12.1. Oil Flashcards
Oil Consumption Overview
- Oil accounts for at least 30% energy consumption in almost every country - accounts for around 50% in the Middle East.
- In 2018 Middle Eastern countries accounted for 34.2% of oil production with the USA (19%), Saudi Arabia (15%) and Russia (13%) the highest producers.
- Between 1988 & 2018, proven oil reserves rose significantly (due to finding new oil and new extraction technologies)
- However, the demand & consumption is increasing at a much faster rate than new resources are being proven.
Oil Production Trends
consistent rise in production of oil in every country with production continuing to rise and has roughly
doubled 1970 – 2016.
Oil Consumption Trends
increased most rapidly in LICs and MICs - positive relationship between economic development, population and energy consumption
- Consumption dominated by USA and China.
- Middle Eastern and also European countries also consume large amounts.
- Global consumption almost doubled 1970 – 2010
- Recent slow-down in growth of consumption.
Reasons for High Demand of Oil
- Energy efficiency of oil is very high - energy intense so you need very little of it
- Oil is not used for energy
- 79% used for energy for transport
- 21% of oil is used for clothing, polyester, plastic
Where does our oil come from now?
Proven Reserves: 90% chance of oil being extracted and it’s actually there
Non-proven reserves: Believe that oil is there and available but extraction is uncertain
the highest proved oil reserves are in Venezuela
(20% of global reserves), Saudi Arabia (18%), Canada (13%).
Hubbert’s Peak Theory
The idea that as oil production follows a bell-shaped curve, global oil production will peak and go into terminal decline
- Newly discovered reserves
- Quick consumption of oil
- Oil runs out as it is harder to discover and use
Geopolitics
The study of the way a country’s size, position, etc. influence its power and its relationships with other countries
Oil in geopolitics
- The supply of and demand for oil have the capabilities to greatly change the relative influence, importance and power of nations.
- It can also influence relationships between different countries, and change domestic and foreign policy.
Impacts of continued oil production and consumption
Environmental
- Pollution and climate change at a global scale through the consumption of oil (link your knowledge to AS level climate change)
- Regional and local pollution through the production and transport of oil (case studies to come examining this impact).
Economic
- Continued economic development for the producers of oil
- Possible link to rising commodity and food prices (fear of scarcity / lack of supply > price rises > biofuels to counter price rises > other crops are grown less > fewer other crops > price rises).
Oil Spill Hazards
- Oil is less dense than water and therefore floats on the
surface of water. Oil is therefore easily transported by water. - Prevailing winds, currents and tides can transport oil hundreds of miles from where it was initially spilt;
- Oil is a toxic material (it is poisonous). Large concentrations of oil will cause environmental damage.
Oil Spill Impacts
The following impacts are likely:
- Physical smothering of organisms: Smothering will affect an organism’s physical ability to continue critical functions such as respiration and feeding.
- Chemical toxicity: Where oil is absorbed into organs, tissues and cells, and can have sub-lethal or lethal toxic effects.
- Ecological changes: This is caused by the loss of key organisms with a specific function in an ecological community.
- Indirect effects: Loss of shelter or habitat through oiling or clean-up operations
- Contamination of groundwater supplies: infiltration and percolation
Crude Oil Transport
- Crude Oil is used for both vehicle oils and as a
valuable raw material in the petro-chemical industry,
producing plastics and other substances. - It’s a very dirty substance;
- Thick, black and tarry;
- Generally sticks to anything that it comes into contact with; and
- In marine environments it can travel hundreds of miles, and coats everything in a thin film of oil.
- Two methods of transport:
- Oil Tanker; and
- Oil Pipeline
Oil in the Arctic
- slightly ironic impact of Global Climate change is that it is causing Arctic ice to recede, further opening up new areas of the Arctic to resource exploitation.
Deepwater Horizon, USA, 2010: KEY FACTS
- occurred on 20 April 2010
- It resulted from an explosion on a BP oil rig and caused the death of 13 people.
- Seventeen others were injured
- A key point is that the Deepwater Horizon well was not able to be capped for three months.
- This greatly added to the magnitude of the oil spill. In total, it is believed that around 4.9 million barrels of oil leaked into the Gulf of Mexico during the oil spill
Deepwater Horizon, USA, 2010: IMPACTS
- Damage to beaches and barrier islands – an important habitat for birds and sea-turtles.
- Animals are poisoned and nesting grounds are disrupted.
- Continental shelf and shallow waters – coral reefs and sea-grass beds hosts species that are ecologically and economically valuable.
- These species, turtles, crabs, shrimp and shark are all harmed.
- Oil can result in reduced oxygen in ocean water, resulting in ocean ‘dead-zones’ with very little marine life. (deep ocean)
- Smaller organisms such as jellyfish or plankton may not be able to avoid the oil and therefore absorb it. Oil can therefore enter the food-chain.
- Over 7,000 animal deaths were reported.
- 11,000km2 were closed to shrimping operations.
