The Oceans and Natural

Resources
Oil, Natural Gas and Minerals

Outline of Todays Lecture

Oil
Its in the ocean
Its transported by
sea

Natural Gas
Its in the ocean
Its transported by
sea

Minerals
Theyre in the
oceans.
But not yet
economically viable

Putting People Back

In: Why Does This
Matter to You?

Why Oil and Natural Gas?

Most of the worlds new discoveries are
in the ocean; eg:
The Arctic
Gulf of Guinea
East coast of Africa

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Oil and Natural Gas: Some

Questions
Who needs it?
Where is it? (Place)
How do I get it? (Place and Space)

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Quick Note
OECD refers to the Organization for
Economic Cooperation and
Development
Shorthand for rich countries
Currently 34 nations
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OECD Countries
Australia

Austria

Belgium

Canada

Chile

Czech
Republic

Denmark

Estonia

Finland

France

Germany

Greece

Hungary

Iceland

Ireland

Israel

Italy

Japan

Korea

Luxembourg

Mexico

Netherlands

New Zealand Norway

Poland

Portugal

Slovak
Republic

Slovenia

Spain

Sweden

Switzerland

Turkey

United
Kingdom

United States

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World Energy Demand

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Oil Consumption

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Top 10 Oil Exporters

1.
2.
3.
4.
5.

Saudi Arabia
Russia
Iran
United Arab Emirates
Norway

6. Iraq
7. Kuwait
8. Nigeria
9. Canada
10.United States

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Source: CIA World Factbook

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Top 10 Oil Importers

1.
2.
3.
4.
5.

United States
China
Japan
India
Germany

6. Netherlands
7. South Korea
8. France
9. Singapore
10.Italy

Source: CIA World Factbook

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Main Oil Suppliers to the

United States: 2013

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Oil Transportation and

Chokepoints

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NATURAL GAS
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Natural Gas
Consumption expected to increase 70% from
2001 to 2025
Industrialized nations will rely on imports for
30% of their needs by 2025
Much of the increment in international trade is
expected to be in the form of LNG
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Global Natural Gas

Production
Note:
Dominance of
Middle East
Asia
Africa
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The Arctic Sea

Believed to contain one
quarter of the worlds
oil and natural gas
reserves (mostly gas)
Conflicts between
Canada, the US,
Norway, Denmark,
Russia

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Increased global
demand
Developing world:
Demand will double
from 2001 to 2025
(2.9%/year)
Increase 1.8%/year
in developed world

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Transporting Natural
Gas
Becomes liquid when cooled to -162C (-259F)
and shrinks to less than 1/600th of original
volume
Transported by special tankers
Returned to gaseous state at terminals and fed
into pipelines
Cannot burn or explode in liquid state
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LNG Tanker

Can be up to 1,000 ft long

Capacity of 125,000 to 138,000 cubic meters of fuel.

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Fleet Expansion
Worldwide fleet expanding 30%
Current global fleet: 151 vessels
55 ships under construction

2-8 LNG tankers could arrive and depart

along Baja and California coasts each week

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LNG Fleet by Flag

Japan: 15.9%
Panama: 10.8%
Malaysia: 10.2%
Liberia: 9.7%
Bermuda: 7.4%
N.I.S*: 5.7%

Brunei: 4.6%
Marshall I*: 4.6%
Singapore: 4.0%
Algeria, Bahamas,
UK: 3.4% each

* US reflags
Source: Maritime Business Strategies, LLC
www.coltoncompany.com
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LNG Shipyards
Currently only 8
actively building
LNG carriers:
Japan (3)
Korea (3)
Europe (2)

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Plans to adapt
existing yards for
LNG construction:
India
China
Poland

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US LNG Terminals

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Current Terminals

Boston, MA
Cove Point, MD
Elba Island, GA
Lake Charles, LA

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Oil and Natural Gas: Putting it

all in context
One-quarter to one-third of oil and gas reserves are
offshore mostly on the continental shelf
Some significant reserves are in areas of contested
EEZs
Oil and natural gas issues are increasingly maritime
issues Much of the transport is through
chokepoints with significant security concerns

