ENI releases second worldwide oil and gas review

Total worldwide consumption of oil reached 75.988 million b/d in 2001, an increase of 0.1% from a year ago, according to Italy's ENI SPA in its world oil and gas review released last month.

By OGJ editors

HOUSTON, July 17 -- Total worldwide consumption of oil reached 75.988 million b/d in 2001, an increase of 0.1% from a year ago, according to Italy's ENI SPA in its world oil and gas review released last month.

ENI published its first worldwide statistical review last year (OGJ Online, June 18, 2001).

Among other tabulations, the review noted that:

-- Worldwide production of crude oil, nonconventional oil, and natural gas liquids was 75.226 million b/d in 2001, a 0.1% increase from a year ago.

-- Global demand for natural gas reached 2.503 trillion cu m (tcm) in 2000, an increase of 4.4% over 1999 figures.

-- Global production of natural gas reached 2.543 tcm in 2001 vs. 2.506 tcm in 2000.

Like the first survey, the second review tracks oil and gas production, reserves consumption, exports, and imports by country and by geographic and economic area. In addition, this year's report has been expanded to include a section on the changing quality of crude oil production.

Regarding the analysis of the quality of the world's crude, Vittorio Mincato, ENI chief executive, said, "This is an important area for which information is somewhat fragmentary and has therefore demanded considerable efforts in the gathering and elaboration of data. The final result has allowed us to classify around 90% of world production and consequently have a broadly complete picture of the current situation.

"The importance of this analysis lies in the fact that, around the world, the environmental quality specifications for oil products are increasing and are increasingly stringent," Mincato said, adding, "Sometimes this leads to imbalances in the supply of crude oil and the product characteristics of the effective demands of the market. The refining sector has not always been able to guarantee a balance between supply and demand, and this leads to an inevitable volatility in terms of the price of oil."

Oil, gas production, consumption
ENI found that the top oil producers in 2001 were Saudi Arabia, the US, and Russia. These nations produced 8.528 million b/d, 8.091 million b/d, and 7.014 million b/d of oil, respectively.

ENI's review found that 14 of the 20 top oil-producing nations are also among the top 20 countries producing the most natural gas. "Oil, the energy source which dominated the 20th century, goes hand in hand with natural gas, which will dominate the 21st century," the company said.

Russia, the US, and Canada were among the top natural gas producers in 2001, producing 575.4 billion cu m (bcm)/year, 548.7 bcm/year, and 186.2 bcm/year, respectively. Russia also holds the most reserves, at 46.052 tcm. Reserves with the longest life, however, are held by Qatar, at 461 years.

By far, North America is the largest consumer of both oil and natural gas, ENI reported. "The US, in particular, holds the record for oil consumption?on average, around 20 million b/d, and natural gas, about 645 bcm/year (in 2001)," ENI said. Japan, at 5.423 million b/d, China, at 4.854 million b/d, and Germany, at 2.814 million b/d, round out the world's top oil consumers.

Geographic concentration
"In terms of the geographic concentration of oil and gas reserves (and even production, albeit to a lesser extent), there is a strong geographic concentration of hydrocarbon consumption in areas (that) have very limited reserves," ENI noted.

The main oil-producing region, the Middle East, has the most oil and gas reserves, ENI npted. Saudi Arabia is still world leader for oil reserves, ENI reported, adding that in 2001, the kingdom had reserves of nearly 262 billion bbl, or more than 25% of world reserves.

The nation holding the highest oil reserves-to-production ratio in 2001 was Iraq. That country's reserves will last for 130 years at current rates of production, ENI found.

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