationalization the petroleum companies in Libya.

In 1971 USA oil production peaked, in 1973

Egypt and Syria attacked Israel Arab oil
embargo oil exports to the U.S.A for siding with
Israel in this war, oil prices rise from 3 $/bbl to
13$/bbl.

In 1975 First oil production from North Sea, in

1980 Iraq invaded Iran; the combined production of both countries was
only a million barrels per day and the prices peaked at the beginning of
the decade, in 1986 Oil prices collapse due to the accumulation of oil
cargos due to the increase of OPEC oil production which reached at that
time (20MMB/D)in desperate action to cover the war's losses ,led the
price of Saudi light crude to go down from 27$/bbl to 13 $/bbl for the
first time since1973.

In 1990 Iraq invades Kuwait, UN embargo on Iraq and in 1991 Soviet

Union collapses and in1995 UN resolution to allow partial resumption of
Iraq oil exports in "oil for food" deal

In 1998 The rapid growth in Asian economies had been halt, in 1999
US Sanctions against Libya lifted.

In 2001 The attacks on World Trade Centre

(WTC) building in United States (September
11th attack).

In 2003 USA led invasion of Iraq begins - to overthrow Saddam

Hussein and prevent the spread of Weapon mass Destruction (WMD's).

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In 2006 Lebanon & Israel wars in 2006 effected in the oil production in
the world.

In 2008 Israel invades Gaza in December

2008 and effected in oil exports, and at the end
of year emergence of the global Economic
Crises , 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.

In 2009 Barack Obama is inaugurated as the

44th, and first African American, President of
the United States, and Mahmoud Ahmadinejad
re-election demonstrations against him and
suppressed and the position of the international
community.

In October 2009 crisis of Dubai World, financial and re-schedule loans

bankruptcy of General Motors and Chrysler)
Dubai World has failed to pay its debts,
estimated to be worth $ 59 billion, and asked
the creditors granted a new deadline for
repayment period of six months, which created
a crisis that spread effects to the various parts
of the world and named the Dubai financial
crisis.

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Peak Oil
Peak oil is the point in time when the maximum rate of global
petroleum extraction is reached, after which the rate of production enters
terminal decline. The concept is based on the observed production rates
of individual oil wells, and the combined production rate of a field of
related oil wells. The aggregate production rate from an oil field over
time usually grows exponentially until the rate peaks and then declines
sometimes rapidly until the field is depleted, and has been shown to be
applicable to the sum of a nation’s domestic production rate, and is
similarly applied to the global rate of petroleum production. Peak oil is
often confused with oil depletion; peak oil is the point of maximum
production while depletion refers to a period of falling reserves and
supply.

Oil Depletion
Oil depletion occurs in the second half of the production curve of an oil
well, oil field, or the average of total world oil production. The peak
theory makes predictions of production rates based on prior discovery
rates and anticipated production rates. curves predict that the production

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curves of non-renewing resources approximate a bell curve. Thus, when

the peak of production is passed, production rates enter an exponential
decline.

The American Petroleum Institute estimated in 1999 the world's oil

supply would be depleted between 2062 and 2094, assuming total world
oil reserves at between 1.4 and 2 trillion barrels and consumption at 80
million barrels per day, In 2004, total world reserves were estimated to
be 1.25 trillion barrels and daily consumption was about 85 million
barrels, shifting the estimated oil depletion year to 2057, The United
States Energy Information Administration predicts world consumption of
oil will increase to 98.3 million barrels per day in 2015 and 118 million
barrels per day in 2030.

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World Oil Reserves/Major Countries

Oil reserves are primarily a measure of geological and economic risk -
of the probability of oil existing and being producible under current
economic conditions using current technology.
Table(1) World Oil Reserve in the end of 2009 By Region.
REGIONS RESERVE (B BBL)
Total North America 69
Total S. & Cent. America 111
Total Europe & Eurasia 143
Total Middle East 756
Total Africa 117
Total Asia Pacific 41
TOTAL WORLD 1238

Total Asia Pacific Total North America

Total Africa 3% 6%
9% Total S. &
Cent. America
9%

Total Europe
& Eurasia
12%

Total Middle East

61%

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Table(2) World Oil Reserve in the end of 2009 By countries.

