Transcription of Chapter 8 PETROLEUM
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Chapter 8 PETROLEUM
Chapter 8 PETROLEUMFor the foreseeable future, oil will remain a critical fuel for the United States and all otherindustrialized nations. [In order to make the economy less dependent on oil,] theNational Energy Strategy proposes initiatives to (1) reduce the economic consequences ofdisruptions in world oil markets, and (2) increase domestic oil and PETROLEUM productsupplies.(National Energy Strategy, Executive Summary, 1991/1992)The growing level of oil consumption raises potential economic and national securityconcerns. In addition to emphasizing efficient use of oil products and enhancing fuelflexibility, national energy policy must address declining domestic production levels withminimum interference with market forces.
FIGURE 8-1. World distribution of petroleum resources and reserves. [Source: W. Fulkerson et al., Scientific American, September 1990, p. 129.] Most of the world's petroleum is to be found in the Middle East, as shown in Figure 8-1 and in more detail in Figure 8-2. Figure 8-1 also illustrates the fact that the world reserves
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