OIL AND GAS - ENERGY FOR THE WORLD

Nearly two-thirds of the world's energy consumption comes from oil and natural gas. Also, these are the starting materials for some 30,000 different chemicals. Without oil and gas the world's industrialised economies would grind to a halt. The oil business is not just an industry like any other. It is the subject of global political wrangling - in times of war and peace.

The power of the Middle East
OPEC (the Organisation of Petroleum Exporting Countries) was established in 1960 to co-ordinate prices and supply policies of the major oil-producing states. Its members are Algeria, Gabon, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela.

Oil and war
There have been many instances of countries going to war to secure supplies of oil. For example, during World War II, Germany's ultimately disastrous invasion of Russia was prompted by a desire to acquire the oilfields of the Caucasus, and Japan's attack on Pearl Harbour was partly as a result of an American oil embargo.

More recently the Arab-Israeli War of 1973-4 caused grave concern about oil supplies in the UK to the extent that petrol rationing coupons were issued and the price of petrol doubled almost overnight.

Even more recently, there was the Gulf War of 1991. Many believe that the United States and its allies would not have ousted the Iraqi invaders from Kuwait but for the fact that Kuwait has the fourth largest proved reserves of oil in the world and was one of the world's largest producers of oil.

Thousand million barrels (at end of 1995) OPEC (black) Non OPEC (white) 1. Iran 88.2 (8.7%) 7. USA 29.6 (2.9%) 2. Iraq 100.0 (9.8%) 8. Former Soviet Union 57.0 (5.5%) 3. Kuwait 96.5 (9.5%) 9. UK 4.3 (0.4%) 4. Saudi Arabia 261.2 (25.7%) 10. Other non-OPEC 147.8 (14.6%) 5. UAE 98.1 (9.7%) 6.Other OPEC 134.2 (13.2%)

Thousand US barrels daily (1995) OPEC (black) Non OPEC (white) 1. Approx 5,500 (8%) 2. USA 16,935 (25%) 3. Former Soviet Union 4,310 (6.7%) 4. UK 1,750 (2.5%) 5. Other non-OPEC approx 39,435 (58%)

The politics of the environment
At times of relative world peace, political discussions and debate about oil tend to centre around environmental concerns and even human rights (how far are we supporting undemocratic regimes, by buying oil from the countries that they control?). These are issues for which we as consumers must increasingly take responsibility. We have to seek out facts rather than reacting emotionally to rumour and propaganda.

The recent example of the disposal of the Brent Spar storage and loading buoy showed that some of the information given out by environmental pressure groups was, in fact, inaccurate.