Reserves Reserve Life
Country
B BBL Years
Saudi Arabia 267 72

Canada 179 149

Iran 138 95

Iraq 115 150

Kuwait 104 110

United Arab Emirates 98 93

Venezuela 87 88

Russia 60 17

Libya 41 66

Nigeria 36 41

Nigeria
Libya
3%
Russia 4%
5%

Saudi Arabia
Venezuela 24%
8%

United Arab Emi-

rates
9%

Canada
Kuwait 16%
9%

Iraq
10% Iran
12%

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Biggest oil fields in the world By Reserve

1) GHAWAR Oil Field

Ghawar is an oil field in Saudi Arabia. It is

located about 100 km from the city of
Dhahran in Khobar county of the Eastern
Province, it is by far the largest conventional
oil field in the world, the field is entirely
owned and operated by Saudi Aramco.

2) BURGAN Oil Field

The onshore Burgan Field in the desert of

southeastern Kuwait is one of the world's
largest and richest oil fields, After its
discovery in February, 1938, the USA &
UK owned Gulf Oil Corporation began
commercial oil production at Burgan in
1946. Kabeer Burgan is so rich that it is one
of the world's easiest production sites. There
are no rising and falling oil derricks at Burgan like the ones seen at
other oil fields.

3) Carioca/Sugar Oil Field

The Carioca/Sugar Loaf field is a potential deepwater oil field in

the Atlantic Ocean off the coast of São Paulo, Brazil. The field is
possibly part of an important emerging petroleum basin known as
the Santos Basin. Two other large oil fields have been discovered in
this basin in 2007 and 2008, the Tupi and Jupiter fields. The
condition and size of the Carioca/Sugar Loaf field has yet to be
clarified, however there is speculation that it could contain between
25 and 40 billion barrels.

4) CANTARELL Oil Field

Cantarell Field or Cantarell Complex is the largest oil field in

Mexico and one of the largest in the world. It was discovered in
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1976 by a fisherman, Rudesindo Cantarell. It was placed on nitrogen

injection in 2000, and production peaked at 2.1 million barrels per
day in 2003. Production declined rapidly after that, and by 2009 had
fallen to 772,000 barrels per day ,making it Mexico's second largest
oil field after Ku-Maloob-Zaap. In November 2006 Pemex reported
that Cantarell had produced 11.429 billion barrels of oil.

5) BOLIVAR COASTAL Oil Field

Bolivar Coastal Field is the largest oil field in South America with
its 6,000-7,000 wells and forest of related derricks, stretches thirty-
five miles along the north-east coast of Lake Maracaibo, Venezuela.

Discovered in 1917, the Bolivar Coastal fields produce from wells

on platforms in the shallow lake. The field is thought to have a total
of approximately 30-32 billion barrels of oil.

The field produces between 2.6 million barrels per day and

3 million barrels per day, Portions of the oil field have already been
fully depleted.

6) AZADEGAN Oil Field

Azadegan field is a Iranian oil field. It was discovered in 1999.

Iranian authorities claims that Azadegan field has oil-in-place
reserves of about 26 billion barrels and recoverable resources
estimated at about 6 billion barrels. This size of reserve isn't big, for
middle east oil fields. Even so, this is the biggest oil field found in
Iran, in the last 30 years.

Biggest Libyan oil field

The Sarir Field was discovered in southern Cyrenaica during 1961 and
is considered to be the largest oil field in Libya, with estimated oil
reserves of 12 Gbbl, Sarir is operated by the Arabian Gulf Oil Company
(AGOCO), a subsidiary of the state-owned National Oil Corporation
(NOC).

