World Oil & Gas Consumption

AL FATEH UNIVERSITY

FAULTY OF ENGINEERING

PETROLEUM ENGINEERING DEPARTMENT

Prepared By

HAMED ABD AL SALAM SULAYMAN AL BARUNI

Supervised By

Dr.RAHUMA.M.KHULUD

SPRING 2009

SULAYMAN & HAMED PAGE 2

Contents

Introduction.

History of global oil & gas Consumption.

Oil & gas Consumption by Region.

Current main gas & oil Consumer.

Consumption of Libya.

Predating future oil & gas Consumption.

The Factors & Problems that Cause Increase in Consumption in

the Coming Decades.

What about Libya?

The Solutions to the Delay in Increasing in Consumption.


Introduction

nergy is one of the most fundamental parts of our universe.

We use energy to do work. Energy lights our cities, Energy

powers our trains, planes, Energy warms our homes, cooks

our food, Energy powers machinery in factories,

Energy from the sun gives us light during the

day. It helps plants grow, everything we do is

connected to energy in one form or another.

Energy comes in different forms heat

(thermal), light (radiant), Mechanical, electrical, chemical, and

nuclear energy. Energy is measured in a couple of different ways. One

of the basic measuring blocks is called a Btu (Btu- the

amount of heat required to raise the temperature of

one pound of water one degree Fahrenheit) and Btu

is a British thermal unit is usually used to describe the energy content

of fuels.

There are two types of energy (potential) energy and (kinetic)

energy.

E


Source of Energy

1)Renewable Energy

Wind Energy

Wind is simple air in motion , Through the use of

wind turbines mounted on a tower at 100 feet, wind

power is captured and converted into useful form,

such as electricity. This technology or wind turbine

can be used as stand-alone applications for water

pumping or communications. It can be also

connected to the power grid or combined with solar

energy systems. A plant with numerous wind

turbines is required for large scale demands of

energy.

SOURCE OF

ENERGY

RENEWABLE

WIND

GEOTHERMAL

HYDROPOWER

BIOMASS

SOLAR

NONRENEWABLE

PETROLEUM

NATURAL GAS

COAL

NUCLEAR


Geothermal Energy

Geothermal energy is energy generated from heat

stored in the earth, or the collection of absorbed

heat derived from underground.

like Volcanic energy cannot be harnessed

(controlled and collected), but in a few places heat

from the earth,

Hydropower Energy

The energy from moving water ,hydropower

energy of the renewable energy sources that

generate electricity, hydropower is the most often

used. Mechanical energy is derived by directing,

harnessing, or channeling moving water. The

amount of available energy in moving water is

determined by its flow or fall, Swiftly flowing

water in a big river, like the Columbia River along

the border between Oregon and Washington, carries

a great deal of energy in its flow. or water

descending rapidly from a very high point, like

Niagara Falls in New York.

Biomass Energy

Biomass is organic material made from plants and

animals, Biomass contains stored energy from the

sun. Plants absorb the sun's energy in a process called photosynthesis, Biomass is a renewable

energy source because we can always grow more

trees and crops, and waste will always exist. Some


examples of biomass fuels are wood, crops,

manure, and some garbage.

Solar Energy

The sun has produced energy for billions of years.

Solar energy is the solar radiation that reaches the

earth ,Solar energy can be converted directly or

indirectly into other forms of energy, such as heat

and electricity .

The sun is the main source for most renewable

energy forms. Solar Energy incorporated the use of

photovoltaic (solar cell) technologies. It can be

used directly as heating and cooling system, as

lighting device, as electricity generator or in a

variety of other industrial purposes.

2)Nonrenewable Energy

Petroleum Energy

Oil was formed from the remains of animals and

plants that lived millions of years ago in a marine

(water) environment before the dinosaurs.

Over the years, the remains were covered by

layers of mud. Heat and pressure from these layers

helped the remains turn into what we today call

crude oil .


