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Proven reserves are the
estimated amount of oil recoverable from known reservoirs under current
economic and operating conditions. The Persian Gulf states possess
about 726.6 billion barrels of proven reserves, or over 60 percent of
the world's total. To put this in perspective, all the proven reserves
in the entire remaining global surface equal just over half of the
reserves of the Gulf region. Saudi Arabia alone -- at one-fifth the
land area of the United States and with less than one-half of one
percent of the world's population possesses about 25% of the world's
proven supply.
Adding to the Persian Gulf's significance is the
fact that the surrounding nations produce almost a hundred percent of
the world's "excess oil" -- the oil produced beyond the daily purchase
and export demand. Excess oil is important in that it can cushion the
effects of temporary disruptions in global supply. This is particularly
important when major oil producers are forced to shut down, as has
happened recently due to strikes in Venezuela and the war in Iraq. In
these conditions, excess oil can act to buffer the price impacts and
help to allay concerns about energy security.
In recent decades,
as new oil supply has lagged somewhat behind growing demand, the
supply/demand balance worldwide has become closer -- that is, oil markets
have become "tighter" with less "slack" in the system. In these market
conditions, prices can respond dramatically, even excessively, to
temporary disruptions or threats of disruptions in production.
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Who's Who - Read about the
ten most influential members of the House of Saud.
Photo Essay - Take a look at
the faces and places of Saudi Arabia
Info-Graphic -
Examine the numbers of Muslims in the World and in the West.
Debate: Islam and
Democracy Two scholars, Dr. Daniel Pipes and Dr. Muqtedar Khan
discuss the compatibility of Islam and democracy.
Interactive Map: Middle
East- Learn more about the politics, population and history of
Middle East countries.
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