Russia and West Africa Play Increasingly Important Roles in the Oil and Gas Arena, 1-16-08
There is an increased global focus today on energy as a societal, sociopolitical and strategic resource. In the U.S., the Department of Energy estimates oil production at 5.1 million barrels per day from 501,000 wells during 2006. While production in many of America's largest fields, such as the North Slope in Alaska, is down substantially, investments in offshore production and enhanced recovery in older fields has paid off handsomely. Meanwhile, America's use of petroleum has led to a 288% increase in annual petroleum imports from 7,469,646 billion BTUs in 1970 to 29,029,406 billion BTUs in 2006. In addition, there is a greater focus than ever before on the impact of energy consumption on the environment. This makes for a highly volatile market with sweeping trends rapidly altering the industry. According to a recent report by Plunkett Research, Ltd., some of the most fascinating of these trends include:
1) The U.S. Electric Grid Needs Retooling.
The grid is one of the most reliable electricity delivery platforms in the world, but it is far from perfect, and deregulation of the electricity industry has created intense problems. Unfortunately, much of this grid was designed and constructed with technology developed in the 1950s and 1960s, and it was never intended to carry the amazing amount of power that today's electricity-hungry Americans consume. Simply put, the grid is out of date.
2) Canada's Tar Sands Reach Commercial Production Levels.
The tar sands (also referred to as "oil sands") found in Canada, Venezuela and other locations throughout the world were historically regarded as unrecoverable assets by many members of the energy industry. But through a combination of decades of work, starting in the 1970s, and the sustained rise in oil prices, the process of turning tar sands into crude oil has become a viable business.
3) Russia and West Africa Play Increasingly Important Roles in the Oil and Gas Arena.
OPEC (the Organization of Petroleum Exporting Countries) nations are slowly losing some of their dominance in oil production, as output of crude oil in Russia and Africa skyrocket. Russia's crude output reached 9.53 million barrels daily in 2005-making Russia the second largest producer after Saudi Arabia.
To find out more about these exciting trends and others, check out Plunkett’s Energy Industry Almanac 2008, or go to www.plunkettresearch.com and sign up for a subscription to Plunkett’s completely up-to-date online database!
About Plunkett Research, Ltd.
Plunkett Research, Ltd. is a leading publisher of complete business research and analysis resources designed to enable professionals in marketing, research and finance to access complete trends analysis, statistics, technology analysis and financial analysis of the world’s most exciting industries. For more information, visit www.plunkettresearch.com, or call 713.932.0000.