Middle East Oil Production
For this project I have decided to prospect Southwest Asia but in more detail take a look at its natural resources and even ultimately its oil reserves. The middle east is the worldâ€™s juggernaut when talking on terms of oil reserves by producing over fifty percent of the Earthâ€™s oil. This is why so much the world depends on the middle east because of how important oil is to every living human, we almost have a need for it to survive efficiently. The pursuit for oil around the world is more rapid than ever which gives the middle eastern companies great economic ...view middle of the document...
(Reuters, 2014). The oil reserves are operated by the Saudi Arabian Oil company while it is governed by the royal family. The Ghawar field is located between Qatar and Riyadh.
Last but not least out of the big three is the country of Iraq, Iraq contains the third largest oil reserve on the planet which is known as the Rumalia field. The Rumalia field is located 20 miles from Kuwaitâ€™s border. Iraqâ€™s oil fields yield anywhere from 110 billion to 118 billion barrels of oil per year. Iraq has previously up to 80 oil fields in use but as of the present only 16 are currently being used (Raval, 2014). With such an dramatic decrease in production reserves, the countries number of barrel yield per year has dropped considerably.
It has come to be common knowledge that with any country gaining much of their income off of their natural resources it comes with a price. The price is having much of their environment take a harmful downward spiral. Kuwaitâ€™s stabilization of water-in-crude oil emulsions in oil fields are of great concern to the petroleum industry for economic development of underground oil reservoirs (Elsharkway, 2012). The term emulsion means the mixture of at least two liquids which in this industry would be water and crude oil. The environmental issue that comes into play is what is to be done with all of the contaminated water. Kuwait is actively working to try and solve this problem, all of them having to due with no contamination flowing into wildlife and or their population. The best solution that they have come up with is to discharge water produced with oil by using the effluent injection method (El-Dash, 2006). Which ultimately means that the country re-injects the water into reservoirs located beneath the ground and recycles the water.
Kuwait is not the only country having issues, Iraq has its own problems as well.
Iraq is facing the issue of how much of an economic grasp that oil has on its country. Oil wealth in the country was used to keep a dictatorship and its internal security apparatus and fuel the fire for economically disparaging wars with its neighbor nations (Muttitt, 2006). If Iraq wants to turn around their past mistakes there is no better time than now to take advantage of their new government and find ways to benefit the entire nation as a whole. Iraq has been bringing foreign investigators which sanguinely enhances the need for them to produce large amounts of oil and even larger amounts of profit for their people.
Some experts in the energy field are growing more and more concerns do to the fact that they believe when the world runs out of oil resources the world will be even more dependent than they are now causing a global crisis (Johnson, 2010). Also there is a fear of once the oil dries up, nations with the oil export dependency in the...