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The petroleum industry is involved in the global processes of exploration, extraction, refining, transporting (often with oil tankers and pipelines), and marketing petroleum products. Hydrocarbon exploration (or oil and gas exploration) is the search by petroleum Geologists for Hydrocarbon deposits beneath the Earth's surface The extraction of petroleum is the process by which usable Petroleum is extracted and removed from the earth An oil refinery is an industrial Process plant where Crude oil is processed and refined into more useful Petroleum products, such as Gasoline History The technology of oil transportation has evolved alongside the oil industry Pipeline transport is the transportation of goods through a pipe. Petroleum ( L petroleum, from Greek πετρέλαιον, lit The largest volume products of the industry are fuel oil and gasoline (petrol). Fuel oil is a fraction obtained from Petroleum Distillation, either as a distillate or a residue Petroleum is also the raw material for many chemical products, including pharmaceuticals, solvents, fertilizers, pesticides, and plastics. Petrochemicals are chemical products made from raw materials of Petroleum or other Hydrocarbon origin The industry is usually divided into three major components: upstream, midstream and downstream. See also Extraction of petroleum The Petroleum industry is usually divided into three major components Upstream Midstream and downstream. The Petroleum industry is usually divided into three major components upstream, midstream and downstream. The petroleum industry is usually divided into three major components Upstream, Midstream and downstream Midstream operations are usually included in the downstream category.

Petroleum is vital to many industries, and is of importance to the maintenance of industrialized civilization itself, and thus is critical concern to many nations. For other uses of this term see Industry (disambiguation An industry (from Latin industrius, "diligent industrious" A Civilization is a society in which large numbers of people share a variety of common elements Oil accounts for a large percentage of the world’s energy consumption, ranging from a low of 32% for Europe and Asia, up to a high of 53% for the Middle East. The Middle East is a Subcontinent with no clear boundaries often used as a synonym to Near East, in opposition to Far East. Other geographic regions’ consumption patterns are as follows: South and Central America (44%), Africa (41%), and North America (40%). The world at large consumes 30 billion barrels (4. 8 km³) of oil per year, and the top oil consumers largely consist of developed nations. In fact, 24% of the oil consumed in 2004 went to the United States alone. The United States of America —commonly referred to as the [1] The production, distribution, refining, and retailing of petroleum taken as a whole represent the single largest industry in terms of dollar value on earth.

Contents

History

Natural history

Petroleum is a naturally occurring liquid found in rock formations. It consists of a complex mixture of hydrocarbons of various molecular weights, plus other organic compounds. It is generally accepted that oil, like other fossil fuels, formed from the fossilized remains of dead plants and animals by exposure to heat and pressure in the Earth's crust over hundreds of millions of years. Fossil fuels or mineral fuels are fossil source Fuels that is Hydrocarbons found within the top layer of the Earth’s crust. Over time, the decayed residue was covered by layers of mud and silt, sinking further down into the Earth’s crust and preserved there between hot and pressured layers, gradually transforming into oil reservoirs.

Early history

Oil in general has been used since early human history to keep fires ablaze, and also for warfare. Prehistory See also Prehistory Paleolithic See also Paleolithic, Recent African Origin, Early Homo sapiens War is an international relations Dispute, characterized by organized Violence between National Military units Its importance in the world economy evolved slowly, with Wood and coal used for heating and cooking, and whale oil used for lighting well into the 19th Century. The world economy can be evaluated in various ways depending on the model used and this valuation can then be represented in various ways (for example in 2006 US dollars) Wood is hard fibrous lignified structural tissue produced as secondary Xylem in the stems of Woody plants notably trees but also shrubs Cooking is the process of preparing Food by applying Heat, selecting measuring and combining of ingredients in an ordered procedure for producing safe and edible Whale oil is the oil obtained from the Blubber of various species of Whales particularly the three species of Right Whale ( Eubalaena japonica Lighting includes both artificial Light sources such as lamps and natural illumination of interiors from Daylight.

