Fossil Fuels
Geopolitics of Oil Exploration
Saudi Arabia
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| SOURCE : http://www.leblogfinance.com /2011/01/petrole-le-cours-chute-en-prevision-dune-eventuelle-hausse-de-production.html |
Oil is a natural resource (fossil energy) and non-renewable, formed under the surface of the Earth.
Oil is the most globalized energy market. The largest producer and exporter of oil in the world is Saudi Arabia, which holds 18 % of oil reserves in the world. Saudi Arabia also has a hundred oil and gas deposits.
Being a source of wealth and economic success for the exploiting countries (Saudi Arabia), oil allows governance energy markets today and in the world.
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| Source : http://www.interet-general.info/spip.php?article19044 |
Oil is the main resource of Saudi Arabia. Indeed, until 1980, production increased significantly, from 547,000 barrels per day on average in 1950 to 9.99 million in 1980. For example, Saudi Arabia has become the largest oil producer in OPEC (Organization of Petroleum Exporting Countries). Founded in 1960, OPEC is the oldest institution directly involved in the production and trade of oil in the world. Today, OPEC countries hold over 75 % of global oil reserves and accounts for 43 % of world production.
With OPEC, Saudia Arabia plays an important role in the governance of markets. This role is important too with the the oil field : Ghawar.
Indeed, the largest oil field in Saudi Arabia and the largest deposit in the world is the Ghawar field. This oil field was discovered in 1948.
In the article The King of Giant Fields, R. Sorkhabi informs us that the "Ghawar had produced about five billion barrels of oil per day in the past three Decades." Accordingly the last year, "output from Ghawar Accounted for 62.5% of Saudi Arabia's crude production." So, today, 6% of the world's oil production comes from the Ghawar. However, the basin consist not only oil but also gas resources.
Stratigraphic composition of Ghawar
The reservoir of Ghawar has 3 different rocks. First, the bedrock is limestone of the Hanifa formation. It is very rich in organic carbon. Because of the high temperature at this level, this rock is cooked and formed a fluid after its back, was found blocks, creating the oil reservoir. Ghawar Precambrian comprises a base that determines the relief. Then there is sediment era Octovicienne, Silurian , Carboniferous , Permian , Triassic , Jurassic, Cretaceous and Cenozoic.
SOURCE :
R. Sorkhabi (2010) The King of Giant Fields –
Vol.7, No.4
http://www.geoexpro.com/articles/2010/04/the-king-of-giant-fields
The decline in Ghawar?
The Ghawar Oil Field is by far the large largest conventional oil field in the world and accounts for more than half of the cumulative oil output of Saudi Arabia.
Ghawar provides much oil in Saudi Arabia. For Bandar D.Al-Anazi, Riyadh University (2007), What you know about The Ghawar Oil Field, Saudi Arabia ?: “This field would have a capacity of 55 billion barrels, and it currently produces 5 million barrels per day”.
In conclusion, we can say that Saudi Arabia is a country that is modernizing but must still diversify its resources to meet the needs of a growing population. In addition, as a member of OPEC, Saudi Arabia today isn't a regulator of the oil market. OPEC is a cartel of producers who seeks above all to defend its own interests. In other words, it wasn't an optimal functioning of the market because there are many differences among its members. Finally, as the largest producer and consumer of oil in the world, Saudi Arabia plays an important role in the governance of markets within OPEC and worldwide. It is one of the main actors of governance, allowing him good relationship with Western countries and its social, political and cultural development.
The Ghawar Oil Field is by far the large largest conventional oil field in the world and accounts for more than half of the cumulative oil output of Saudi Arabia.
Ghawar provides much oil in Saudi Arabia. For Bandar D.Al-Anazi, Riyadh University (2007), What you know about The Ghawar Oil Field, Saudi Arabia ?: “This field would have a capacity of 55 billion barrels, and it currently produces 5 million barrels per day”.
In conclusion, we can say that Saudi Arabia is a country that is modernizing but must still diversify its resources to meet the needs of a growing population. In addition, as a member of OPEC, Saudi Arabia today isn't a regulator of the oil market. OPEC is a cartel of producers who seeks above all to defend its own interests. In other words, it wasn't an optimal functioning of the market because there are many differences among its members. Finally, as the largest producer and consumer of oil in the world, Saudi Arabia plays an important role in the governance of markets within OPEC and worldwide. It is one of the main actors of governance, allowing him good relationship with Western countries and its social, political and cultural development.
Chloé Julien
