An employee of the kuwait oil company koc looks at 25 january 2005 the gathering center no. The mena region accounted for around 50 percent of the worlds global oil reserves and around 40 percent of the global natural gas reserves in 20, which makes the region a key. Apr 21, 2014 along with mexico, the two north american neighbors provide 39 percent of us oil imports. The dependence on the energy industry has also allowed states to maintain tight control over national resources, which has led to the. The fraction of crude oil consumed in the us that was imported went from 35% immediately before the 1973 oil crisis, peaked at 60% in 2005, and then returned to 35% by 20 thanks to. Eventually, they struck a gusher more than 1100 feet below ground in majidisuleman, persia iran. Its well known that when it comes to oil, the middle east is king. This piece of land was under water for most of its history. Why does the middle east have such an abundance of fossil. The middle east was responsible for producing nearly 27. The middle east controls more than 60% of the worlds oil reserves and 40% of supplies oil exporting nations could face a 53% fall in revenues this year as oil prices remain low so if oil prices do continue to fall, theyll either spend less. Aug 07, 2009 the middle east controls more than 60% of the worlds oil reserves and 40% of supplies oil exporting nations could face a 53% fall in revenues this year as oil prices remain low so if oil prices do continue to fall, theyll either spend less or find other ways of making the money. Oil was first discovered in the middle east in persia by a british company led by william darcy.
Utilising these factors thus lead to reserves growth through time. Oil reserves include crude oil and lease condensate. The greater middle east adds up to more than 30 countries. Originally created as political instruments, these socalled national oil. The middle east now uses nearly 33% of the oil that it produces, compared to just 20% in 2000. The overall population is about 260 million, growing 2. Cia world factbook unless otherwise noted, information in this page is accurate as of january 1, 2019. The countries in the middle east are renowned for their vast oil reserves in the global market. Energy information administration, form eia23l, annual survey of domestic oil and gas reserves, 2009. This statistic shows oil reserves in the middle east from 1990 to 2018. Saddam felt he could get away with it because of washingtons support during the iraniraq war.
Kuwait had flooded the oil market in early 1990 in protest for what it considered a debt owed by iraq for support during the iraniraq war. The largest proven reserves are in the middle east, but the united states and russia also have large reserves. Sixtyone percent of middle east exports went to western europe. Middle east holds more than 700 billion barrels of oil in its various fields and reserves.
The middle east is home to more oil and more big money pools than anywhere else on earth. Rasoul sorkhabi ideally, changes in the reserves should reflect our science, technology and exploration, but it is also conceivable that political and economic considerations may influence the reporting of reserves. Oil production middle east by country 2018 statista. As the conventional and cheap oil and gas start to dry up in the middle east, a bigger, even better opportunity seeks to replace it. Current estimates place the middle easts conventional oil at about 800 bbo, or nearly half of the worlds proven recoverable crude. Nearly a trillion dollars is being spent on new roads, cellphone users are surging 24 percent a year, and. May 12, 2018 back in the 1970s sheik yamani, the saudi oil minister, commenting on oil shortages of the time said the stone age did not end because they ran out of stones. Originally created as political instruments, these socalled national oil companies nocs face new demands. Mar 04, 2020 the countries in the middle east are renowned for their vast oil reserves in the global market. The middle east oil and the great powers is a great compendium,which i consider should be mandatory reading for anyone who seeks to understand the roots of the social,political and economic upheavals which have occured since the beginning of the idustrial era. The proven reserves cover only 60 years of consumption at 2012 level and the potential reserves may cover more than 100 years of consumption. During that period, billions upon billions of marine creatures, from algae and bacteria up to whatever else. More than half of the worlds known oil reserves are found in the region, although they are not equally distributed.
For many who arent familiar with the region, the middle east. That goes up to 50 percent if you add in venezuela. The middle east sits on much of the worlds supply of oil 5. Jun 07, 2017 if oil prices remain low over the long term, the middle east could suffer a macroeconomic shock of historic proportions. List of books and articles about oil and the middle east. The discovery of vast oil deposits revolutionized the middle easts economy. Jan 22, 2016 an employee of the kuwait oil company koc looks at 25 january 2005 the gathering center no. A secure supply of oil became vital to the western powers ability to wage mechanised warfare. Jan, 2011 as the conventional and cheap oil and gas start to dry up in the middle east, a bigger, even better opportunity seeks to replace it. Oil and its effect on the economies in the middle east. Does the usa need help filling their strategic reserves. For instance, in 1960 when opec formed, the middle east oil reserves were estimated to be 183 bb or 60 % of the worlds total which increased to 343 bb in 1970 55 %, 362 bb in 1980 53 %, 661 bb in 1990 53 %, 697 bb in 2000 55%.
Bbc news business middle east feels oil price pinch. The middle east and oil rich are synonyms as every country in the middle east as the status of oilrich and oilproducing exporters. And the changes that oil and gas money brought to the middle east were phenomenal. Towards the end of the 1980s the growth began to stop as the price of oil fell in an increasingly competitive global market. Jun 17, 2019 this statistic shows oil reserves in the middle east from 1990 to 2018. Its far from uniform regional economic structure can be traced back to before the establishment of the nationstate in the region.
The shade of the country corresponds to the magnitude of the indicator. Darcy recieved a license to explore for oil 7 years earlier. The region is best known for oil production and export, which significantly impacts the entire region through the wealth it generates and through labor utilization. May 12, 2003 for example, last year mexico suddenly changed its claims regarding its oil reserves from 26. A detailed look at the middle east opec oil reserves. Exploration and drilling of wells because of the subterranean origin of petroleum it must be extracted by means of wells. In most middle eastern countries, labormarket participation is now among the lowest in the world this is another way of saying that, in the petro states of the middle east, most of the population is largely irrelevant when it comes to national gdp. Saudi arabia has more than 260 billion barrels of proven reserves.
