Global Oil and Gas Industry Analysis By: Oluwatoyosi Oyekan. Badm Professor Reynolds.

Natural History ▪ Petroleum is a naturally occurring liquid found in rock formations. ▪ It consists of a complex mixture of hydrocarbons of various molecular weights, plus other organic compounds. ▪ It is generally accepted that oil is formed mostly from the carbon rich remains of ancient plankton after exposure to heat and pressure in the Earth's crust over hundreds of millions of years. ▪ Over time, the decayed residue was covered by layers of mud and silt, sinking further down into the Earth’s crust and preserved there between hot and pressured layers, gradually transforming into oil reservoirs.

Early History ▪ Petroleum in an unrefined state has been utilized by humans for over 5000 years. Oil in general has been used since early human history to keep fires ablaze and in warfare. ▪ Its importance to the world economy advanced slowly, with whale oil used for lighting in the 19th century, wood and coal used for heating and cooking well into the 20th century. ▪ The Industrial Revolution generated an increasing need for energy which was met mainly by coal, and with other sources including whale oil. However, when it was discovered that kerosene could be extracted from crude oil and used as a lighting and heating fuel, petroleum was in great demand, and by the early twentieth century had become the most valuable commodity traded on world markets

List of countries by Oil production. CountryProduction 1 United States13,973,000 2 Saudi ArabiaSaudi Arabia (OPEC)OPEC11,624,000 3 Russia10,853,000 4 China, People's Republic of4,572,000 5 Canada4,383,000 6 United Arab EmiratesUnited Arab Emirates (OPEC)OPEC3,471,000 7 IranIran (OPEC)OPEC3,375,000 8 IraqIraq (OPEC)OPEC3,371,000 9 Brazil2,950, Mexico2,812, KuwaitKuwait (OPEC)OPEC2,767, VenezuelaVenezuela (OEC)OEC2,689, NigeriaNigeria (OPEC)OPEC2,427, QatarQatar (OPEC)OPEC2,055, Norway1,904, AngolaAngola (OPEC)OPEC1,756, AlgeriaAlgeria (OPEC)OPEC1,721, Kazakhstan1,719, Colombia1,016, India978, Oman951, IndonesiaIndonesia (OPEC)OPEC911, United Kingdom906,000

The oil industry is one of the most powerful branches in the world economy. More than four billion metric tons of oil is produced worldwide annually. Nearly one third of this amount is generated in the Middle East region. Saudi Arabia and Russia are the world’s leading oil producers, each responsible for around 13 percent of the total global production. The United States is the third-largest producer, generating over 12 percent of the world's total oil production. Oil (and gas) companies are among the largest corporations worldwide. Among the top ten companies worldwide based on revenue, six are in the oil industry. In 2015, Anglo- Dutch giant Royal Dutch Shell reported almost 265 billion U.S. dollars of revenue. Thus, Shell was the seventh-largest company worldwide based on revenue in ExxonMobil from Irving, Texas, was the eighth-largest company based on revenue in 2015, reporting some 260 billion U.S. dollars for the same year. However, ExxonMobil claims the highest market value within this industry, as well as having the second- highest market value of all companies worldwide in 2015.

Russia : Russia's situation is getting the most attention these days. The country's is hugely dependent on oil and gas production with oil revenues making up 45% of the government budget and the sharp fall on prices has been ruinous. Economists now estimate that Russia's GDP will shrink at least 4.5 percent in 2015 if oil says below $60 per barrel. The plunging price of oil has also caused the ruble's value to collapse which is leading to panic inside Russia and a rise in inflation, as imports become drastically more expensive. Many Russians, worried that their savings may vanish, have been rushing out to buy cars and washing machines anything that has more lasting value than currency. Saudi Arabia : There's no question that Saudi Arabia, the world's second-largest crude producer (after Russia), will suffer financially from cheap oil. If oil stays at around $60 per barrel next year, the government will run a deficit equal to 14 percent of GDP. For now, however, the Saudis are toughing this out — and show no sign of trying to prop up prices as they have in the past. The kingdom has built up a stockpile of foreign currency worth some $750 billion, which it will use to finance its deficits

The United States : In the US, meanwhile, a fall in crude prices will have both positive and negative impacts. For many people, it will offer an excellent economic boost: cheaper oil means lower gasoline prices which have fallen to $2.04 per gallon, the lowest since The EIA projects that US drivers will spend about $550 less on gasoline in 2015 than they did in 2014, assuming prices stay low. That will give consumers more money to spend on other things. But it's not all good news. Oil-producing states like Texas and North Dakota are likely to see a drop in revenues and economic activity. The falling price of oil is also putting severe pressure on Alaska's state budget.