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OCEAN MINERALS
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Historical views of the deep

seabed
Life could not exist under great
pressures, without light
As late as 1817 some scientists believed
the seabed was covered with ice
This changed with the Challenger
expedition

Challenger: 1872-1876
Goals
Determine the chemical composition of
seawater
Ascertain the physical and chemical
deposits on the sea bottom
Examine the distribution of organic life

The Voyage
69,000 miles
Four naturalists, one chemist:
13,000 species of plants and
animals (4,000 of which were
previously undiscovered);
1,441 water samples;
hundreds of sea-floor
sediment samples
50 volumes of expedition
reports

The discovery of minerals in

the deep seabed
18 February 1873 at 2545N, 2014W:
A dredge to 1,525 fathoms (~2.8km) picked
up some corals with black crust
Pure oxide of manganese

Seabed samples repeated around the

world
Significant find south of Australia at a depth
of 5km

More recently
Manganese is essential to iron and steel
production; non-magnetic is also important to
shipbuilding and aerospace
1957: Scripps and UC Berkeley focus on the
study of deep sea manganese nodules
1965: The mineral resources of the sea
concludes it would be economically feasible to
mine the nodules

Important point
A great deal of the manganese deposits are
found in the deep seas
Beyond the territorial limits of any nation

1968 UN General Assembly establishes the

Committee on the Peaceful Uses of the Seabed
and the Ocean Floor Beyond the Limits of
National Jurisdiction
Deep seas established as the common heritage of
mankind

Minerals and UNCLOS III: The

1970 Declaration of Principles
The seabed and ocean floor, and the subsoil
thereof, beyond the limits of national
jurisdictionas well as the resources of the
sea are the common heritage of mankind,
to be reserved for peaceful purposes, not
subject to national appropriation and not to be
explored or exploited, except in accordance
with an international regime to be
established

US objections
The detailed procedures for production
authorization from the International
Seabed Authority
The complex financial rules of contracts
The decision-making process in the
Council of the Seabed Authority
Mandatory transfer of technology

1994 renegotiation
Production limitations on mining were removed
Annual fee mining companies had to pay even for
exploration was removed
US given a seat on the Seabed Council
Technology transfer provisions removed or made
acceptable to the US
Still not enough for some US Senators the treaty still
has not been ratified by the United States

Where we stand now

Only just beginning to be
commercially viable (eg:
Nautilus Minerals)
Exploration continues
especially in deep sea
chimneys (first discovered
in 1977)
Galapagos chimneys: Copper
deposits worth an estimated $2
billion

What minerals are we talking

about?

Nickel
Copper
Wolfram
Coal
Iron
Lead
Zinc

Sulphides
Gold
Diamonds
Silver
Manganese
Chromium
Titanium

Environmental concerns about

deep seabed exploration
Loss of biodiversity
Unintended pollution/ecological
consequences
Loss of potentially economically
valuable knowledge
Microbes hazardous waste removal

Deep Sea Vent Creatures

Tubeworms, mussels, crabs,
squat lobsters, limpets,
alvinella worms, scaleworms,
zoarcid fish, and octopus.
Given the absence of sunlight,
no plants are found here.
Microbes form the base of the
food chain. They are
chemosynthetic, using energy
from hydrogen sulfide in the
vent fluid, and oxygen and
carbon dioxide from the
seawater, to create simple
sugars.

Anenome,
clams, tube
worms

The Pompeii Worm

The most heat-tolerant

animal on Earth

Can survive an environment

as hot as 80C (176F)

Formerly, the Sahara desert

ant was believed to be the
most heat-hardy creature,
foraging briefly in the desert
sun at temperatures up to
55C (131F).

Conclusion
Oil and natural gas are ocean issues
Found in the oceans (nearly all new discoveries are at sea)
Transported by sea

Mineral extraction from the seabed will be an

increasingly important issue for the future
Tying it all together: Note security and environmental
concerns
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