Reality Math Dot Sulock, University of North Carolina at Asheville

Transcription

1 Reality Math Dot Sulock, University of North Carolina at Asheville World Oil II 1. US Oil Imports At the time of this graph, the US imported about 60% of its oil. Where we import this oil from is shown on the stacked line graph below. Be careful how you read the stacked line graph. We import very little oil from Russia. The width of the orange area representing imported oil from Russia shows in 2009 we were importing about ½ mbpd from Russia. 1. (a) What nation was our number one oil supplier in 2009? (b) About how much oil did our biggest supplier provide each day? (c) Which three nations were essentially tied for second, third, and fourth suppliers? (d) About how much oil did each supply each day? (e) How much oil in total were we importing at the end of this graph? 2. Go to OIL- PRICE.NET price.net/ (a) What is the price of WTI crude oil per barrel today? 1

2 (b) Give the increase or decrease from yesterday s price and specify which it is (change in red is a decrease and change in green is an increase) (c) What was yesterday s price? (d) According to the website, by what percent did the price increase or decrease since yesterday? (e) Check the website percentage increase or decrease in price. (f) What is the 1 year forecasted price of oil? (g) The one- year forecast price is what percent higher or lower than today s price? 3. Click on 1y on the bottom of the WTI Crude Oil graph on OIL- PRICE.NET. (a) What was the highest price of oil in the last year? (b) Click on 5y on the bottom of the WTI Crude Oil graph. What was the highest price of oil in the last 5 years? 4. Estimate how much oil the US imports each day from the US Net Petroleum Imports graph and use today s price per barrel: (a) About how much money in total is being sent out of the US to pay for our imported oil each day? (b) Approximate the annual cost of imported oil for the US. (c) What is the annual per capita cost of imported oil for the US? 2. World Proven Oil Reserves (2008) The table on the next page is very interesting. Reserves is oil in the ground bbl, first column under Reserves, is billion barrels. Production is the daily output of drilling bbl/d is million barrels per day, mbpd. So, from the table on the next page, Saudi Arabia has 267 x 10 9 = 267,000,000,000 = 267 billion barrels of oil in the ground. Saudi Arabia is extracting the oil at a production rate of 10.2 x 10 6 = 10,200,000 = 10.2 million barrels/day = 10.2 mbpd. At that production rate, their oil will last 267,000,000,000/10.2 million = 267,000/10.2 = 26,180 days = 26,180/365 = 72 years which is their reserve life 2

3 Summary of Reserve Data as of 2008 Country 10 9 bbl Reserves [16] Production [17] Reserve life m 3 bbl/d m 3 /d years Saudi Arabia , Canada Iran Iraq Kuwait United Arab Emirates Venezuela Russia , Libya Nigeria Kazakhstan United States ,190 8 China Qatar Algeria Brazil Mexico Total of top seventeen reserves 1, , Notes: 1 Reserve to Production ratio (in years), calculated as reserves / annual production. (from above) 3

4 5. Show how the US reserve life of 8 years was calculated. 6. Go to How many million barrels per day of oil did the US consume in (a) 2008? (b) 2012? (c) The daily oil consumption of the US in 2010 was what percent less than the daily oil consumption of the US in 2006? How many mbpd of oil did the world consume in (d) 2008? (e) 2010? The US consumed what percent of world oil in (f) 2008? (g) 2010? (h) Annual world oil consumption increased by what percent from 2006 to 2010? 7. (a) The US has about what percent of the world population? (b) The US uses about what percent of world oil? 8. (a) If the US used only its own oil at the 2010 rate and imported no oil, how many years would US reserves last? (b) The US imported 10 mbpd of oil in 2010, so how many mbpd of our own oil were we using? (c) If we continue to import 10 mbpd of oil and consume at the 2010 rate, how many years would US oil reserves last? (d) Which of our top 4 oil suppliers (from graph) is going to run out of oil first at current production rates (from table)? 4

5 9. OPEC Share of World Crude Oil Reserves 2011 graph: (a) What is the glaring difference in national reserves between this graph and the Wikipedia table above? (b) Which source is more current? (c) According to the OPEC graph, how many barrels of oil are in world oil reserves? (d) At the world oil consumption rate for 2010, 6. (e), how many years would world oil reserves, according to the 2011 graph, last? 10. Reflect. Explain why these numbers matter. 5