The word "petroleum" means "rock oil" or "oil

from the Earth and it’s Nonrenewable energy ,

Today petroleum is the most important Energy in

the World.

Natural Gas Energy

Millions of years ago, the remains of plants and

animals decayed and built up in thick layers. This

decayed matter from plants and animals is called

organic material -- it was once alive. Over time, the

mud and soil changed to rock, covered the organic

material and trapped it beneath the rock. Pressure

and heat changed some of this organic material into

coal, some into oil (petroleum), and some into

natural gas .

Natural gas is Nonrenewable energy & it's the

second source of energy in the world.

Coal Energy

Coal is a combustible black or brownish-black

sedimentary rock composed mostly of carbon and

hydrocarbons. It is the most abundant fossil fuel

produced in the United States.

Coal is a nonrenewable energy source because it

takes millions of years to create ,Coal is one of the

largest worldwide sources of carbon dioxide

emissions. Gross carbon dioxide emissions from

coal usage are slightly more than those from

http://www.nytimes.com/2009/03/17/business/energy-environment/17coal.html?_r=1


petroleum and about double the amount from

natural gas. Coal is extracted from the ground by

mining, either underground or in open pits.

Nuclear Energy

Nuclear energy is energy in the nucleus (core) of

an atom. Atoms are tiny particles that make up

every object in the universe. There is enormous

energy in the bonds that hold atoms together.

It can be released from atoms in two ways:

nuclear fusion and nuclear fission.

In nuclear fusion, energy is released when atoms

are combined or fused together to form a larger

atom. This is how the sun produces energy.

In nuclear fission, atoms are split apart to form

smaller atoms, releasing energy. Nuclear power

plants use nuclear fission to produce electricity.

0

10

20

30

40

50

1980 1990 2003 2010 2020 2030

Energy U

se %

Years

OIL GAS COAL RENEWABLE NUCLEAR


Consumption

he use of goods and services, materials and energy, by

humans. other using up of goods and services having an

exchangeable value , Consumption is described as utilizing a

service or product until its economic value is exhausted.

It can also be described as aggregate expenditure on

personal consumption that manifests itself on buying of

goods and services Expense required is

sourced from either savings income or even

from borrowed funds. Consumption denotes

that portion of disposable income that is not saved by an individual.

Oil & Gas Consumption

Oil and Natural gas are the most important source for energy in the

world. Petroleum constitutes 39% of global energy consumption

whereas gas constituents 23% of energy consumption and the cause is

its widespread availability and its ease of transportation and

cheapness as it is a raw material for other industries. Oil and Gas are

not consumed in its original in their format but are in fact are

converted into substances at refineries.

T


Oil and Gas are consumed as follows

1. Residential & Commercial

I. Lighting

II. Heating & Cooling

III. Electricity

2. Industry

I. Petroleum refining

II. Steel manufacturing

III. Aluminum manufacturing

IV. Paper manufacturing

V. Chemical manufacturing

VI. Cement manufacturing

3. Transportation

I. The automobiles

II. Commercial transportations

III. Trucks

IV. Trains

V. Airplanes

VI. Mass transit


History of Global Oil & Gas Consumption


The most important events that affected on the average global

consumption is

The Petroleum Crisis )1973-1975(

During the October 1973 war the Arab Oil Producing countries

placed an embargo on oil supply to America and most of the

European countries and some other

countries such as South Africa and

Rhodesia.

This embargo caused a shortage

of oil and gas globally which led

these countries to follow policies

to reduce consumption and close

factories and limit individual consumption of petroleum which led to

a decline in the average global consumption of oil and gas by 1.5%

and this continued until the year 1975.

The Iraqi - Iranian War )1980-1988(

The First Gulf War was between the armed forces of Iraq and Iran

and lasted from September 1980 until August of 1988 and this war

was one of the longest traditional

wars of the twentieth century.

