Additional interesting items on
the technology and history
What's on
this page?
Seven Sisters
and
Standard Oil heritage
of major companies
Oil Price
Chart
Largest
Oil
Producing Countries
Largest US Oil
Fields
Largest Oil
Fields
in the World
Countries with Large Natural
Gas Reserves
Largest Natural
Gas Fields in the World
Sources of US Oil
Imports
Where your gasoline
dollars go
Plus assorted facts
in the text
sections |
NEW: A map showing the sources of US oil imports has
been added at the bottom of the page, as well as a table showing where your
gasoline dollar goes. There's also a new link to "Largest Oil Companies,"
and several items have been updated.
US OIL DEMAND, 2004: Over 20 million barrels per day, up from January 2002, when demand was about 18.5 million barrels per day, = 777 million gallons. If lined up in 1-gallon cans, they would encircle the earth at the equator almost 6 times (about 147,000 miles of cans) — every day. Here's another image: EVERY DAY, the US consumes enough oil to cover a football field with a column of oil 2500 feet tall. That's 121 million cubic feet. 55-60% of US consumption is imported at a cost of $50 billion+ per year, amounting to the largest single element of our trade deficit. In summer 2004, thanks to higher prices, increased demand, and lower production, record trade deficits of more than $50 billion per month were recorded, with approximately 30% of that attributable to imported energy costs. In September 2004, the US reported its lowest monthly oil production in 55 years, at an average of 4.85 million barrels per day.
 US demand for natural gas is
increasing, and production in many long-time prime producing areas (e.g. the
Gulf Coast) is diminishing to the point of near-total depletion. Without
significant increases in drilling (well beyond anticipated levels), demand is
predicted to significantly exceed supply soon. By 2000, US demand (22.2
tcf/year) exceeded production (18.7 tcf/year) enough that about 14% of our
natural gas was being imported from Canada. This may provide a window of
opportunity for explorationists and producers (especially smaller operators),
and may improve the domestic market for geoscientists. Note that it is currently
impossible (without complex liquification) to transport natural gas across
oceans -- so huge gas reserves in the Nile Delta, for example, are irrelevant to
US needs.
UPDATE: Hiring of newly graduated geoscientists has increased dramatically
in Fall 1996. FURTHER UPDATE: The "boomlet" of 1996-97 became the bust of 1998,
when the price of oil fell to below $10.00 per barrel, and thousands were laid
off. By late 1999, things were looking up again. The short-term of the cycle
swings is taking many people by surprise. For much of 2000-2002, prices have
been fairly stable in the $20s per barrel.
US PRODUCTION, early 2002:
About 5.9 million barrels of oil per day, plus about 2 million barrels of
natural gas liquids and condensate; and 55 billion cubic feet of gas per day.
Oil production is a decline from 8-9 million b/d in 1986.
World's other largest producers: Former USSR (once the world's largest producer)
production has declined more than 30% since 1988, from more than 12 to about 8
million barrels per day. Saudi Arabia produces
about 5 to 9 million barrels per day (7.3 million in early 2002; production
depends more on OPEC quotas and prices than on real capability).
US Production capacity,
about 8 million barrels per day, is accomplished with about 533,000 oil wells, averaging less than 17 barrels per
well per day. Saudi capacity, similar at about 8-9 million barrels per
day, is from 750 wells — averaging more than
12,000 barrels per well per day. The best well in the onshore 48 states is in
Grant Canyon Field, Nevada, producing about 4000 barrels per day from sucrosic
Devonian dolomites in a small fault block. UPDATE:
1997 discoveries in the Williston Basin are producing up to 6,000 barrels per
day from Mississippian Lodgepole carbonate mounds.
These are the best wells
in the onshore 48 states in decades -- but the Gulf of Mexico is the US hot
spot for current exploration and production.
Oil and Gas are used for much more
than fuel. Every time you brush your teeth (nylon bristles), drink milk or soda
from a plastic container, or play a plastic CD,
And let's not
forget that 57% of the US's electricity is still generated by burning coal --
although almost all of the rest comes from burning oil or gas.
