The geopolitics of oil and gas....and that V........... country

This episode looks at the geography and geopolitics of oil and gas - its distribution, its production and consumption. Energy, and particularly oil and gas, are crucial to making the modern world go round and they have been for well over 100 years. Big US oil companies emerged in the 1920s and BP became a major player in Persia (now Iran). Together they account for just over half of world energy use. But the distribution of oil and gas resources is very uneven, as is production and consumption. The USA account for 20% of global oil consumption, followed by China at 15% and then a long tail of other countries with 5% and under. But in terms of production the US accounts for 22%, followed by Saudi Arabia 11% and Russia at 11%. So, the US is roughly in balance in production and consumption but this is relatively new, after the discovery of shale oil in Texas and elsewhere. No less than 44% of world oil and gas is produced by Saudi Arabia, Iran, Iraq the United Arab Emirates and Kuwait, which is why the Middle East has long been of major geopolitical importance, particularly for the USA. The North Sea oil and gas discoveries have been very important for both Britain and Norway since the 1960s ,although the North Sea fields are now very mature and production has fallen. Energy costs also soared in 2022 after Russia invaded Ukraine and oil and gas exports were embargoed. But one of the most interesting aspects of oil and gas is the geographical distribution of proven resources and the fact that Venezuela has the worlds largest oil resources at 300 billion barrels, followed by Saudi Arabia at 267 billion, Iran at 209, and Iraq at 145 billion. Venezuela used to be a major producer until Chavez and then subsequently Maduro took control and nationalized the oil industry. Oil production then slumped. As you will hear at the end, we recorded the episode the evening of Friday 2nd January and woke on Saturday 3rd to find out that President Trump had mounted a military operation to capture president Maduro and put American oil companies in place. Coincidence or what?