An early petroleum industry was established in the 8th century, when the streets of Baghdad were paved with tar, derived from petroleum through destructive distillation. A street is a Public thoroughfare in the built environment It is a Public parcel of land adjoining Buildings in an urban context Baghdad (بغداد) is the Capital of Iraq and of Baghdad Governorate, with which it is also coterminous Tar is a viscous black Liquid derived from the Destructive distillation of organic matter Petroleum ( L petroleum, from Greek πετρέλαιον, lit Destructive distillation is the process of Pyrolysis conducted in a distillation apparatus ( Retort) to allow the volatile products to be collected In the 9th century, oil fields were exploited in the area around modern Baku, Azerbaijan, to produce naphtha. An oil field is a region with an abundance of Oil wells extracting Petroleum (crude oil from below ground Baku (Bakı sometimes known as Baqy, Baky, Baki or Bakü, is the capital the largest city and the largest port of Azerbaijan Azerbaijan ( English; Azərbaycan officially the Republic of Azerbaijan (Azərbaycan Respublikası is the largest and most populous country in the South Naphtha normally refers to a number of different flammable liquid mixtures of hydrocarbons i These fields were described by al-Masudi in the 10th century, and by Marco Polo in the 13th century, who described the output of those oil wells as hundreds of shiploads. TemplateInfobox Muslim scholars --> Abu al-Hasan Ali ibn al-Husayn íbn Ali al-Mas'udi (transl) (born c Marco Polo ( September 15 1254 – January 9 1324 at earliest but no later than June 1325 was a Venetian trader and explorer West Texas PumpjackJPG|thumb|right|300px|This Pumpjack located south of Midland TX is a common sight in West Texas. [2] Petroleum was distilled by al-Razi in the 9th century, producing chemicals such as kerosene in the alembic, which he used to invent kerosene lamps for use in the oil lamp industry. Distillation is a method of separating Mixtures based on differences in their volatilities in a boiling liquid mixture Kerosene, sometimes spelled kerosine in scientific and industrial usage is a Combustible Hydrocarbon liquid An alembic (from Arabic Al-inbiq الأنبيق is an alchemical Still consisting of two Retorts connected by a tube The kerosene lamp (widely known in Britain as a paraffin lamp) is any type of lighting device which uses Kerosene (paraffin as a fuel An oil lamp is a simple vessel used to produce light continuously for a period of time from a fuel source [3]

The Industrial Revolution generated an increasing need for energy which was fuelled mainly by coal. The Industrial Revolution was a period in the late 18th and early 19th centuries when major changes in agriculture manufacturing and transportation had a profound effect on the However, it was discovered that kerosene could be extracted from crude oil and used as a light and heating fuel. Petroleum ( L petroleum, from Greek πετρέλαιον, lit Petroleum was in great demand, and by the twentieth century had become the most valuable commodity traded on the world market. [4]

Modern history

See also: Baku oil boom
Galician oil wells
Galician oil wells

Imperial Russia produced 3,500 tons of oil in 1825 and doubled its output by the mid-century. Azerbaijan produces about 800000 barrels of oil per day and 1 bcma of gas — a production that will grow to historical peak of 1 The Russian Empire ( Pre-reform Russian: Pоссійская Имперія Modern Russian: Российская Империя translit: Rossiyskaya [5] After the oil drilling began in what is now Azerbaijan in 1848, two large pipelines were built in the Russian Empire: the 833 km long pipeline to transport oil from the Caspian to the Black Sea port of Batumi and the 162 km long pipeline to carry oil from Chechnya to the Caspian. Azerbaijan ( English; Azərbaycan officially the Republic of Azerbaijan (Azərbaycan Respublikası is the largest and most populous country in the South The Russian Empire ( Pre-reform Russian: Pоссійская Имперія Modern Russian: Российская Империя translit: Rossiyskaya The Black Sea is an inland Sea bounded by southeastern Europe, the Caucasus and the Anatolian peninsula ( Turkey Batumi (ბათუმი formerly Batum or Batoum) is a seaside city on the Black Sea coast and Capital of Adjara, an Autonomous The Chechen Republic (ˈʧɛʧɨn rɪˈpʌblɨk Чече́нская Респу́блика Chechenskaya Respublika; Нохчийн Республика Noxçiyn Respublika