In the year 1981 the oil tankers

war began which was targeting the

oil tankers and other ships of the

two countries. The goal was to cut

off supplies to the two fighting

armies and it was only the ships owned by the two countries but was

extended to supporting countries such as Kuwait and Saudi Arabia. In

spite of an effort by the gulf countries to increase production, the


prices of Petroleum began to rise which led to a negative result in

consumption causing a decline.

The World Economic recession of (1980 -1986)

The World Economic recession which led to a decline in demand

for petroleum from 64.3 million barrels a

day (1979) to 58 million barrels a day

in the year 1983 with an average decline

of 3.6% a year and the cause was the

success of energy “guidance”

implemented by the industrial powers

after the crisis of 1983 and also the

undertaking by these countries of

operating its nuclear power stations which led to an acute decline of

consumption of oil and gas.

The world recession 2008 until the present

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


Oil Consumption By Region

REGIONS RESERVE B BBL

PRODUCTION MBBL/DAY

CONSUMPTION MBBL/DAY

Total North America 69 14670 25024

Total S. & Cent. America 111 7121 5493

Total Europe & Eurasia 143 19147 20100

Total Middle East 755 27029 6203

Total Africa 117 11077 3955

Total Asia Pacific 41 8489 25944

TOTAL WORLD 1237 87533 86716


e notice a decline in the consumption of Petroleum in

Africa which is caused by the rise in the level of poverty

and also to the great number of political and ethnic

conflicts inside the continent and this is also true in South America

because of its dependence on energy sources instead of petroleum the

most important being coal. South America is the continent that uses

coal the most. Only North America, Europe and Eurasia we note a

large increase in the use of Petroleum if it is compared to the

population and this was caused because of the higher standard of

living of the population and prosperity of the nations economically

and industrially and also non guidance of consumption as is the

situation in the nations in south Asia.

In these countries despite the presence of guidance in the

consumption of energy and because of the increase in the number of

the population so that more than two thirds of the planet population

inhabit south Asia and the rapid economic growth of these countries

has made it the region which consumes more petroleum than any area

in the world.

W


Gas Consumption By Region

REGIONS RESERVE T FT3

PRODUCTION B FT3/DAY

CONSUMPTION B FT3/DAY

Total North America 281.6 76.4 77.5

Total S. & Cent. America 272.8 14.8 13.0

Total Europe & Eurasia 2097.8 106.0 116.3

Total Middle East 2585.3 35.0 29.0

Total Africa 514.9 18.7 8.1

Total Asia Pacific 510.6 38.5 43.3

TOTAL WORLD 6263.3 289.7 287.2


he 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.

T


USA26%

China10%

Japan8%India

5%

Russia3%

Germany3%

others45%

Current Oil & Gas Consumers

The United States is the biggest consumer of

Oil and Gas in the world such that it

consumes more than 25% of global

consumption of petroleum and 23% of

global consumption of Gas. The United

States and China and Japan and India

and Russia and Iran are the biggest

users of energy in the world and these

countries utilize more than 58% of

Global Energy.

The following table clarifies the most important consumer of

petroleum and until the end of 2008.

CONTRARY M BBL/DAY

USA 22546

China 8671

Japan 6937

India 4336

Russian Federation 2601

Germany 2598

South Korea 2371

Canada 2303

Brazil 2192

Saudi Arabia 2188

Others 29968

Total world 86716


The following table clarifies the most important consumers of gas and

until the end of 2008.

Country B FT3/Day

USA 66

Russian Federation 45.9

Iran 11.1

Canada 9.3

United Kingdom 9.2

Japan 9

Germany 8

Italy 7.5

Saudi Arabia 7.4 China 6.5

other 107.3

Total world 287.2

USA23%

Russia16%

Iran4%

Canada3%

UK3%

Japan3%

other48%


Consumption of Libya

ibya’s consumption of petroleum is 313 M BBL of oil Per

day which makes 51st globally and 7

th in the Arab nation

from the standpoint of consumption. It is a large number in

comparison with the population of Libya which is estimated at six

million. That is 20.1 barrels per capita per year

,This makes Libya the biggest consumer of

Petroleum per capita in Africa.