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Biggest Oil companies By reserve

Saudi Aramco is the biggest company in the world have a reserve
because, it’s the operator company of Ghawar Field the biggest oil field
in the world.

Company Total Reserves (MM BBL)

Saudi Aramco 303

National Iranian Oil Company 300

Qatar Petroleum 170

Iraq National Oil Company 134

Petróleos de Venezuela 129

Abu Dhabi National Oil Company 126

Kuwait Petroleum Corporation 111

Nigerian National Petroleum Corporation 68

Libya NOC 50

Sonatrach 39

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World Oil Production/Major Countries

World crude oil production is about 72.89 MM BBL/Day at the
end of 2009. (Russia, Saudi Arabia, USA, Iran, and China). combined
account for about 47.7% of the World crude oil production.

Oil production
Rank Country
(MM BBL/Day)
1 Russia 10.31
2 Saudi Arabia 9.19
3 USA 7.89
4 Iran 4.05
5 China 4.11
14 Libya 1.72
Rest of the World 35.62
Total World 72.89

Russia
14%

Saudi Arabia
13%
Rest of the World
49%

USA
11%

Iran
China 6%
6%

Libya
2%

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World Oil Production History Curve

12000.0

10000.0
Oil Production (M B/D)

8000.0

6000.0

4000.0

2000.0
1965 1969 1973 1977 1981 1985 1989 1993 1997 2001 2005 2009
Years

Rebuilding of Europe after the 2nd world war, Oil becomes the
main energy sources substitute the coal, and increase in oil demand
in the countries which independence at that time effected in world
oil production curve from 1954 the end of world war to the
October war in 1973, in 1973 production is decrease because the
October war and Arab nation decrease the production of oil to
support Egypt.

Between 1974 and 1979 Increase in production due to the

biggest countries start in strategic reserves program than the curve
was decreased six years to 1986 due to Iran revolution and Iraq-
Iran war.

From 1986 to 1998 Arabic countries Increase in production to

compensation losses of Iraq-Iran war, and south-east Asia crisis
(Tigers crisis) , from 2002 to 2008 Increase in production to cover
the world oil demand, in 2009 the economic crises effected on the
oil production curve by decreasing production due to shrinkage in
the demand.

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Distribution of Gas Consumption

Natural gas is a blend of gaseous
hydrocarbons, mostly methane (CH4),
found beneath the Earth's surface. While
there is variation in the composition of
natural gas, methane generally accounts
for 70% to 90% of the mixture, with the
remainder consisting of a variety of
hydrocarbons and hydrogen sulfide. Natural gas is extracted at
wells and transported by pipelines to processing facilities and
ultimately to end users, generally the buildings, industry, and
electricity sectors. Unlike other fossil fuels, its use requires
infrastructure that is used only for the transport of natural gas.

While the origins are not known with certainty, and there is
some variation in the geologic history of different reserves,
scientists generally believe that gas is formed over millions of
years from organic matter, usually from former marine or
coastal ecosystems. Organic matter from ecosystems became
covered in layers of mud and other sediments, and as more mud
and other sediments piled on top of the organic matter, the
pressure and temperatures increased. This pressure and
temperature increase is thought to cause the organic materials to
slowly transform into natural gas and oil. Because of its low
density, once formed, it tends to rise towards the surface of the
earth through fissures and pores, but may become trapped under
less permeable rock layers.

The following map shown the distribution of gas consumption

by countries in cubic feet

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The 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.
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, 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, Also Iran has modernized and developed its gas
fields and Qatar built the largest gas liquefaction plant in the
world.

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After processing, gas is either piped to consumers, or liquefied

and transported by ship. Pipeline energy use is about 0.6 EJ per
year in the U.S., about 2.6% of the total consumption of natural
gas. Some 6% of the gas pipelines in the U.S. are powered by
electric motors, but for the most part, the fuel being transported
is used to fuel the transportation.

