Decomposing buried organic material over millions of years through the action of micro-organisms
Overlying layers of sand and silt compress lower layers into sedimentary rock;
Heat and pressure at depth slowly converts buried organic material into petroleum
Petroleum formed deposits may consist mainly of larger (heavy) hydrocarbons, which have the thick, nearly solid consistency of asphalt.
As the petroleum matures, and as the breakdown of large molecules continues, successively “lighter” hydrocarbons are produced.
In the final stages, most or all of the petroleum is broken down further into very simple, light, gaseous molecules—
natural gas.
Some natural gas deposits may form from deposits of plant material buried in sediment without association oil
1
Crude oil, natural gas: How are they
formed?
World oil reserves - end of 2008
Region Billion barrels % of World Total
North America 70.9 5.6%
South & Cent. America 123.2 9.8%
Europe & Eurasia 142 11.3%
Middle East 754.1 59.9%
Africa 125.6 10%
Asia Pacific 42 3.3
North America ; 6%
South and Central America ; 10%
Europe and Eurasia ; 11%
Middle East ; 60%
Africa ; 10%
Asia Pacific ; 3%
Historical trend of oil reserves
Data Source: BP
Mid East Total – 754.1bn bbls
= 102 thousand million tonnes
World oil production
1965 1970
1975 1980
1985 1990
1995 2000
2005 0
5000 10000 15000 20000 25000 30000
Oil production
Other S. & Cent.
America
Other Europe & Eurasia Other Middle East
Other Africa
Other Asia Pacific Asia Pacific
thousand barrels/day
Oil production in Europe and Eurasia
1965 1969
1973 1977
1981 1985
1989 1993
1997 2001
2005 0
2000 4000 6000 8000 10000 12000 14000 16000 18000 20000
Europe and Eurasia
Azerbaijan Denmark Italy
Kazakhstan Norway Romania
Russian Federation Turkmenistan
United Kingdom
Other Europe & Eurasia Total Europe & Eurasia
'000 barrels
World gas reserves - end of 2008
Region Trillion Cubic metres % of World Total
North America 8.87 4.8
South & Cent. America 7.31 4.0
Europe & Eurasia 62.89 34.0
Middle East 75.91 41.0
Africa 14.65 7.9
Asia Pacific 15.39 8.3
North America; 5%
S. & Cent. America; 4%
Europe & Eurasia; 34%
Middle East; 41%
Africa; 8%
Asia Pacific; 8%
2008
Historical trend of gas reserves
Data Source: BP
World gas production
1970 1972
1974 1976
1978 1980
1982 1984
1986 1988
1990 1992
1994 1996
1998 2000
2002 2004
2006 2008 0.0
200.0 400.0 600.0 800.0 1000.0 1200.0
Gas production
Other S. & Cent. America Other Europe & Eurasia Other Middle East Other Africa Other Asia Pacific Asia Pacific
Billion cubic metres
Natural gas production in Europe and Eurasia
1990 1991
1992 1993
1994 1995
1996 1997
1998 1999
2000 2001
2002 2003
2004 2005
2006 2007
2008 0.0
200.0 400.0 600.0 800.0 1000.0 1200.0
Natural gas
Azerbaijan Denmark Germany Italy Kazakhstan Netherlands Norway Poland Romania
Russian Federation Turkmenistan Ukraine United Kingdom Uzbekistan
Other Europe & Eurasia Total Europe & Eurasia
cubic metres
Data Source: BP
Oil trade movements
11
Natural gas trade movements
Source: BP
Oil and gas pipelines in Europe
Oil and gas pipelines to Europe
Oil demand in 2009 estimated at 85.0 mb/d (-1.4% or -1.2
mb/d year-on-year) but expected to rise to 86.6 mb/d in 2010 (+1.8% or +1.6 mb/d versus 2009) to 120 mb/d in 2030
gas demand expected to rise by 41% from 3.0 trillion cubic metres in 2007 to 4.3 tcm in 2030
world energy demand is projected to increase by over 40%
between now and 2030.
Non-OECD countries account for over 90% of demand - China and India alone for over half.
Demand in oil and gas
Outlook for oil demand
15
Source: IEA Oil Market Report 2010
