International Petroleum Encyclopedia 2010

Petroleum industry
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Oil in general has been used since early human history to keep fires ablaze and in warfare. Its importance to the world economy however, evolved slowly, with whale oil being used for lighting in the 19th century and wood and coal used for heating and cooking well into the 20th century. Even though the Industrial Revolution generated an increasing need for energy, this was initially met mainly by coal, and from other sources including whale oil. However, when it was discovered that kerosene could be extracted from crude oil and used as a lighting and heating fuel, the demand for petroleum increased greatly, and by the early twentieth century had become the most valuable commodity traded on world markets.

Imperial Russia produced 3, tons of oil in and doubled its output by mid-century. Batum is renamed to Batumi in 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. In , Ludvig Nobel and his Branobel company "revolutionized oil transport" by commissioning the first oil tanker and launching it on the Caspian Sea.

As kerosene lamps gained popularity, the refining industry grew in the area. But there is evidence to support Williams, not least of which is that the Drake well did not come into production until August 28, The discovery at Oil Springs touched off an oil boom which brought hundreds of speculators and workers to the area.

Canada's first gusher flowing well erupted on January 16, , when local oil man John Shaw struck oil at feet 48 m. The first modern oil drilling in the United States began in West Virginia and Pennsylvania in the s. Edwin Drake 's well near Titusville, Pennsylvania , is typically considered the first true modern oil well , and touched off a major boom. The first successful oil tanker , the Zoroaster , was built in in Sweden, designed by Ludvig Nobel.

It operated from Baku to Astrakhan. In the early s the Texas Company developed the first mobile steel barges for drilling in the brackish coastal areas of the Gulf of Mexico. During World War II — — control of oil supply from Baku and Middle East played a huge role in the events of the war and the ultimate victory of the allies. Cutting off the oil supply considerably weakened Japan in the latter part of the war. Important developments since World War II include deep-water drilling, the introduction of the Drillship , and the growth of a global shipping network for petroleum relying upon oil tankers and pipelines.

In , first offshore oil drilling at Oil Rocks Neft Dashlari in the Caspian Sea off Azerbaijan eventually resulted in a city built on pylons. Oil spills and their cleanup have become an issue of increasing political, environmental, and economic importance. With the advent of hydraulic fracturing and other horizontal drilling techniques, shale play has seen an enormous uptick in production. Areas such as the Permian Basin and Eagle-Ford shales are now huge hotbeds of production for the largest oil corporations in the United States. The American Petroleum Institute divides the petroleum industry into five sectors: [22].

The following table shows the ten largest national oil companies ranked by reserves [23] [24] and by production in Most upstream work in the oil field or on an oil well is contracted out to drilling contractors and oil field service companies. Aside from the NOCs which dominate the Upstream sector, there are many international companies that have a market share. For example: [27]. Midstream operations are sometimes classified within the downstream sector, but these operations compose a separate and discrete sector of the petroleum industry.

Midstream operations and processes include the following:. While some upstream companies carry out certain midstream operations, the midstream sector is dominated by a number of companies that specialize in these services.

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Midstream companies include:. Some petroleum industry operations have been responsible for water pollution through by-products of refining and oil spills.

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Though hydraulic fracturing has significantly increased natural gas extraction, there is some belief and evidence to support that consumable water has seen increased in methane contamination due to this gas extraction. Hydrocarbons that comprise refined petroleum are resistant to biodegradation and have been found to remain present in contaminated soils for years. The industry is the largest industrial source of emissions of volatile organic compounds VOCs , a group of chemicals that contribute to the formation of ground-level ozone smog.

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Pollutants include nitrogen oxides , sulphur dioxide , volatile organic compounds and heavy metals. Researchers have discovered that the petrochemical industry can produce ground-level ozone pollution at higher amounts in winter than in summer. The greenhouse gases due to fossil fuels drive global warming. Already in , at a symposium organised by the American Petroleum Institute for the centennial of the American oil industry , the physicist Edward Teller warned then of the danger of global climate change.

The Intergovernmental Panel on Climate Change , founded by the United Nations in , concludes that human-sourced greenhouse gases are responsible for most of the observed temperature increase since the middle of the twentieth century. As a result of climate change concerns, many alternative energy enthusiasts have begun using other methods of energy such as solar and wind, among others. This recent view has some petroleum enthusiasts skeptic about the true future of the industry.

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As petroleum is a non-renewable natural resource the industry is faced with an inevitable eventual depletion of the world's oil supply. This study indicated a ratio of proven reserves to production in the Middle East at A misguided interpretation of the ratio has led to many false predictions of imminent world oil shortages since the early years of the oil industry in the s.

This has been especially true in the United States, where the ratio of proved reserves-to-production has been between 8 years and 17 years since Many have mistakenly interpreted the result as the number of years before the oil supply is exhausted. Such analyses do not take into account future reserves growth.

The Hubbert peak theory , which introduced the concept of peak oil , questions the sustainability of oil production. It suggests that after a peak in oil production rates, a period of oil depletion will ensue. Since virtually all economic sectors rely heavily on petroleum, peak oil could lead to a partial or complete failure of markets.

According to market 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. From Wikipedia, the free encyclopedia. For the magazine, see Oil Patch Hotline. Main article: History of the petroleum industry.

Main article: Environmental impact of the petroleum industry. See also: Oil pollution toxicity to marine fish. See also: Air pollution. See also: Global warming and Attribution of recent climate change.

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Baltimore: Johns Hopkins University Press, His research interests include enhanced oil recovery, unconventional gas engineering, theory of gas injection processes, multiphase flow in porous media, and well testing. Society of Canadian Petroleum Geologists. REID has industry experience that includes extensive project management, training and development, reservoir and drilling engineering, and environmental evaluations and acquisitions. Robinson LEON ROBINSON had a 39 year career at Exxon and made contributions in many technology areas such as: mud cleaners, explosive drilling, drilling data telemetry, subsurface rock mechanics, and drilling and hydraulic optimization techniques, tertiary oil recovery, on-site drilling workshops, world-wide drilling fluid seminars and rig site consultation. This firm is a major producer of pressure vessels for the refining, natural gas, oil production and petrochemical industries. His lecturing experience is mainly in petroleum-, wellsite- and operations geology, but also covers petrophysics, reservoir and well engineering.

Energy Policy. Chemical Industries. CRC Press.

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Krylov, A. Bokserman, E. CRC Press, The Caspian: Politics, Energy and Security. Routledge, The Former Soviet Union in Transition.

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May This article may be in need of reorganization to comply with Wikipedia's layout guidelines. Please help by editing the article to make improvements to the overall structure. IPIC is a long term strategic investor and it holds more than 18 investments in over 10 countries and on five different continents. Its investment portfolio includes:. Listen to this article Thanks for reporting this video! Our magic isn't perfect You can help our automatic cover photo selection by reporting an unsuitable photo. The cover is visually disturbing. The cover is not a good choice. Rich Minimal Serif.

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