In the middle east, political regimes and economic performance are intertwined par excellence. The middle east accounts for onethird of global oil production, onesixth of gas production, 48% of proved oil reserves and 38% of proved gas reserves. Fully 65 % are in the hands of stateowned companies such as saudi aramco, with the rest in countries such as russia and venezuela. A guide to middle east risks in 2020 news 12262019 if 2019 was the year when a clutch of middle east markets burst into the mainstream, then 2020 will test. Background the middle east and north africa mena provides a highly diverse picture of economic structures and characteristics. Even nonpetro states in the middle east have economies that depend significantly on oil revenues recycled from. Its discovery and development by stephen hemsley longrigg oxford university press, 1954. Although some countries in the region are better positioned for revenue shortfalls than others, all will have to make tough choices now to ensure future prosperity. The middle eastern members of the organization of the petroleum exporting countries hold 95 percent of the organizations existing spare capacity, making them the suppliers of last resort. What makes the middle east so unique is the concentration of numerous giant fields in the region. The political economy of middle eastern oil mary ann tetreault the middle east is the geographic center of gravity of the world oil industry. With only 2% of the worlds producing wells, the middle easts output is over 30% of the worlds crude.
Based on data from opec at the beginning of 20 the highest proved oil reserves including nonconventional oil deposits are in venezuela 20 % of global reserves, saudi arabia 18 % of global reserves, canada % of global reserves, and iran 15 %. In 1960, when opec was born, the middle east was already an important and growing crude supply region, while north africa was in the early stages of developing its newly found oil reserves. Only a few of those have significant oil reserves and produce enough oil to slake their energy needs and export oil as well. It is estimated that opec members possess 75% of the worlds known reserves of crude petroleum, of which about twothirds are in the middle east. Conventional natural gas reserves in the middle east in 20 according to various sources. What he meant was that the oil age would end when something better comes along, not w. The middle east holds the majority of opecs oil reserves. The economy of the middle east is very diverse, with national economies ranging from hydrocarbonexporting rentiers to centralized socialist economies and freemarket economies. Endowed with half of the worlds known oil and gas reserves, the middle east and north africa mena1 region became particularly during the second half of the twentieth century a cornerstone of the global energy architecture yergin, 1991, 2011. The middle easts wealth of natural resources oil gas.
The middle eastern oilrich countries are those primarily on the arabian plate. Nineteen percent of imported oil comes from the middle east. Ninety percent of the worlds oil reserves are entrusted to stateowned companies. The history of oil in the middle east timeline timetoast. The increase in the export of oil by the major oil exporting countries in the middle east led to a mass influx of foreign workers from arab and asian countries.
Iraq stood to gain 9% more of the worlds oil reserves, from 11 to 20%. Oil is of integral importance in both the foreign and the domestic politics of nearly every country in the region, oil importers as well as oil exporters. Map oil and gas fields, oil and gas pipelines, refineries, export terminals and us military facilities the middle east information. Back in the 1970s sheik yamani, the saudi oil minister, commenting on oil shortages of the time said the stone age did not end because they ran out of stones. At that time, the five founding members of opec held a total of around 200 billion barrels of reserves or twothird of world reserves. Along with mexico, the two north american neighbors provide 39 percent of us oil imports. While the largest importer of oil and petroleum is the united states, the leading producer of oil in. Nov 11, 20 detaining two thirds of the worlds proved liquid oil reserves, the middle east has heavily relied on energy exports to sustain its economic development to the detriment of other industries. Why does the middle east have such an abundance of fossil fuels. Americans have no idea where their oil comes from, in one. To an ordinary person, this advice may not seem funny, but its funny if you understand that the saudis and kuwaitis had to go through hell to get out of the usas grips over supplying the usas strategic reserves after the kuwaitiraq war. The middle east and north africa region has the worlds largest proven reserves of crude oil, accounting for almost 70 percent of global reserves at the end of 2001, but it produces only about 35 percent of global oil output. The region includes four of the top eight oilproducing countries in the world and six of the top 14. Energy information administration, form eia23l, annual survey of domestic oil and gas reserves, 197720, american petroleum institute, 197376.
The map displayed here shows how oil proved reserves varies by country. Saudi arabia has the largest deposits and is the worlds leading oil producer and exporter. According to consulting firm pfc energy, only 7 % of the worlds estimated oil and gas reserves are in countries that allow private international companies free rein. Mar 30, 2010 the middle east is home to more oil and more big money pools than anywhere else on earth. Mar 29, 2015 the middle east now uses nearly 33% of the oil that it produces, compared to just 20% in 2000. The middle east examines some of the trouble spots threatening the global oil supply by blanche, ed the middle east, no. The western hemisphere consumes of its own production. Regional insight middle east energy economics home. Proved reserves of crude oil and lease condensate increased in texas and north dakota, two of the top five. Colin campbell and jean laherrere the end of cheap oil. Out of the middle east, especially saudi arabia has more than 250 billion barrels.
The middle easts oilprice problem project syndicate. A few months back, the saudis advised an oil rich middle east country that they should ask the usa for help. The discovery of vast oil deposits revolutionized the middle east s economy. Alain charles middle east fzllc office 112, loft no 2b, dubai media city, uae t. For example, last year mexico suddenly changed its claims regarding its oil reserves from 26.
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