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The petroleum industry includes the global processes of exploration, extraction, refining, transporting (often by oil tankers and pipelines), and marketing petroleum products. The largest volume products of the industry are fuel oil and gasoline (petrol). Petroleum is also the raw material for many chemical products, including pharmaceuticals, solvents, fertilizers, pesticides, and plastics. The 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 a critical concern for many nations. Oil accounts for a large percentage of the world energy consumption, ranging from a low of 32% for Europe and Asia, up to a high of 53% for the Middle East. Other geographic regions consumption patterns are as follows: South and Central America (44%), Africa (41%), and North America (40%). The world consumes 30 billion barrels (4.8 km3) of oil per year, with developed nations being the largest consumers. 24% of the oil produced in 2004 was consumed in the United States. The production, distribution, refining, and retailing of petroleum taken as a whole represents the world’s largest industry in terms of dollar value.
Contents
1 History
1.1 Natural history
1.2 Early history
1.3 Modern history
1.4 Corporations
2 Industry structure
3 Environmental impact and future shortages
4 See also
4.1 Environmental issues
4.2 Financial and political
4.3 Oil geology
4.4 Oil-producing areas
5 References
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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. Over time, the decayed residue was covered by layers of mud and silt, sinking further down into the Earth 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.[citation needed] 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.
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. In the 9th century, oil fields were exploited in the area around modern Baku, Azerbaijan, to produce naphtha. 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. 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.
The Industrial Revolution generated an increasing need for energy which was fuelled mainly by coal, with other sources including whale oil. However, it was discovered that kerosene could be extracted from crude oil and used as a light and heating fuel. Petroleum was in great demand, and by the twentieth century had become the most valuable commodity traded on the world market.
Modern history
See also: Baku oil boom
Galician oil wells
Imperial Russia produced 3,500 tons of oil in 1825 and doubled its output by the mid-century. 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 (Baku-Batumi pipeline), completed in 1906, and the 162 km long pipeline to carry oil from Chechnya to the Caspian.
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. Nearly 200 small refineries operated in the suburbs of Baku by 1884. As a side effect of these early developments, the Apsheron Peninsula emerged as the world’s “oldest legacy of oil pollution and environmental negligence” In 1878, Ludvig Nobel and his Branobel company “revolutionized oil transport” by commissioning the first oil tanker and launching it on the Caspian Sea.
See also: The Petroleum Trail International Tourist Trail
The first modern oil refineries were set up by Ignacy ?ukasiewicz near Jas?o (then in the dependent Kingdom of Galicia and…(and so on)
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