In terms of total US energy usage, the breakdown by source is given in the
following table (for late 2001):
| Energy Source |
Percentage of total |
| Petroleum |
42% |
| Coal |
24% |
| Natural Gas |
20% |
| Nuclear |
8% |
| Hydro power |
2% |
| Solar, Wind, etc. |
2% |
In contrast to US usage, France obtains about 75% of its electricity
supply
from nuclear energy sources.
The US oil industry lost more
than 1,000,000 jobs from 1986-92, more than the more-publicized auto and steel
industries combined.
Seven Sisters & Standard Oil
The original Seven
Sisters were Exxon (or Esso, Humble, Standard of NJ),
Shell, BP (British Petroleum, originally Burmah Oil + Anglo-Iranian),
Gulf, Texaco, Mobil (Standard of NY, or Socony-Vacuum), and Chevron
(Standard of California). Since Gulf Oil no longer exists (acquired by Chevron
in 1984) except as Gulf Canada and a marketing company in the northeast US,
Amoco (Standard of Indiana) was often added to the list of six; but in 1998,
Amoco was acquired by BP to form BP Amoco, while Exxon was acquiring Mobil; and
Chevron and Texaco merged in 2001-2002.
LARGEST OIL
COMPANIES
As noted
above, Exxon and Mobil have merged, and BP Amoco acquired ARCO. If I have
counted correctly, three companies, BP Amoco, ExxonMobil, and
ChevronTexaco, combine within them no fewer than 14 of the 35
Standard Oil Trust companies that were divested from Standard in 1911. For much
more, and more authoritative, information about Standard Oil and its history,
visit
"Whatever Happened
to Standard Oil."
 A 28-year oil
price chart is given below.
(data from
Energy Information
Administration, chart by Gibson Consulting)
OIL
In the history of the world, according to AAPG presidential address,
April 1993,
WORLD
PRODUCTION/CONSUMPTION: Production in 2000-2002 was about 75 million
barrels per day, about equal to the world consumption of about 27 billion
barrels per year. Consumption is increasing at a faster rate than the
increase in production.
20 largest oil producers as of July 1999, in million
barrels per day:
(source: mostly Oil & Gas Journal, World Oil, and EIA;
for 2002, includes condensate & natural gas liquids, which explains the
apparent jump in US production. USA still produces about 5.9 mb/d oil.) |
20 largest oil producers
| Country |
Production |
Rank & Production
Early 2002 |
 1. Saudi Arabia |
7.7 million barrels/day |
3. 7.7 mb/d |
| 2. Former Soviet Union |
7.1 million barrels/day |
1. 8.6 mb/d |
| 3. USA |
5.9 million barrels/day |
2. 8.1 mb/d |
| 4. Iran |
3.6 million barrels/day |
4. 3.7 mb/d |
| 5. China |
3.2 million barrels/day |
7. 3.3 mb/d |
| 6. Norway |
3.0 million barrels/day |
6. 3.4 mb/d |
| 7. Mexico |
3.0 million barrels/day |
5. 3.6 mb/d |
| 8. Venezuela |
2.8 million barrels/day |
8. 2.8 mb/d |
| 9. United Kingdom |
2.7 million barrels/day |
10. 2.6 mb/d |
| 10. Iraq |
2.5 million barrels/day |
11. 2.4 mb/d |
| 11. United Arab Emirates |
2.1 million barrels/day |
12. 2.2 mb/d |
| 12. Nigeria |
2.0 million barrels/day |
13. 2.1 mb/d |
| 13. Kuwait |
1.9 million barrels/day |
14. 1.7 mb/d |
| 14. Canada |
1.9 million barrels/day |
9. 2.8 mb/d |
| 15. Libya |
1.3 million barrels/day |
16. 1.4 mb/d |
| 16. Indonesia |
1.3 million barrels/day |
17. 1.2 mb/d |
| 17. Brazil |
1.1 million barrels/day |
15. 1.6 mb/d |
| 18. Oman |
0.9 million barrels/day |
18. 1.0 mb/d |
| 19. Egypt |
0.9 million barrels/day |
21. 0.75 mb/d |
| 20. Colombia |
0.8 million barrels/day |
29. 0.62 mb/d |
In 1996, the USA was the world's leading
producer, with about 7.5 million barrels per day.
