1. Crude oil, natural gas: How are they formed?
Decomposing buried organic material over millions of years through the action of micro-organisms
Overlying layers of sand and silt compress lower layers into sedimentary rock;
Heat and pressure at depth slowly converts buried organic material into petroleum
Petroleum formed deposits may consist mainly of larger (heavy) hydrocarbons, which have the thick, nearly solid consistency of asphalt.
As the petroleum matures, and as the breakdown of large molecules continues, successively “lighter” hydrocarbons are produced.
In the final stages, most or all of the petroleum is broken down further into very simple, light, gaseous molecules— natural gas.
Some natural gas deposits may form from deposits of plant material buried in sediment without association oil

2. World oil reserves - end of 2008
Region
Billion barrels
% of World Total
North America
70.9
5.6%
South & Cent. America
123.2
9.8%
Europe & Eurasia
142
11.3%
Middle East
754.1
59.9%
Africa
125.6
10%
Asia Pacific 42
3.3
Data Source: BP Statistical Review 2009

3. Historical trend of oil reserves
Mid East Total – 754.1bn bbls
= 102 thousand million tonnes
Data Source: BP

4. World oil production
Data Source: BP

5. Oil production in Europe and Eurasia

6. World gas reserves - end of 2008
Region
Trillion Cubic metres
% of World Total
North America
8.87
4.8
South & Cent. America
7.31
4.0
Europe & Eurasia
62.89
34.0
Middle East
75.91
41.0
Africa
14.65
7.9
Asia Pacific
15.39
8.3
Data Source: BP

7. Historical trend of gas reserves
Data Source: BP

8. World gas production

9. Natural gas production in Europe and Eurasia
Data Source: BP

10. Oil trade movements
Source: BP

11. Natural gas trade movements
Source: BP

12. Oil and gas pipelines in Europe
Source: EIA

13. Oil and gas pipelines to Europe

14. Demand in oil and gas
Oil demand in 2009 estimated at 85.0 mb/d (-1.4% or -1.2 mb/d year-on-year) but expected to rise to mb/d in 2010 (+1.8% or +1.6 mb/d versus 2009) to 120 mb/d in 2030
gas demand expected to rise by 41% from 3.0 trillion cubic metres in 2007 to 4.3 tcm in 2030
world energy demand is projected to increase by over 40% between now and 2030.
Non-OECD countries account for over 90% of demand - China and India alone for over half.

15. Outlook for oil demand 15
Source: IEA Oil Market Report 2010 15

16. Oil supply growth non-OPEC16
Source: IEA Oil Market Report 2010