The Battle for Oil

24 May

The US domestic consumption of oil exceeds 20 million barrels per day, 26% of total World consumption, an amount higher than the yearly consumption for all of Europe and all of Africa combined. U.S. oil imports constitute 56% of total consumption and are expected to reach 66% by 2020.

The U.S. contains only 2.8% of total proven world oil reserves. Two-thirds of the world’s proven oil and natural gas reserves are in the Middle East (notably Saudi Arabia, the Gulf States, Iran and Iraq). Very substantial oil and natural gas reserves are located in the overlapping region of the Caspian Sea basin (Azerbaijan, Kazakhstan, Russia, Turkmenistan and Iran). Tentative estimates provided by the Energy Information Administration, place total (proven and possible) oil reserves at 243 billion barrels, or in excess of 25% of present global reserves),1 Iraq currently produces 11% of the world’s oil and it ranks only second to Saudi Arabia in the size of its reserves (112 billion barrels). Exploitation costs are less than half those of deep sea drilling. Direct access to the Persian Gulf and the Indian Ocean ensures strategically secure oil supply routes. The Anglo-American oil giants (BP, Chevron-Texaco, Shell, Exxon) are all absent from Iran and Iraq, which have signed oil contracts and production sharing agreements with French, Russian and Chinese oil companies. Because of the UN sanctions on Iraq, the agreements signed by Baghdad are not (“officially”) operational.

via The Battle for Oil | Global Research.

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