As far as its consumption of Natural gas it amounts to 1.4 billion

cubic feet of natural gas per day which makes it 118th in the world and

8th in the Arab Nation. The consumption of gas in Libya is still little

compared with consumption of oil. This all goes back basically to the

fact that Libya has not began the production of gas as a basic source

of energy and it still depends on petroleum essentially which is the

opposite to the rest of the Arab Nation and Europe. This is because

the low export prices of natural gas and the high level of poverty in

the Arab nation. This makes gas a cheap source of energy compared

to Petroleum.

A Table showing the consumption of Oil and Gas in Libya until 2008

LIBYA OIL M BBL/DAY

GAS B FT3/DAY

PRODUCTION 1747.73 2.7

CONSUMPTION 313.14 1.4

EXPORT 1434.6 1.3

L


Predicting of Oil & Gas Consumption

The global consumption of Petroleum will increase 5% during the

first quarter of the 21st century until it reaches 1.2 billion barrels per

day by the beginning gin the year 2025 and the global consumption of

natural gas will increase by 57% compared to the present which will

lead a big deficit in the quantities available and the continued rise in

the prices thinks to what energy companies will fail to meet the

increasing demand.

85000

86000

87000

88000

89000

90000

91000

92000

2008 2011 2014 2017 2020 2023 2026 2029 2032 2035 2038 2041 2044

Oil

Co

nsu

mp

tio

n M

Bb

l/D

ay

Years

OIL CONSUMPTION

0

200

400

600

800

1000

1200

1400

1600

1800

2008 2011 2014 2017 2020 2023 2026 2029 2032 2035 2038 2041 2044

Ga

s C

on

sum

pti

on

B C

uF

t/D

ay

Years

GAS CONSUMPTION


The Factors that Cause Increase in

Consumption in the Coming Decades

1Increase in Global Population

The planet population increased from 2.5

billion in 1950 till it reached 6.8 billion for the

year 2008 and this was accompanied by the

migration of most of the planets population to

the cities and an increase in world trade and an

increase in individual income and an increase in the individual’s

consumption of energy.

The planet population will each more than 7 billion by the year

2012 and it will reached 9 billion by the year 2050 which will mean

an increase in Energy consumption.

2Rapid Economic Growth in the developing nations

The rapid economic growth of the developing

nations especially India China and Brazil amounts

to an important factor increasing the

consumption of oil and gas. The consumption of

petroleum in the developing nations will

increase by 96% by the year 2025 while the

consumption of natural gas by 13% and the consumption of

Petroleum will increase by 156% in China and India by 152% and the

cause of that because of the effort at nationalization of energy

resources very rapidly and because if the social and economic

progress and it should be remembered by 2015 China will have the

largest economy in the world. Its consumption will be greater than the

United States of America.


While India will become the second largest consumer of oil and

gas in 2025.

3Wars and Political Crises

Wars and Political Crises do not

last for a long time so their effect on

consumption will not last for weeks

or months. Since the Iraq Iranian

war in the year 1980 which lasted

for8 years until the year 1988. The

world has not held a war which

effected consumption.

If the United States launches a war on Iran, this war will have a

great effect on Global consumption of oil and gas as opposed to all

previous wars. This is caused because Iran can close the Hormuz

strait which are the only passage way that carries gulf crude and to a

reduction to Iran production of oil and Gas. Iran is China’s most

important supplies which is the works second largest consumer.

Thus we note that China reduced to vote in the Security Council

whenever America a tries to impose any punishment on Iran.