World Major Gas Pipelines

North Sea

Canada UK Russia

USA
Spain
Italy
Turkey
Iran
Algeria LibyaEgypt
Mexico Myanmar

Thailand
Singapore

Indonesia
Bolivia Brazil
Australia

Chile
Argentina

Major Natural Gas Pipeline

Major gas pipelines in Europe

Nord Stream

Nord Stream (former names: North Transgas and North European Gas
Pipeline; also known as the Russo–German gas pipeline, the Baltic Sea
gas pipeline, is a planned natural gas offshore pipeline from Vyborg in
Russia to Greifswald in Germany by the company Nord Stream AG.

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The plan for the offshore pipeline is to build two parallel legs each with
capacity of 27.5 billion cubic metres
(bcm; km³) per year. The diameter of the
pipe will be (48 in) .

The first leg of the pipeline is to be

built in 2010–2011 and the second one
in 2011–2012. The first gas delivery is
scheduled for late 2011. When finished, it will be the longest sub-sea
pipeline in the world.

Russia Ukraine -west Europe gas pipeline

Gas pipeline between Ukraine oil and gas and Russian gas
company ,constructed in march 2005 Natural gas supplier in numerous
European countries depend on
Russian gas transport through
Ukraine Russian provide about qurter
of natural gas consumed in
European union , Ukraine transport
about 80% of Russian gas going to
European countries.

Russia Ukraine gas pipeline has capacity of 120 billion cubic feet per
year ,the total length Russia Ukraine gas pipeline is 283000 km .

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Major gas pipelines in Africa

Western Libyan Gas Project

The Western Libyan Gas Project (WLGP) between the Libyan
National Oil Corporation (NOC) and the Italian company Eni which came
online in October 2004. By July 2007, 280 billion cubic feet per year of
natural gas was being exported from a processing facility at Melitah, on
the Libyan coast, through the Greenstream pipeline to Sicily. From
Sicily, the natural gas travels to the Italian mainland, and then to the rest
of Europe. WLGP is the first major project to valorize the natural gas
produced in Libya through export to and marketing in Europe. WLGP is
supplied from production at the Bahr Essalam and Wafa fields, which is
processed at the onshore Mellitah treatment plant.

Maghreb–Europe Gas Pipeline

The Maghreb–Europe Gas Pipeline is a natural gas pipeline, which

links the Hassi R'mel field in Algeria through Morocco with Cordoba in
Andalusia, Spain, where it is connected with the Spanish and Portuguese

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gas grids. It supplies mainly Spain and

Portugal, as well as Morocco with natural gas.
The pipeline (1,010 mi) long and it cost
US$2.3 billion. I was built by Bechtel and
Saipem. The pipeline consists of five sections.
The pipeline's Algerian, Moroccan and
Andalusian sections are 48 inches in diameter;
and the underwater sections consist of two 22-
inch (560 mm) lines.

An initial capacity of the pipeline was 8.6 billion cubic meters (bcm) of

natural gas per year, which was later expanded to 12 bcm. operated by the
Algerian energy company,

Arab Israel gas Pipeline

Arab Israel is a pipeline that exports Egyptian natural gas to Israel, The
Arish–Ashkelon pipeline is a 100 kilometres submarine gas pipeline
connecting the Arab Gas Pipeline with Israel,The pipeline is built and
operated by the East Mediterranean Gas Company (EMG), a joint
company of Egyptian General Petroleum Corporation (EGPC ), the Israeli
company Merhav as well as Ampal-American Israel Corp. The pipeline
became operational in February 2008. Initially Egypt and Israel had
agreed to supply through this pipeline 1.7 bcm of natural gas per year for
use by the Israel Electric Corporation This has since been raised to
2.1 bcm per year to be delivered through the year 2028.

