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Oil and gas production handbook An introduction to oil ... - ABB Group

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9 Unconventional <strong>and</strong> conventional<br />

resources <strong>and</strong> environmental effects<br />

About 81.1% of the world’s primary energy consumption in 2012 was fossil<br />

fuels; 27.3% was coal, <strong>oil</strong> <strong>production</strong> was 32.4% or about 4.01 billion <strong>to</strong>ns,<br />

<strong>and</strong> 21.4% was <strong>gas</strong>, with 3,39 trillion scm or 3.01 billion <strong>to</strong>ns <strong>oil</strong> equivalent<br />

(TOE). Thus, <strong>to</strong>tal <strong>oil</strong> <strong>and</strong> <strong>gas</strong> <strong>production</strong> was 6.4 billion TOE, which is about<br />

128.5 million barrels of <strong>oil</strong> equivalent per day (IEA 2012).<br />

Proven reserves are estimated at 201 billion TOE of <strong>oil</strong> <strong>and</strong> 6707 tcf of <strong>gas</strong><br />

(180 trillion scm, 160 billion TOE) for a <strong>to</strong>tal of 361 billion TOE (converted<br />

from estimates by US Department of Energy, 2012), indicating that proven<br />

reserves will last for about 56 years.<br />

9.1 Unconventional sources of <strong>oil</strong> <strong>and</strong> <strong>gas</strong><br />

The reservoirs described earlier are called conventional sources of <strong>oil</strong> <strong>and</strong><br />

<strong>gas</strong>. As dem<strong>and</strong> increases, prices soar <strong>and</strong> new conventional resources<br />

become economically viable. At the same time, <strong>production</strong> of <strong>oil</strong> <strong>and</strong> <strong>gas</strong><br />

from unconventional sources becomes more attractive. These<br />

unconventional sources include very heavy crudes, <strong>oil</strong> s<strong>and</strong>s, <strong>oil</strong> shale, <strong>gas</strong><br />

<strong>and</strong> synthetic crude from coal, coal bed methane, methane hydrates <strong>and</strong><br />

biofuels. At the same time, improved <strong>oil</strong> recovery (IOR) can improve the<br />

percentage of the existing reservoirs that can be economically extracted.<br />

These effects are illustrated in principle in the following figure.<br />

127

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