4The Economic Crises

The Economic Crises and global downturns have

an effect of the consumption of energy and the cause

being the psychological state of the consumer, when

the consume feels that there is an economic problem or

rising price it will reduce consumption by a great deal

because of the reduction by all vital sectors of its expenses and the

closing of a great deal of factories throughout the world all of which

will lead to a noticeable reduction in oil and gas. The economic crises


will quickly affect the levels of consumption generally. This was clear

in the economic crisis of the late eighties s in the last century. The

world went through a period of economic downturn. Also the

financial problem though which the world is going through which we

have already dealt with earlier in the report.

5Natural Catastrophes

The climatic situation in the world and the change

that has taken place has contributed to the increase in

the consumption of oil and gas. The Katrina tornado

an others and earthquakes and natural disasters have

are all possible causes at any time which may lead to an increase in

the average consumption of petroleum globally, so that with the end

of the spring season and the beginning of the summers season

activities tropical storms to threaten offshore petroleum rigs in the

gulf of Mexico and on the eastern seacoast of the United States

Atlantic Ocean which may have an effect on the prices of Oil and

Petroleum and thereby its consumption.


The Problems that Face the World when

Consumption Increases in the Future

he latest discoveries of petroleum that are large were in the

sixties in the North Sea and on the Alaska slope and West

Siberia and since then there has been a decline in the new

petroleum discoveries.

But more important that was larger in the end of the sixties. At the

end of the sixties 500 new oil fields were discovered and in the

seventies more than 700 new fields were discovered. In the eighties

the number equaled 856 new fields and in the nineties 510 new oil

fields During the present decade however only 165 new fields were

discovered all smaller than previous discoveries, After both Indonesia

and Britain changed from producer countries to consumer the reserves

of the producer countries will decline, if production continues such as

Norway after 9 years and Mexico after 10 years and Brazil after

15years.

T


rom another standpoint the planetary storage of energy and the

new discoveries cannot be expected to meet the increasing

global demand for petroleum.

If a state such as Saudi Arabia is capable of increasing daily

production from 1 to 12 or 15 million barrels per day then the other

producers of Petroleum such as Iran, Iraq, Kuwait, Nigeria, Russia,

and Venezuela are expected to maintain with difficulty on their

present production. This will mean a shortage in supply and an

increase in prices. For this reason most of the great countries are

depending more on natural gas that is being used to a larger decree in

a large number of industries because its reserve has not been exploited

yet and it discoveries continue to increase.

F


What about Libya?

Libya produces approximately

1.7 million barrels of oil par day

during this year after it was

decided that production will

increase to 2 million barrels a day

however because of the

international crisis and the decision of

OPEC to reduce production the Libyan plan to

increase production of 3 million barrels a day by the year

2012 has been postponed.

But as far as gas then 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.

In the framework’s of Libya plan to increase its production capacity

in Oil and Gas So that Libya began a new policy of contracting

through the tender sessions such that it offered areas are candidates

for oil and gas production in all the rich sedimentary basins of Libya

in four sessions in which international oil companies competed from

all the continents. As a result of this sessions there emerged new

discoveries of oil and gas finds.


The following table clarifies the most important of these discoveries:

DATE OF

DISCOVERY DISCOVERING COMPANY

PLACE OF

DISCOVERY

TYPE OF

DISCOVERY

29/4/2008 VERENEX ENERGY Ghadames Basin Oil & Gas

5/5/2008 RWA Sirte Basin Oil

7/10/2008 SIRTE Sirte Basin Oil & Gas

15/12/2008 ARABIAN GULF Murzuq Basin Oil

23/12/2008 AMERADA HESS Marine Zone Oil

15/1/2009 WOODSIDE ENERGY Ghadames Basin Oil & Gas

09/4/2009 REPSOL Territorial Waters Oil

13/4/2009 SONATRACH Ghadames Basin Oil & Gas


xperts agree that Libya even if its oil reserve it will still be

difficult for it increase its oil production beyond the limit of 3

to 3.5 million barrels a day, The following figure shows the

increase in consumption even while production falls.