At the turn of the 20th century, Imperial Russia's output of oil, almost entirely from the Apsheron Peninsula, accounted for half of the world's production and dominated international markets. This article is about the peninsula For the rayon of Azerbaijan see Absheron (Rayon. [6] Nearly 200 small refineries operated in the suburbs of Baku by 1884. [7] As a side effect of these early developments, the Apsheron Peninsula emerged as the world's "oldest legacy of oil pollution and environmental negligence"[8] In 1878 Ludvig Nobel and his Branobel company "revolutionized oil transport" by commissioning the first oil tanker and launching it on the Caspian Sea. Ludvig Nobel (1831-1888 was an engineering genius a noted businessman and a humanitarian Branobel (short for Brothers Nobel) was the Oil company set up by Ludvig and Robert Nobel in Baku, Azerbaijan. History The technology of oil transportation has evolved alongside the oil industry The Caspian Sea is the largest enclosed body of water on Earth by area variously classed as the world's largest lake or a full-fledged Sea. [6]

The first modern oil refineries were set up by Ignacy Łukasiewicz near Jasło, Poland in the years 1854-56. Jan Józef Ignacy Łukasiewicz (1822 - 1882 was a Polish Pharmacist of Armenian descent who devised the first method of distilling Kerosene Jasło (Jassel Jessel 1325) is a County town in south-eastern Poland with 38104 inhabitants . [9] They were initially small as there was limited demand for refined fuel. They produced oil for artificial asphalt, machine oil and lubricants, in addition to Łukasiewicz's kerosene lamp. As kerosene lamps gained popularity, the refining industry grew in the area. The first large oil refinery opened at Ploieşti, Romania in 1856. Ploieşti (ploˈjeʃtʲ older spelling Ploeşti) is the county seat of Prahova County and lies in the historical region of Wallachia, Romania The first oil drilling in the United States began in 1859, when oil was successfully drilled in Titusville, Pennsylvania. Titusville is a city in Crawford County, Pennsylvania, United States. In the first quarter of the 20th century the United States overtook Russia as the world's largest oil producer. By the 1920s, oil fields had been established in many countries including Canada, Poland, Sweden, the Ukraine, the United States, and Venezuela.

In 1938, the Superior Oil company constructed the first offshore oil platform off the Gulf Coast of Louisiana. An oil platform or oil rig is a large structure used to house workers and machinery needed to drill and/or extract oil and Natural gas through wells

Corporations

During the 1960s, multinationals such as Mobil, BP, and Shell had access to more than 80 percent of global oil and natural gas reserves. Western multinationals control just 10 percent of the world's oil, while state-run firms exercise exclusive control over roughly 77 percent, according to a November 2007 paper from Rice University's James Baker Institute. The James A Baker III Institute for Public Policy, often shortened to "Baker Institute" is a Think tank on the campus of Rice University in Houston [10]

Industry Structure

The American Petroleum Institute divides the petroleum industry into five sectors:

Oil companies can also be categorized as "Supermajors" (BP, Chevron, ExxonMobil, ConocoPhillips, Shell and Total S.A.), "majors," and "independents" or "jobbers. These are lists of petroleum companies. List of companies by size of oil reserves A list of the largest petroleum companies is always somewhat arbitrary as state-owned companies The term supermajor illustrates the six largest non state-owned energy companies as seen in popular financial mediums around the world BP plc, previously known as British Petroleum, is the third largest global Energy company, a multinational oil company (" Oil major The Exxon Mobil Corporation, or ExxonMobil, is an American oil and gas Corporation and a direct descendant of John D ConocoPhillips Company ( is an international energy corporation with its headquarters located in Houston Texas. Royal Dutch Shell plc, commonly known simply as Shell, is a multinational oil company of Dutch and British origins Total SA () is an oil company headquartered in Paris, France, and one of the six " Supermajor " oil companies in the world " Most upstream work in the oil field or on an oil well is contracted out to drilling contractors and oil field service companies. An oil field is a region with an abundance of Oil wells extracting Petroleum (crude oil from below ground West Texas PumpjackJPG|thumb|right|300px|This Pumpjack located south of Midland TX is a common sight in West Texas. A contract is an exchange of promises between two or more parties to do or refrain from doing an act which is enforceable in a court of law

