Oiling Security Bolts

Sign Posts:

P      Daily demand for Oil projected to increase by 35 million barrels per day by 2030.

P      Increases in oil demands will come from emerging economies of Asia and Africa

P      Global move to diversify energy sources and reduce reliance on conventional liquids and gas – through increasing production of bio-fuels, oil sands, ultra-heavy oil etc.

P      A large majority 62% of oil reserves remain concentrated in the OPEC Middles East states.

Drivers:

P      Last Oil reserves found in 1967, since then only smaller reserves have been found. Evidence that oil reserves have already reached their peak and begun a decline in production due to maturing of their fields.

P      It is estimated that total investment worth $20 trillion is required by 2030 to feed the world demand for energy. Of this $4 trillion is required for the Oil sector

Impact:

P      Disruptions in oil and natural gas prices and supplies

P      Formation of new trade cartels or geopolitical blocs, oil and gas hegemonies

P      Threats of attacks on energy resources or infrastructure

P      Spurred investment and development on alternative energies, energy efficient technologies to reduce reliance on oil producing countries.