Note: Former Soviet Union production has
dropped from the highest in the world, at around 12 million b/d in the
late 1980s, but it has stabilized since 1993 and began to increase significantly
by 1998. 86% of "former Soviet Union" production is from Russia, with Kazakstan
at 7% and Azerbaijan at 3%.
The 20
countries on this list produce about 57 million b/d, about 87% of world
production. OPEC countries account for about 24 million b/d, or 40% of world
production.
Are you surprised to
see Norway so high on this list? There are very few sedimentary rocks
onshore Norway. All of this production comes from offshore, in the North
Sea.
Texas contains/contained about 15
billion barrels (East Texas Field, at about 5 billion, is the largest field
in the 48 states. It is a regional stratigraphic trap in Upper Cretaceous
fluvio-deltaic sandstones.)
Prudhoe
Bay = about 9-10 billion barrels. It is a broad culmination on the
Barrow Arch, and the reservoirs are transgressive marine to non-marine
conglomerates and sandstones of Triassic age. The reservoir contains a lot of
gas, too.
|
|
The following table is based on various sources and is as
accurate as I could make it. It represents CUMULATIVE production, not
current production, PLUS estimated reserves, so it is a measure of all the oil
that was/is contained in the fields. Some, such as most of the California
fields, have been producing since the 1930s and are significantly depleted. Most
(more than 10 billion barrels) of Prudhoe Bay's oil has been produced.
|
10 largest oil fields in the US
| Field, State |
Cumulative Production
+ Est. Reserves |
| 1. Prudhoe Bay, Alaska |
10+ billion barrels |
| 2. East Texas |
6.0 billion barrels |
| 3. Wilmington, California |
2.8 billion barrels |
| 4. Midway-Sunset,
California |
2.2 billion barrels |
| 5. Kern River, California |
1.95 billion barrels |
| 6. Yates, West Texas |
1.95 billion barrels |
| 7. Wasson, Texas |
1.8 billion barrels |
| 8. Elk Hills, California |
1.5 billion barrels |
| 9. Kuparuk River, Alaska |
1.5 billion barrels |
| 10. Panhandle, Texas |
1.4 billion barrels |
The largest oil field in the
world (Ghawar in Saudi Arabia) contains an
estimated ultimate recoverable 75 billion barrels of oil, or more than
seven times Prudhoe Bay, in Upper Jurassic shallow-water carbonates in a broad
anticline.
Chevron is working with Kazakstan
and others to develop the huge Tengiz field near the Caspian Sea
(estimates run from 15 to 26 billion barrels recoverable, from what amounts to
an oil-filled paleo-atoll, or reef) with a goal of producing about 700,000
barrels per day from this one field -- equal to more than 10% of the oil
production of the entire United States.
|
|
Numbers in the following table are mostly ranges for
estimated ultimate recoverable reserves. Sometimes you see larger numbers that
represent original oil in place -- all of which cannot be produced. Some of the
fields in this list are essentially completely depleted (e.g., Romashkino). |
21 largest oil fields
in the World
| Field, Country |
Size estimate |
| 1. Ghawar, Saudi Arabia |
75-83 billion barrels |
| 2. Burgan, Kuwait |
66-72 billion barrels |
| 3. Bolivar Coastal,
Venezuela |
30-32 billion barrels |
| 4. Safaniya-Khafji, Saudi
Arabia/Neutral Zone |
30 billion barrels |
| 5. Rumaila, Iraq |
20 billion barrels |
| 6. Tengiz, Kazakstan |
15-26 billion barrels |
| 7. Ahwaz, Iran |
17 billion barrels |
| 8. Kirkuk, Iraq |
16 billion barrels |
| 9. Marun, Iran |
16 billion barrels |
| 10. Gachsaran, Iran |
15 billion barrels |
| 11. Aghajari, Iran |
14 billion barrels |
| 12. Samotlor, West Siberia,
Russia |
14-16 billion barrels |
| 13. Abqaiq, Saudi Arabia |
12 billion barrels |
| 14. Romashkino, Volga-Ural,
Russia |
12-14 billion barrels |
| 15. Chicontepec, Mexico |
12 billion barrels |
| 16. Berri, Saudi Arabia |
12 billion barrels |
| 17. Zakum, Abu Dhabi, UAE |
12 billion barrels |
| 18. Manifa, Saudi Arabia |
11 billion barrels |
| 19. Faroozan-Marjan, Saudi
Arabia/Iran |
10 billion barrels |
| 20. Marlim, Campos,
Brazil |
10-14 billion barrels |
| 21.Prudhoe Bay, Alaska,
USA |
9.9 billion barrels |
Natural Gas
|
The largest gas
fields in the world are in the West Siberian Basin (including Urengoy,
Yamburg, Zapolyarnoye), and contain more gas (well over 1200 trillion cubic
feet for the whole basin) than in all the known gas fields in the US,
including Alaska (the US has a lot of additional gas associated with oil
fields). Reservoirs are Cretaceous fluvial clastics in drape anticlines above
Triassic-Jurassic horsts.