Environmental impact and future shortages

Some Petroleum industry operations have been responsible for water pollution, through byproducts of refining, and oil spills. Water pollution is the contamination of Water bodies such as Lakes Rivers Oceans and Groundwater caused by human activities For the fictional character see Oil Slick (Transformers. An oil spill is the release of a Liquid Petroleum Hydrocarbon into

The combustion of fossil fuels produces greenhouse gases and other air pollutants as byproducts. Greenhouse gases are gaseous constituents of the atmosphere bothnatural and anthropogenic that absorb and emit radiation at specific wavelengths within the spectrum of thermal infrared Pollutants include nitrogen oxides, sulfur dioxide, volatile organic compounds and heavy metals. The term nitrogen oxide typically refers to any Binary compound of Oxygen and Nitrogen, or to a mixture of such compounds Nitric This article describes a highly specialized aspect of its subject in the "Terminology and legal definitions" section

As petroleum is a non-renewable natural resource the industry is faced with an inevitable eventual depletion of the world's oil supply. Natural resources are naturally occurring substances that are considered valuable in their relatively unmodified ( natural) form The BP Statistical Review of World Energy 2007 predicted the reserve/production ratio for proven resources worldwide. The study placed the prospective life span of reserves in the Middle East at 79. 5 years, Latin America at 41. 2 years and North America at only 12 years. The global reserve/production ratio estimates that at current production levels, the world's oil reserves will be depleted in 40. 5 years. [12]

The Hubbert peak theory, also known as peak oil, is an influential theory concerning the long-term rate of conventional oil production and depletion.

According to research by IBISWorld, Biofuels (primarily ethanol, but also biodiesel) will continue to supplement petroleum, however output levels are low and these fuels will not displace local oil production. Ethanol is viewed as offering a lower environmental impact, and will play a small role in reducing dependence on imported crude oil. Most of the ethanol used in the US (over 90%) is blended with gasoline to produce fuel containing 10% ethanol in order to lift the oxygen content of the fuel. [13]

