DISASTER MGMT CHALLENGES

BP Oil well disaster

Bilal JawadFarah Khawwam

1)Strategic significance and impact of Oil on nations,business,individuals

2)British Petroleum (BP) oil well disaster of April 2010 in the Gulf of Mexico

3) Summary & conclusion

Significance of Oil

is the most important natural resource of the industrialized nations. It can generate heat, drive machinery and fuel vehicles and airplanes. Its components are used to manufacture almost all chemical products, such as plastics, detergents, paints, and even medicines. As it is such an important resource it is very important to expand our technical ability to discover new sources and extend the production lives of existing oil fields.

Oil

Impact of oil on nations, individuals and Business : is adding to the economy of each nation in the forms of jobs, investment, and growth. The price of oil influences the costs of other production and manufacturing across any nation or country For example, there is the direct correlation between the cost of gasoline or airplane fuel to the price of transporting goods and people. A drop in fuel prices means lowertransport costs and cheaper airline tickets. As many industrial chemicals are refined from oil, lower oil prices benefit the manufacturing sector. Oil prices do have an impact on the U.S. economy, but it goes two ways because of the diversity of industries. High oil prices can drive job creation and investment as it becomes economically viable for oil companies to exploit higher-cost shale oil deposits. However, high oil prices also hit business and consumers with higher transportation and manufacturing costs. Lower oil prices hurt the unconventional oil activity, but benefits manufacturing and other sectors where fuel costs are a primary concern.

Oil

Rank CountryProduction(bbl/day)

Share of World’s output(Percentage)

1 Russia 10,107,000 14.05%

2   Saudi Arabia 9,735,200 13.09%

3 United States 9,373,000 12.23%

4 China 4,189,000 5.15%

5 Canada 3,603,000 4.54%

6 Iraq 3,368,000 4.45%

7 Iran 3,113,000 4.14%

8 United Arab Emirates 2,820,000 3.32%

9 Mexico 2,562,000 3.56%

10 Kuwait 2,619,000 2.96%

Production:In accordance to an estimate held by IEA in 2011 , 63% of the world’s total oil output is obtained by the top ten largest producers which are given below:                                   

is the most precious usable and important source of energy in the world. Oil production means the sum of crude oil barrels extracted on daily basis through the drilling process. Most nations have Considerably effected by the innovations and developments in the oil market. Its need and consumption is increasing day by day.its demand is increasing at highest rate in all over the world. In different nations it is produced through a process which may differ and sometimes same. different constituents are extracted from crude oil , such as petroleum, gasoline etc.

Oil

Major oil consuming nation: top 5 The United StatesThe United States, the world's biggest oil consuming country, consumed 18.5 million barrels of oil per day (mbd) in 2012, which accounted for nearly 20% of the world's total oil consumption per dayChinaChina's oil consumption stood at 10.3mbd in 2012, accounting for about 11.7% of the world's total oil consumption making it the second biggest oil consumer after the USJapanJapan consumed 4.7mbd of oil in 2012, becoming the world's third biggest oil consumer, with about 5.3% of the world's total oil consumptionIndiaIndia ranks fourth among the world's biggest oil consuming countries, its oil consumption in 2012 stood at 3.6mbd, five percent higher than the previous year, accounting for about 4.2% of the world's average oil consumption per day during the year.RussiaAt 3.2mbd accounting for about 3.6% of the world's total oil consumption per day in 2012, Russia is fifth among the world's biggest oil consuming countries

History of Major milestones of Oil related

Events since 1975

In general there are three subsegments of “alternative” energy investment: solar energy, wind energy and hybrid electric vehicles. Alternative energy sources which are renewable, free and have lower carbon emissions than what we have now are wind energy, solar energy, geothermal energy, and bio fuels.

Why alternative energy ? Success?