9. Consuming Energy Resources: Oil Supply and Demand

Question 1

What are Oil reserves?

Answer 1

Oil reserves - amount of recoverable oil - extracted using technology

Question 2

What is Oil Production

Answer 2

Process of extracting and refining crude (unrefined) oil

Question 3

Where are most of the Oil Reservies?

Answer 3

Countries in the Middle East

Question 4

What are the factors that affect a countries oil production?

Answer 4

Infrastructure - right equipment and technology

Domestic Demand - SA relies on oil to meet own energy needs

Shrinking Reserves - Oil from North Sea reserves declining as get used up

Question 5

What is impacting the increase of global oil consumption?

Answer 5

Global consumption increased 1.4 million barrels a day between 2015 and 2016
GDP per capita increases and so does oil consumption
Wealthier countries - energy intensive goods e.g. cars - 65% of oil used for vehicles
Rapid industrialisation- emerging economies - increased oil consumption. Growing population - boom in industry - expanding cities - higher consumption

Question 6

What are the factors affecting oil supply and prices

Answer 6

Over supply - prices fall
Under supply - prices rise

Factors

Conflicts - disrupt oil production - shortages

Diplomatic relations - prices increase if tension between oil producing countries

Recessions - lower demand - industrial activities and economic growth slow down - prices fall

Economic booms - prices increase during economic growth - increase consumption and demand