The Crude Awakening

1
The Crude Awakening
2
What do we really know about oil?
3
Along with coal, Oil fueled the industrial
revolution.
4
Oil lubricates the wheels of industry
5
Refined into gasoline
6
OIL drives the world.
7
As diesel fuel, oil moves the masses
8
enables the transport of goods
9
even moves mountains.
10
And as jet fuel
Oil has given us wings to fly.
11
Oil heats our homes
12
and is a key raw material in thousands of
everyday products.
13
(No Transcript)
14
(No Transcript)
15
(No Transcript)
16
(No Transcript)
17
(No Transcript)
18
(No Transcript)
19
In short
20
oil impacts the global economy like nothing else!
21
American oil misconceptions
22
We get most of our oil from the Middle East.
23
Fact Only one Mid-East country is in the top
five oil importers to the U.S.
24
Saudi Arabia 4
25
Only two Mid-East countries are in the top ten
oil importers to the U.S.
26
Saudi Arabia 4 Iraq 6
27
Only three Mid-East countries are in the top
fifteen!
28
(No Transcript)
29
So where does the rest of our oil come from?
30
1
31
2 Mexico
32
The Top 15 CANADA MEXICO VENEZUELA SAUDI
ARABIA ANGOLA IRAQ NIGERIA BRAZIL KUWAIT ALGERIA C
OLOMBIA EQUATORIAL GUINEA ALGERIA RUSSIA CHAD
33
Misconception 2
34
We dont drill for oil anymore in the U.S.
35
Fact The U.S. is the worlds 3rdlargest oil
producer, behind only Saudi Arabia and Russia.
36
We produce 2X as much oil as Iran.
2X
37
3X
almost 3X more than the United Arab Emerits and
Kuwait
38
And over 4X more than Iraq.
4X
39
So whats the problem?
40
Consumption.
con
41
Until 1970, the U.S. produced all the oil it
needed. No imports!
42
Three years later we were out of gas!
43
Today only 42 of all oil consumed in the U.S.
is produced domestically.
44
Question
45
Do we Americans drive too much?
46
Fact About 70 of all U.S. oil consumption is
used for transportation.
47
BUT, only about 46 of it is converted to
gasoline.
48
So why does it seem like the
Middle East has us over a barrel?
49
Answer
50
Because six of the twelve nations that make up
OPEC are Middle Eastern.
51
These countries working as a block can
effectively influence the world oil market price.
52
So we have very little control over prices at
the pump?
53
Not exactly.
54
The U.S. consumes 2.5X more oil than the second
place nation on earth
55
China.
56
With so much buying power
57
America can dramatically effect world oil prices
58
by raising or reducing usage.
59
This occurred in 2008.
60
Across the U.S. gas prices averaged just over
4.00 per gallon.
61
We reduced usage by 20 and...
62
Oil prices plummeted.
63
So where do we go from here?
64
Predictions
65
Oil will continue to be the most significant
influence on global financial markets.
66
In the short-term, usage reductions by
industrialized nations like America
67
will quickly result in decreased production by
OPEC in order to keep prices high.
68
Developing nations are increasing oil demand at
an exponential rate.
69
China is expected to become the top oil consumer
by 2015.
70
So even if the U.S. could reduce imports to a
trickle
71
global oil demand will still outstrip supply.
72
World oil production is expected to peak in 2012
Prediction
73
and then fall off dramatically as reserves are
depleted.
Prediction
74
But population projections continue to rise
through 2050.
Prediction
75
More people will only further stress our ability
to meet energy needs.
Prediction
76
And while, alternative sources grow increasingly
viable
77
costs are still too high
to have significant global impact.
78
Sofor the foreseeable future
79
Oil looms large!
80
And will no doubt play a key role in the
fulfillment of end-times prophecy.
81
All oil consumption statistics are current as of
February 2009. They were provided by the U.S.
Federal Government Energy Information
Agency. Global Oil Production and Population
projections were provided by the United Nations.