Petroleum Consumption Vs Production (II)

With the Consumption Vs Production matrix, we can compare the differences between the consumption and the production of each country in percentages (see Table 1 “Consumption VS Production by countries”).

 Table 1 “Consumption VS Production by countries”. Red imports, Green exports.

U.S.A. In the case, the US has a deficit of 51.47%. In other words, the US only produces one half of its oil needs.

Net Importers. Other countries have a worst scenario. Japan, Korea and the European countries (except UK), are industrial societies with large oil needs, but they do not produce any significant amount of oil. They must import from 90% to almost 100% of their needs.

Net Exporters. On the other hand, we have the OPEC countries, Brazil, Canada, Russia and Mexico, whose have enough oil to cover their needs and export to third countries. The most exporter countries are (in this order of world exportations):  Russia 10.50%, Saudi Arabia 9.00%, Iraq 3.32%, Iran 3.25%, United Arab Emirates 3.20%, Venezuela 2.77%, Canada 1.88%, and Mexico 1.28%. But in relative terms, UAE has the record. They export seven times what they consume.

China and India. The two most populous countries in the world, have different situations. While China covers its oil consumption with its own production, India imports 2/3 of their needs.

Graphic 1 “Consumption VS Production by countries”.

Summary and conclusion:

The U.S. consumes the double than its produces. This only can cause problems:

1. Economic.

Money is flying away of the country. U.S. has recorded negative trade balance in Petroleum. Despite the tendency is to slowly decline the importation needs last years, the US brings the half of its needs from foreign countries.

2. Strategic.

Short term: U.S. is energetically dependent of third producer countries. These countries are principally OPEC and Russia, and definitely, these countries are not allies. This means that:

1. They can “blackout” U.S.A in case of a war against them.
2. The huge amount of money that is going to these countries is escaping to our control, and could be used in illegal activities against the Country.

Long term: As shown in EIA's International Energy Outlook 2011, the global supply of crude oil, other liquid hydrocarbons, and biofuels is expected to be adequate to meet the world's demand for liquid fuels for at least the next 25 years. After that, nobody knows. The experience tells us that the technical improvements allow us to discover and produce more and more oil fields, giving us some bonus years over these 25 years. We need and Energy Strategic Plan.

3. Employment.

The National Oil and Gas Sector is the motor of Texas economy, and one of the most important sectors in the U.S. One fifth of the new employments in the country is created in the Oil and Gas sector in Texas. This denotes the importance of this industry in real life, and in political decisions. We have passed the Peak Production in onshore Texas, but there is an encouraging future in the Gulf of Mexico´s deepwater.

4. Future.

Oil is not a renewable raw material, so the only way to face the future is to decrease progressively the consumption of oil to the level of the Western European Countries (half barrels per person than the actual rate). Then, consumption would be equal to production for some years, while the country develops alternative energies to reach its necessities and the longed energetic self-sufficiency (Nuclear, Windmills, Hydroelectric and Solar combined with Oil and Gas).

References:

U.S. Energy Information Administration

“Reserves of Hydrocarbons”

http://www.eia.gov/tools/faqs/faq.cfm?id=38&t=6

WIKIPEDIA

“List of countries by oil Consumption”

http://en.wikipedia.org/wiki/List_of_countries_by_oil_consumption

“List of countries by oil Production”

http://en.wikipedia.org/wiki/List_of_countries_by_oil_production