A Global Perspective:Oil Industry, Old Reservoirs and New Tricks

Even though petroleum and natural gas resources are finite, they remain among the most important sources of energy in the world. The data show that seventy five percent of the world’s energy demand is met by oil and natural gas. Petroleum industry played a major role in shaping the 20th century and will remain a major force driving economic development well into the 21st century. Over the past decades, there have been radical changes in the oil industry resulting in far reaching developments such as; mergers and take-overs, globalisation, government influence and technological advances and innovations. In the first part of the talk, an insight into the oil industry was given and some recent trends were discussed. The talk was concluded by presenting some technological advances and important research issues related to more efficient oil recovery techniques.

Oil is an important commodity rather than being a luxury in our lives. 70 – 75 % of world’s energy demand is met by oil and natural gas resources. Approximately two-thirds of the world’s oil that has been discovered will be left underground using conventional extraction technologies; the oil can be trapped in the tiny pore spaces of the reservoir rock. These can be very difficult to reach, or regions of the reservoir may not be contacted by production wells. With the increasing demand on oil and shortage in tankers and the global refining capacity, oil prices have been increasing significantly in the last few years. Therefore, improved oil recovery (IOR) techniques are becoming increasingly popular to boost production from these resources. There are concerns that increase in production can cope with no more than a 2.4% rise in demand while Goldman Sachs predict global economic growth of 4.2% in 2006. Regrettably, oil is a non-renewable energy source, finite and will inevitably run out some day. The current debate is how long the fossil fuels will continue to be the dominant energy source. There are multiple scenarios on the topic and only time can show which one is the right.