|
|
The following table shows estimated proved gas reserves
for the top 12 countries. Numbers for gas reserves may be misleading, as they
may or may not include "associated" gas (as in associated with oil fields).
Other estimates, for example, put Canada much higher on the list. Source for
both of the following tables is mostly the US Energy Information Administration, which has
a very useful web site for statistics. |
12 top natural gas countries
(by reserves)
| Country |
Reserve estimate |
| World |
4,980 trillion cubic feet |
| 1. Russia |
1,748 trillion cubic feet |
| 2. USA |
1,475 trillion cubic feet |
| 3. Iran |
742 trillion cubic feet |
| 4. Qatar |
245 trillion cubic feet |
| 5. Abu Dhabi |
188 trillion cubic feet |
| 6. Saudi Arabia |
185 trillion cubic feet |
| 7. Venezuela |
140 (maybe 450) trillion cubic feet |
| 8. Algeria |
128 trillion cubic feet |
| 9. Turkmenistan |
100 (maybe 535) trillion cubic feet |
| 10. Kazakstan |
83 trillion cubic feet |
| 11. Canada |
67 trillion cubic feet |
| 12. Uzbekistan |
60 trillion cubic feet |
| Specific values for gas field sizes are even harder to pin
down. The following list is not necessarily in exact order and would change with
other estimators; it is not perfectly clear in each case whether cumulative
production or estimated remaining reserves is meant. There are some 20 fields in
West Siberia that exceed 35 TCF each. Use this table as a starting point.
Numbers are in trillion cubic feet (TCF) and should be viewed as ball-park
figures. |
22 largest natural gas fields
in the World
| Field, Country |
Size estimate |
| 1. Urengoy, West Siberia,
Russia |
>275 trillion cubic feet |
| 2. Yamburg, West Siberia,
Russia |
prob. >200 trillion cubic feet |
| 3. Orenburg, Volga Region,
Russia |
prob. >200 trillion cubic feet |
| 4. Schtockmanov, Barents
Sea, Russia |
prob. >200 trillion cubic feet |
| 5. North Dome, Qatar |
241 trillion cubic feet |
| 6. Umm Shaif + Abu
el-Bukush, Abu Dhabi |
175 trillion cubic feet |
| 7. Zapolyarnoye, West
Siberia, Russia |
150+ trillion cubic feet |
| 8. Kharasevey, West Siberia,
Russia |
150+ trillion cubic feet |
| 9. Bovanenko, West Siberia,
Russia |
125 trillion cubic feet |
| 10. Medvezh'ye, West
Siberia, Russia |
100+ trillion cubic feet |
| 11. Hassi R'Mel, Algeria |
100 trillion cubic feet |
| 12. South Pars, Iran |
100 trillion cubic feet |
| 13. Panhandle-Hugoton, USA
(TX-OK-KS) |
80 trillion cubic feet |
| 14. Groningen,
Netherlands |
66 trillion cubic feet |
| 15. Ghawar Oil Field, Saudi
Arabia |
60 trillion cubic feet |
| 16. North Pars, Iran |
48 trillion cubic feet |
| 17. Dauletabad-Donmez,
Turkmenistan |
47 trillion cubic feet |
| 18. Karachaganak,
Kazakstan |
46 trillion cubic feet |
| 19. Shatlyk, Turkmenistan |
35 trillion cubic feet |
| 20. Yashlar, Turkmenistan |
27 trillion cubic feet |
| 21. Blanco (San Juan), USA
(NM) |
23 trillion cubic feet |
| 22. Gazli, Uzbekistan |
20 trillion cubic feet |
USA
In the U.S., about
35% of oil and gas production comes from reservoirs of Tertiary age
(largely in the Gulf Coast and California); about 25% is from reservoirs
of Pennsylvanian age (West Texas, Rockies, Midcontinent), and about 12%
is from reservoirs of Cretaceous age. Sandstone reservoirs account for
70% of fields; limestone = 16%; dolomite = 11%.
