October 2005 Monthly Update: The Future of Oil

Submitted by admin on Thu, 2005-10-20 05:00

Our world is dependent on oil. At present, crude oil accounts for more than one-third of global energy consumption [see EarthTrends' Energy Consumption Table], and demand for oil and other petroleum products is predicted to increase by 40% over the next two decades. The vulnerability of our current system was exposed last month when two major hurricanes in the Gulf of Mexico hampered oil production and drove prices to an all-time high worldwide. Governments, businesses, and citizens of many countries have been affected and are searching for answers about the decidedly uncertain future of oil.

With a finite quantity of oil reserves (see map) and continued growths in demand, particularly from developing countries seeking to industrialize, many important questions loom. What are the environmental and economic risks of continued petroleum production? How does the flow of oil across national boundaries affect international relations and national security? How is our petroleum consumption contributing to global warming? If we reduce our oil consumption, how will we accomplish this: conservation (consuming less), substitution (using different fuels), or improved technologies (increasing efficiency)? Solutions require informed policy-makers, researchers, educators, and communities-at-large.

EarthTrends seeks to frame these issues by offering a number of important indicators and analyses related to global energy. Examine our new data table of fossil fuel reserves, production, and trade, or explore numerous other statistics in the Energy and Resources section of our website for more information.

In addition to providing information on EarthTrends, The World Resources Institute is promoting sustainable urban transport solutions for developing cities through EMBARQ, and our climate program supports the achievement of international agreements to protect the global climate and engages business to reduce greenhouse gas emissions in the United States. To aid in your continued research, we have also included some links below to external sites of interest:

* BP Statistical Review of World Energy - A comprehensive assessment by BP plc of the world's energy including information on oil, coal, natural gas, and renewables.
* The United States Energy Information Administration (EIA) - Data, forecasts, and analyses regarding energy and its interaction with the economy and the environment.
* The International Energy Agency (IEA) - The IEA presents data and analyses on energy from all sources for every country of the world.