GEOG 122 Lecture Notes - Lecture 5: Strategos, 1979 Energy Crisis, Six-Day War
Document Summary
Le(cid:272)ture 5: the geopoliti(cid:272)s of oil: oil. 1960s estimated that there would be no more oil in 2005! New technology is stretching date of oil exhaustion toward 2020. New oil sands, shales & deep-water: off-shore brazil, israel, newfoundland, arctic. Middle east has 2/3 of conventional oil reserves. Outside the middle east: russia & venezuela. Geography of demand = highly correlated with economic development. North america: u. s. consumed 25% of world oil production in 2002. Western europe, japan and fast rising: china & india. Currently (2016), excess oil supply with build-up of new u. s. oil shales and older. Prices driven down below production price of oil shales/sands. Opec (organization of petroleum exporting countries) are trying to drive out new suppliers with higher production costs. Even at /barrel, saudi arabia is still making money but oil sands and oil shales are heavily burdened by operating expenses and are unable to generate revenue (in the red)