The Offshore US Gulf of Mexico has become one of the
"hottest" exploration areas in the world, just a few years after many had
declared it the "Dead Sea" for exploration potential. Dramatic improvements
in 3-D Seismic technology (increasing success rates to as much as
80%, up from less than 40%) and deepwater drilling methodology are
largely the basis for this resurgence. And several very nice discoveries have
not hurt one bit. Reserves in discovered deep-water (>500 meters) fields
alone are estimated at nearly 1.5 billion barrels, with two fields
(Shell's Mars and BP's Crazy Horse, renamed Thunder Horse) at about 100,000,000
barrels or more.
The top ten producing states by
current (early 2002) daily production are Louisiana, Texas, Alaska,
California, New Mexico, Oklahoma, Wyoming, Kansas, North Dakota, and
Mississippi. Illinois is not a present-day big producer, but until about
1970, Illinois was the 4th largest cumulative producer of oil (after TX, LA, and
OK).
IN 1994,
U.S. OIL IMPORTS EXCEEDED 50% OF CONSUMPTION FOR THE FIRST TIME. In 1999, US
imports were about 11 million barrels per day, compared to our domestic
production of 6 million barrels per day. You do the math.
|
SOURCES OF US OIL IMPORTS
|
The Map below is based on data from Energy
Information Administration for December, 1999. Note that the "Big Four"—Saudi
Arabia, Canada, Mexico, and Venezuela—alternate their ranks fairly often. Some
months Venezuela is No. 1, sometimes it is Canada. Something like 15% of our
imports come from each of these countries. (Note: on the map, 250 million
barrels and 54% refer to our total imports, including the 10% that comes from
countries not indicated, such as Kuwait, Algeria, the United Arab Emirates, and
Indonesia.)
|
|
One barrel of crude oil makes about 19˝ gallons of gasoline,
9 gallons of fuel oil, 4 gallons of jet fuel, and 11 gallons of other products,
including lubricants, kerosene, asphalt, and petrochemical feedstocks to make
plastics. The ultimate cost of a gallon of gas at the service station depends
mostly on the price of crude oil, and most of the profit after expenses goes to
the owner-producers of the oil, whether they are governments or oil producing
companies. The following table shows an approximate breakdown of the costs that
go into a gallon of gas in the US. Almost everywhere in the world outside the
US, people pay MUCH more for gasoline, largely because of much larger government
taxes, which amount to around $3 to $4 per gallon in many European countries. In
the categories "Production cost" and "Producer profit" the values show a range
from Saudi Arabian production to USA production. Naturally, all the other values
may vary some as well; these are general estimates. |
Costs to produce and sell a gallon of gasoline in the US
| Expense |
Amount |
| Production cost |
15˘ to 60˘ |
| Producer profit |
53˘ to 8˘ |
| Refining cost |
13˘ |
| Marketing cost |
5˘ |
| Transportation cost |
15˘ |
| Retailer cost |
6˘ |
Refiner, marketer,
transp. & retailer profit |
10˘ |
| US Taxes |
19˘ |
| Average state taxes |
23˘ |
| TOTAL |
$1.59 |
|
If you're paying less than $1.59, it
probably means that the independent gas dealer on the corner is only getting a
profit of 1˘ or 2˘ a gallon rather than the 5˘ or 6˘ average, or else the price
of oil has gone down and the owner-producers' profits are less. A higher cost
may mean it is summer, when special refining is required for oxygenated fuels,
and it costs more to produce more for increased demand.
|
Thanks to Dick Gibson
Gibson Consulting, 301 N. Crystal St., Butte, MT 59701
E-mail your questions and
comments
|
750 billion barrels have been
produced.