Significance of Oil and Natural Gas

Jay and Carl Williberg

What is oil?

• Oil is the world’s most important commodity.• It’s a non-renewable energy and it is running

out. • «Peak oil» is a term that refers to a time when

maximum global petroleum supply is reached.• It is the core resource to our current system of

survival.

Dr. Hubbert’s Curve

• 1-Proven reserves (250*10^9 barrels)• 2-Cumulative Production (90*10^9 barrels)• 3- Future Discoveries (910*10^9 barrels)

Supplies are Decreasing

• Possible global impacts:• Economic depression• Global uproar and uncertainty• Global warming

What are we using it for?

• 44% is used for gasoline• 35% Other fuels• 21% Plastics, pesticides…

Who has the most oil?

Who is using it?

• World’s top 6 oil consumers in 2010• For every 6 barrels ofoil that we consume,we find 1.

What is left?

• World’s PROVEN oil reserves (billions of barrels)

United States consumed 20% of the global total in 2010

Oil Consumption since 1980

Natural Gas

What is it?• It is a natural hydrocarbon gas.• Consists of: methane, carbon dioxide, nitrogen

and hydrogen sulphide.

What is it used for?

• Heating• Cooking• Electricity generation• Fuel for vehicles• Chemical feedstock• Plastics

Where are we extracting it?

Map of extraction

Easy to transport

• When cooled to -160 C: natural gas becomes a liquid

• This liquid is 600 times smaller in volume than when in gas form

Natural gas, a replacement for Oil?

• Natural gas releases 25% fewer green house gases than oil.

• Costs less• Easier to transport • Statistics show that natural gas production will

increase 30% in the next two years• Some cars in Asia are already running on

natural gas