In this first session, we will discover what we mean by energy and the importance of the energy
sector in the worlds economy. Then we will focus on the dominant resource, oil, and we will finish
with a few words on the different players involved in the oil industry.
What is energy?
Do we have enough oil to cover our needs and for how long ?
This is a key question, not easy to answer. If we divide the reserves discovered by the current level of
production we have today 53 years of consumption ahead of us.
But oil reserves are, above all, a function of the price. As the price of oil rises, more reserves become
economically recoverable. Oil from the Middle-East and North Africa can be produced at the lowest
cost. The other resources are more expensive because of the geology, the technology or the logistics
for example. And as long as our society is ready to invest sufficiently, there is still plenty of oil or
equivalent like GTL (Gas to liquids) or CTL (Coal to liquids).
Oil & Gas sector have doubled in the last decade and they could reach up to 750 billion dollars in
2014.
Moreover, oil is generally not produced where it is consumed. Indeed, Saudi Arabia, Russia and the
United States are the 3 main producers; but only the US is among the top 3 consumers, along with
China and Japan.
Two third of the oil produced is therefore exported.
The main exporting regions are the Middle East, the Former Soviet Union, and West Africa. The main
regions relying on foreign imports for their oil supply are Europe, the United States that is reducing
its imports with the local development of unconventional production and China.
Oil needs to be transported
The map below shows that crude oil is a genuine global commodity. A product so important for the
economy that very few regions are excluded from the international oil market. But definitely,
Middle-East is a key area for consuming countries, especially in Asia.
The players