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Project by: |
Social and Environmental Issues |
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World Oil Resources (at the end of 2001) |
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Country |
Known Reserves |
Extraction |
||||
In Billion Barrels |
%age of world reserves |
In 000 |
%age world extraction (rank) |
%age of country's reserves in 2001 |
Years before reserves exausted |
|
The World |
1050.0 |
100.0% |
74,493 |
100% |
2.59% |
39 years |
Saudi Arabia |
261.8 |
24.9% |
8,768 |
11.77% (1) |
1.22% |
82 years |
Iraq |
112.5 |
10.7% |
2,414 |
3.24% (11) |
0.78% |
128 years |
Kuwait |
96.5 |
9.2% |
2,142 |
2.88% (12) |
0.81% |
123 years |
Iran |
87.9 |
8.5% |
3,688 |
4.95% (4) |
1.53% |
65 years |
United Arab Emirates |
97.8 |
9.3% |
2,422 |
3.25% (10) |
0.90% |
111 years |
Russian Federation |
48.6 |
4.6% |
7,056 |
9.47% (3) |
5.30% |
19 years |
Venezuela |
77.7 |
7.4% |
3,418 |
4.59% (6) |
1.61% |
62 years |
China |
24.0 |
2.3% |
3,308 |
4.44% (8) |
5.03% |
19.9 yrs |
Libya |
29.5 |
2.8% |
1,425 |
1.91% (15) |
1.76% |
56.8 yrs |
Mexico |
26.9 |
2.6% |
3,560 |
4.78% (5) |
4.83% |
20.7 yrs |
Nigeria |
24.0 |
2.3% |
2,148 |
2.88% (13) |
3.27% |
30.6 yrs |
USA |
30.4 |
2.9% |
7,717 |
10.36% (2) |
9.27% |
10.8 yrs |
Norway |
9.4 |
0.9% |
3,414 |
4.58% (7) |
13.3% |
7.5 years |
Algeria |
9.2 |
0.9% |
1563 |
2.01% (14) |
6.2% |
16.1 yrs |
UK |
4.9 |
0.5% |
2,503 |
3.49% (9) |
18.6% |
5.4 years |
| Data source: World Oil Reserves and Oil-based Fuel Development | ||||||
The concern of depleting resources and the damage to the environment caused by excessive drilling has sparked numerous policy initiatives to address these problems. The new policies and research aim to protect current reserves, discover alternative resources, increase efficiency in the oil drilling process, and cut down on oil consumption and energy waste.
In order to decrease oil-drilling, the United States government has restricted oil companies from drilling in areas such as the Arctic National Wildlife Refuge near Alaska and the outer continental shelf (OCS). These protections were made in order to conserve resources and also to decrease the collateral damage done to wild-life in the process of oil extraction and transport. This issue has also inspired new technology in oil tapping processes which makes it possible for oil companies to locate and extract oil with fewer disturbances to the surrounding environment and ecosystems. This technology includes satellites and Global Positioning Systems which use seismic waves to locate oil reserves without drilling. Moreover, techniques such as “directional drilling” and “horizontal drilling” allow a single oil well to draw oil from several bigger wells. (“Petroleum”). Oil drilling companies are a! lso engaging in practices such as Electric Downhole Steam Generation (EDSG) which uses electricity instead of boilers to produce steam. This method eliminates steam energy loss during the oil production process and results in more efficient oil formation.
Policies that limit oil-drilling put pressure on oil companies to not only find ways to increase efficiency, but also to find alternative fuel sources. This initiative has been very slow and burdened due to the substantial funding, time, and energy that go into researching and producing such products. Moreover, once alternative energy sources come to market, there is a significant time lag during which new compatible products are designed and produced. It then takes even more time for consumers to become aware of the products and willing to invest in them.
Much blame has been directed toward the government for the depletion of oil reserves, and some argue the government is not playing the appropriate role in addressing the issues. Although there is effort and initiative going into the protection of oil reserves, it is estimated the government only completely protects about 15% of America’s oil reserves, with 57% completely open to drilling (“Strong”). Moreover, some believe more government pressure and regulation is needed for oil companies to allocate sufficient funds into finding alternative resources. However, the current government appears to have sided with the oil companies; in 2005, President Bush signed a bill that allocated $5 billion in financial subsidies to American oil companies. For many, this political move reflected not only the administration’s consistent preference for business assistance over environmental matters, but also a dim futur! e for oil reserve conservation.
Climate Change:
Another substantial environmental issue pertaining to the crude oil industry is climate change. The burning and processing of crude oil are believed to contribute to global warming due to their emissions of CO2 gases into the atmosphere. In response to this issue, some governments such as the UK have enacted policies such as the Auto Fuels Directive law requiring all fuels to be sulphur-free, and UK companies have reacted by introducing diesel and petrol products that are “ultra low sulphur.” There have also been environmental laws passed in the United States regulating the make-up of diesel and gasoline fuel in order to decrease their toxic emissions. The new fuels, called “reformulated fuels” have been increasing in sales over the past decade reflecting a growing degree of concern over the climate changing effects of fuel. Oil Drilling companies have also began regulating their air pollution by intro! ducing the technique of “Vapor Capture” which better contains toxic fumes given off during production.
Although policies are being implemented in order to decrease environmental pollution related to the production and burning of crude oil, the problem still remains and it is evident that this problem is not likely to be solved by consumers agreeing to limit their energy consumption. Rather, new, more environmentally-friendly fuel sources seem to be the more effective, although challenging, answer.
The Quest for the “Greener” Alternative:
With the world population increasing steadily, demand for crude oil and energy products will only be maintained or augmented. In light of issues including fossil fuel depletion, climate harm, and escalating oil prices, there has been a political and consumer push for more environmentally friendly, less expensive alternatives to crude oil. However, as evidenced by the struggles in this initiative, these products and related technologies will take time to come to market. Yet, many companies are taking steps toward catering to this consumer demand and aligning the alternative fuel production with compatible products. For instance, Esso Oil Company is currently collaborating with General Motors and Toyota in order to produce “greener” vehicle alternatives such as hybrids and fuel-cell cars. !
Although Esso believes diesel and petrol use will remain strong for the next 10 years, the company is attempting to accelerate the transition by investing in the new technology and products. Esso’s innovations reflect a growing competition among Oil Company’s such as BP and Exxon in order to cater to this environmentally conscious market. Moreover, car makers such as Ford are in the process of developing “hybrid petrol/electric-powered” vehicles which are not dependent on oil.
In order for empirical change to come about decreasing the world’s reliance on crude oil, there must be a combination of governmental and social response. Governmental response is needed in the forms of laws and policies that channel funds into the research and design of oil-independent and more energy-efficient products. Moreover, government regulation and legislation have significant effects on the growth of the market through taxation, price regulation and trade agreements and may be able to stimulate investment in alternative fuels. The government can also create policies that protect our environment from excess drilling by expanding the restrictions on drilling locations. However, social and consumer response also play a large role. If companies believe there is enough demand to sustain a market, that market will be catered to. Thus, in order to bring about more environmentally safe products, consumers must continue! to put their purchases where their mouths are and invest in this initiative.
For more information on oil reserve depletion: 
For more information on global warming and climate change:
Visit the Enviromental Protection Agency
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