Major gas pipelines in north America

Alaska gas Pipeline

The Alaska gas pipeline is a proposal to transport natural gas from the
Alaska North Slope natural gas reserves to the U.S. Midwest. There are
two competing projects: one by BP and ConocoPhillips called "Denali",
and another by TransCanada Corp.and ExxonMobil "open seasons" in
2010. On June 11, 2009 TransCanada announced it had formed an
agreement with ExxonMobil to work together in bringing the gas to
market.
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The pipeline proposed by TransCanada would run 1,715 miles from the

North Slope to Calgary in Alberta. It is expected to cost US$26 billion
and to be operational by 2018.

Kinder Morgan Pipeline

Kinder Morgan is one of the largest natural gas

transporters and storage operators in the United States.
We transport up to 18 billion cubic feet per day (Bcf/d)
of natural gas through approximately 24,000 miles of
gas pipelines in the Rocky Mountains, the Midwest and
Texas. We also have working gas storage capacity of
about 400 billion cubic feet.

Trans Canada Gas Pipeline

The TransCanada pipeline is a system of natural gas pipelines, up to 48

inchein diameter, that carries gas through Alberta,
and Toronto . It is maintained by TransCanada
PipeLines, LP. It is the longest pipeline in Canada
Constructed in 1956.

On October 10, 1958, a final weld completed the

line and on October 27, the first Alberta gas
entered Toronto, the Trans-Canada pipeline was
the longest in the world. Only in the early 1980s was its length finally
exceeded by a Soviet pipeline from Siberia to Western Europe.

Major gas pipelines in Asia

Dolphin Gas Project

The Dolphin Gas Project is the natural gas project of the United Arab
Emirates, Qatar and Oman. It is first cross-border refined gas
transmission project and the largest energy project in the region.

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Dolphin gas pipeline was constructed in 1999 to produce, process and

transport natural gas from Qatar's North Field to the UAE and Oman ,
The 48 inches pipeline has capacity of 33 billion cubic meter (bcm) of
natural gas per annum. The construction of the pipeline was objected by
Saudi Arabia because of the border dispute between Saudi Arabia and the
UAE, however the pipeline was built. The project is developed and
operated by Dolphin Energy, a company established in Abu Dhabi.

Iran Turkey pipeline

The Iran–Turkey pipeline is 1,600 mi long natural gas pipeline, which
runs from Tabriz in North-West Iran to Ankara in Turkey.

The construction of pipeline started in 1996 after signing a gas deal

between Turkish and Iranian governments, The pipeline was
commissioned 2001.

On January 2008 gas supplies were stopped because cut-off gas

supplies from Turkmenistan. The supplies were restored on 27 January
2008. The supply was cut-off again in February 2008 because of bad
weather conditions. The project is operated by botas company

Major gas pipelines in south

America
Bolivia-Brazil pipeline
The Bolivia-Brazil pipeline (GASBOL) is the
longest natural gas pipeline in South America.
The 3,150 kilometres (1,960 mi) long pipeline

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with 32 inch diameter connects Bolivia's gas sources with the south-east
regions of Brazil. started operation in 1999, The maximum capacity of
the pipeline is 11 billion cubic meter (bcm) of natural gas per annum.

Trans-Caribbean pipeline
The Trans-Caribbean gas pipeline (also known as Antonio Gas Pipeline)
is a natural gas pipeline between Venezuela and Colombia with proposed
extension to Panama . The construction started on 2006 with presence of
presidents Hugo Chávez of Venezuela, Álvaro Uribe of Colombia and
Martín Torrijos of Panama. It was Commissioned on 2007.

The pipeline is 224kilometres long ,the maximum capacity is 5 billion

cubic meters per year, The operator of the pipeline is Petróleos de
Venezuela.

Reference
 BP Statistical Review of World Energy/June 2009.
 World Political Affecting on oil price Dr.RAHUMA.M.KHULUD/
/Petroleum Seminar/AL FATEH UNIVERSITY/ 2009

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WEB SITES
www.wekapedia.com
www.nationmaster.com
www.theoildrum.com
www.iecenergy.com
www.eia.doe.gov
www.bp.com
www.energyandcapital.com

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