See also

References

  1. ^ "International Energy Annual 2004". The hypothesis of abiogenic petroleum origin is an alternative hypothesis to the biological origin theory which was popular in Russia and Ukraine between Berito Kuwaru'wa is a member of the Colombian U'wa people. He was awarded the Goldman Environmental Prize in 1998 for his role as spokesperson in conflicts Basic Overview The 1970s See 1970-1979 world oil market chronology 1970 January 1: U An energy crisis is any great bottleneck (or price Rise) in the supply of energy resources to an economy. The 1973 oil crisis began on October 17 1973 when the members of Organization of Arab Petroleum Exporting Countries (OAPEC consisting of the Arab members of The 1979 (or second) oil crisis in the United States occurred in the wake of the Iranian Revolution. Energy development is the ongoing effort to provide sufficient Primary energy sources and secondary Energy forms to meet civilization's needs Fossil fuels or mineral fuels are fossil source Fuels that is Hydrocarbons found within the top layer of the Earth’s crust. Greenhouse gases are gaseous constituents of the atmosphere bothnatural and anthropogenic that absorb and emit radiation at specific wavelengths within the spectrum of thermal infrared The Canadian petroleum industry arose in parallel with that of the United States. This list of Oil fields includes some of Major oil fields of the past and present This is a list of Countries and their states/provinces that extract Crude oil from Oil wells Africa Algeria ( These are lists of petroleum companies. List of companies by size of oil reserves A list of the largest petroleum companies is always somewhat arbitrary as state-owned companies An oil depot (sometimes called a tank farm, installation or oil terminal) is an industrial facility for the storage of oil and/or Petrochemical Oil imperialism theories are theories which claim that direct and indirect control of world Petroleum reserves is a root factor in current international politics Azerbaijan produces about 800000 barrels of oil per day and 1 bcma of gas — a production that will grow to historical peak of 1 Petroleum production is a major industry in Canada. In 2005 almost 25000 new Oil wells were spud (drilled in Canada Alberta (ælˈbɝtə is one of Canada's prairie provinces. It became a province on September 1 1905 Country to "Dominion of Canada" or "Canadian Federation" or anything else please read the Talk Page ifexist count 0/2000 --> An oil refinery is an industrial Process plant where Crude oil is processed and refined into more useful Petroleum products, such as Gasoline Oil reserves are the estimated quantities of Crude oil that are claimed to be recoverable under existing Economic and operating conditions West Texas PumpjackJPG|thumb|right|300px|This Pumpjack located south of Midland TX is a common sight in West Texas. The Olduvai theory states that industrial civilization (as defined by per capita energy consumption will have a lifetime of less than or equal to 100 years (1930-2030 The Organization of the Petroleum Exporting Countries ( OPEC) is a Cartel of thirteen countries made up of Algeria, Angola, Ecuador Petrobras ( Bovespa: PETR3 / PETR4 ( NYSE: PBR / PBRA( Latibex: XPBR / XPBRA short for Petróleo Brasileiro S Petróleos de Venezuela SA ( PDVSA) is the Venezuelan state-owned Petroleum company For the fictional character see Oil Slick (Transformers. An oil spill is the release of a Liquid Petroleum Hydrocarbon into Renewable energy is Energy generated from Natural resources mdashsuch as Sunlight, Wind, Rain, tides and geothermal Thermal depolymerization ( TDP) is a process using Hydrous pyrolysis for the reduction of complex Organic materials (usually Waste products of Energy Information Administration. 14 Jul. 2006. Found at http://www.eia.doe.gov/pub/international/iealf/tablee2.xls
  2. ^ K. Ajram (1992). Miracle of Islamic Science, Appendix B. Knowledge House Publishers. ISBN 0911119434.
  3. ^ Zayn Bilkadi (University of California, Berkeley), "The Oil Weapons", Saudi Aramco World, January-February 1995, p. The University of California Berkeley (also referred to as Cal, Berkeley and UC Berkeley) is a major research university located in Berkeley Saudi Aramco World is a bi-monthly magazine published by Saudi Aramco, the national oil company of Saudi Arabia. 20-27.
  4. ^ Halliday, Fred. The Middle East in International Relations: Power, Politics and Ideology. Cambridge University Pres: USA, 270
  5. ^ N. Y. Krylov, A. A. Bokserman, E. R. Stavrovsky. The Oil Industry of the Former Soviet Union. CRC Press, 1998. Page 187.
  6. ^ a b Shirin Akiner, Anne Aldis. The Caspian: Politics, Energy and Security. Routledge, 2004. Page 5.
  7. ^ United States Congress, Joint Economic Committee. The Former Soviet Union in Transition. M. E. Sharpe, 1993. Page 463.
  8. ^ Quoted from: Tatyana Saiko. Environmental Crises. Pearson Education, 2000. Page 223.
  9. ^ Frank, Alison Fleig (2005). Oil Empire: Visions of Prosperity in Austrian Galicia (Harvard Historical Studies). Harvard University Press. ISBN 0-674-01887-7.  
  10. ^ Put a Tyrant in Your Tank
  11. ^ American Petroleum Institute. "Industry Sectors. " http://www.api.org/aboutoilgas/sectors/ Retrieved 12 May 2008
  12. ^ BP Global. "Reports and Publications: Oil Reserves. " http://www.bp.com/sectiongenericarticle.do?categoryId=9017902&contentId=7033474 Retrieved 26 Feb 2008
  13. ^ IBISWorld. "US Oil Drilling Industry Market Research Report. " http://www.ibisworld.com/industry/retail.aspx?indid=103&chid=10 Retrieved 14 May 2008

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