E


The Solutions to the Delay in Increasing in

Consumption

1New Petroleum discoveries

In spite in the decline in new discoveries there may be stores of

petroleum is still possible for example on the Libyan side. There is

still 35% of the Libyan Land not explored and there are still non

explored areas on the continent of Africa; because of the instability of

some African countries caused by Political and ethnic conflicts.

A Map showing unexplored countries in the Africa

2Guided Use of Energy

The problems of energy can be delayed by guiding its use, and

that by decreasing the annual increase in oil and gas production but

this means a decline in rapid economic growth in the world which is

rejected by the advance and industrialized economies.


3The Transfer to the Gas

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. Also Iran has modernized and

developed its gas fields and Qatar built the largest gas liquefaction

plant in the world.

4Using Alternative Energy

There are a large number of sources of energy in the

world which need development some of them renewable

energy sources such as Oil and gas which are non

renewable. Libya must move to other sources of energy

example solar Energy.

5 Development of Fields

The development of the oil fields is the most

important solution with an increase in the global

reserves such that most of the planet soil is

unconventional and needs special techniques of

enhanced recovery. And to use these methods the

price of the barrel of oil must reach to 120 to 145 USD so that

extraction is economic.


Unconventional oil

Tar sands, also referred to as oil sands or bituminous sands, are a

combination of clay, sand, water, and bitumen. Oil

which will not flow toward producing wells under

normal conditions, making it difficult and

expensive to produce.

Tar sands deposits are found in over 70

countries throughout the world, but three quarters

of the world's reserves are in two countries,

Venezuela and Canada.

While all conventional reserves-proven, unproven, and already

pumped-amount at upper estimates to 1.2 trillion barrels, it's thought

that another 3.5 trillion barrels can be extracted from unconventional

sources.

http://en.wikipedia.org/wiki/Clay

http://en.wikipedia.org/wiki/Sand

http://en.wikipedia.org/wiki/Water

http://en.wikipedia.org/wiki/Bitumen

http://en.wikipedia.org/wiki/Venezuela


Appendix

DECIMAL SYSTEM

NUMBER OF ZEROS DECIMAL SYMBOL

3 thousand M

6 million MM 9 billion B

12 trillion T

UNITS

UNITS OIL GAS

Reserve BBL FT3 Production BBL/Day FT3/Day

Consumption BBL/Day FT3/Day

DEFINITIONS

Asia-Pacific

APAC is the area generally regarded as encompassing littoral East

Asia, Southeast Asia and Australasia near the Pacific Ocean, plus the

states in the ocean itself (Oceania).

Eurasia

Eurasia is the continents Europe and Asia combined. so for

example, Russia is in both Asia and Europe so you could just say it’s

in Eurasia.

Extra-Heavy oil Natural bitumen

Also known as "oil sands," bitumen shares the attributes of heavy

oil but is even more dense and viscous. Natural bitumen has a

viscosity greater than 10,000 cP.


Reference

BP Statistical Review of World Energy/June 2008.

World Oil and Gas Review 2005/PAOLO SCARONI/ENI

Technical paper intermediate energy info book.

World oil consumption per capita/GOOGLE EARTH.

Key Economic & Monetary Indicators/NOC

Is world oil production about to peak?/Randy Udall/Steve

Andrews

World Political Affecting on oil price/DR.A.A.URAET/

Petroleum Seminar/AL FATEH UNIVERSITY/ 2007

World Oil Reserves And Production/M. BELKHIER / E.

ARARA- Petroleum Seminar/AL FATEH UNIVERSITY/2008

WEB SITES

www.noclibya.com.ly www.nationmaster.com

www.theoildrum.com www.guardian.co.uk/

www.iecenergy.com www.eia.doe.gov

www.bp.com news.bbc.co.uk

planb.org/resources/beyondoil www.hart-isee.com

www.energyandcapital.com mwhodges.home.att.net

Documents

World Oil & Gas Consumption