Oil Industry | 15 Things You Do Not Know About Oil Industry
Oil industry has been a special and controversial topic for years. It affects our daily life from where we go to what we buy. It affects all the products we use including cloths, furniture and so on. Our economy really depends on the oil industry as it dictates the prices many other goods at the same time the world’s richest and most powerful are involved with oil or the Black Gold what it it is rightfully known as.
Oil is the one of the most polluting factors that is destroying the environment. There is no other way to put it petroleum is really damaging to our environment. Of course petroleum isn’t bad in itself but once it goes to the combustion process it produces a large amount of nitrous oxide and sulphur dioxide this Chemicals combined with water in the atmosphere forms what we know as the acid. The Oil Industry is also particularly responsible for global warming or climate change. At the beginning of the 20th century a Nobel Winning Scientists Svante Arrhenius demonstrated that carbon dioxide emissions caused an increase in earth surface temperature creating what we now known as Arrhenius Effect.
How we normally associate Vladimir Putin is with his non compromising politics and alleged meddling in the US 2016 Presidential Elections. It seems like he is also a very wealthy man. In fact while he is one of the powerful man on Earth if not the most powerful, nobody knows exactly what is his net worth. This leads some to speculate that he he is far richer then what he let’s on.
For example Putin has stake in quite a few companies that are active mostly in the oil industry. A Kremlin source allegedly said that Russian President has a 37% share in the world’s 5th largest company which is in Russia, that produces oil and gas. He also controls 4.5 % stake in Gazprom a natural gas company. It also makes some wonder if he is actually the the wealthiest person in the world right now.
Oil is a natural resource and that will end shortly. No matter what all companies might say, realistically speaking we are running out of oil. It is a natural resource and like all natural resource there is limitation to it and to the extend you can exploit it. Each year we use around 11 million tons in fossil fuels and and go through 4 billions tons of crude oil. According to the Cambridge Energy Research Associates there are 3.74 trillion barrels of oil that are left to be exploited. They also predicted that by the middle of 21st century we will be hit by what’s called the Peak Oil. Peak Oil comes with a lot of negative effects such as – huge increase in the price of gas, global disruptions, anarchy and that we would start exploiting protected drilling sites. All in all, it is likely that by the end of the year 2050 we will essentially run out of oil.
The Deepwater Horizon Offshore drilling rig exploded on 20th April, 2010 – causing one of the biggest oil industry disaster in our time. The BP Oil disaster was a staggering 210 gallon spill in the Gulf of Mexico which made an irredeemable damage to the environment. The company responsible for for this is the British Petroleum or BP PLC and it was found to be grossly negligent in handling of the situation and that the incident could have been prevented. In 2015 a New Orleans Federal Judge ruled that the company should $ 20.8 Billion to make up for the for the damages they have made and cover the Clean Water Act penalties.
Charles Koch may not be the richest man in the world, he is actually at the 6th place, but he is the wealthiest in the oil industry. American Charles Koch is a businessman, philanthropist and political donor, who has the current net worth of around $ 60 Billion. His company the Koch Industries initially made his big bucks in the oil refining and chemicals business but then expanded to process & pollution control equipment, minerals, polymers, fibers and many more. He is also fan of art and educational institutes. He is a frequent donor and even co-founded The Cato Institute an American Librarian Think Tank.
Gas stations usually warn us not to use our mobile phones and we rarely stop to ask why as it seems like something that makes sense. So we don’t really question it too much. Apparently this is a myth fueled by Urban Legends and there have been no reported incidence of fire starting as a result of mobile phone usage in proximity to a gas tank. However there is one thing that can cause this and that is static electricity. The good news is that static files are in a rare occurrence but the bad news of course is that when they do happen – electricity even in in a small amount can create a huge explosion.
Beautiful and wild Alaska is one of the last truly clean places in the United States. The Arctic National Wildlife refuge is home to the polar bears, wolverines and many other wonderful animals. It is considered to be a sanctuary by many. It covers 19 19.6 millions in acres in North Eastern Alaska and it is currently threatened or more likely soon to disappear. Since 1977 this refuge has been the center of political controversy, with GOP trying to have it exploited for a record 50 times since then and always failing. In 2017 though the tax cuts and Jobs Act of 2017 will have made all of possible. Trump signed this decision into law in December 2017.
Conspiracy theories states that the US invaded Iraq and and middle east for oil. This is one of the most debated and controversial conflicts in the recent history. The Iraq war it was sole largely the reason why the 43rd President of United States of America George W. Bush had come under scrutiny from from both American citizens and and foreign critics. It all began in 1973, a year in which the US could have almost invaded Saudi Arabia since oil prices had soared and US citizens had to use oil carefully standing in long lines to obtain it. Fast forward to 2013, the US attacked Iraq overthrowing the Regime of Saddam Hussein and essentially starting a 8 years war. Since then the members of the US and UK administration had proved that the US who was aided by the UK , was largely interested in controlling Iraq Oil Reserves.
Venezuela is is now going through, what is probably it’s toughest period. Its oil reserves are known to be world’s largest. A total of 297 million barrels of crude oil are believed to exist as as of 2014. The country is also one of the largest supplier for United States, which receives around 1.4 thousand barrels daily. The organisation of the petroleum exporting countries said that the Latin American country produced around 2.47 thousand barrels in 2009, which could mean that at this rate Venezuela has around 234 years of production time left. The problem with determining exactly what it’s real resources – is Venezuela’s lack of transparency and political unrest. This makes it hard to determine the exact level of oil production. What many people do not realize is that, Saudi Arabia is second when it comes to oil reserves found in the ground.
The Oil industry has lot of secrets to keep from its investors which also includes the real production rates. Another secret that has been going on for years is the financial performance of Saudi Aramco. Aramco is an Saudi Arabian company and just happens to be world’s most profitable oil company. Saudi Arabia has 100% stake in its business which has the a net income of $ 33.8 Billion dollars in 2017 and Cash Flows of $ 52.1 Billion.
The most common way of storing oil is by the barrel, which in the US comes at a standard 42 gallons per unit. But did you know that manufacturers actually got inspired from the alcohol industry. That’s because whisky used to be stored in 40 gallons barrels and they actually added 2 gallons more for covering spillages that would be done in transit. Whether we know it or not we all depend in some degree on the price of one barrel of oil.
For example – an increase in the price of one barrel of oil leaves the households with less money to spend on other expenses and businesses that needs to deliver goods from place to place also have to cover the extra cost. Also the cost of gasoline directly influences the price of airline tickets among many other things.
Nylon and synthetic polyester are a fashion mainstay and are used for various products. They are made by using chemicals found in petroleum and coal – clothing items, food packages, instrument strings are made from nylon. Synthetic polyester has an interesting history. It was created between 1939 and 1941 by Calico Printers Association Limited a British Textile Company. By the year 1951 it had already sold the rights to produce in the US as – Dacron. Synthetic fibers are more resistant then the natural ones and are also non-biodegradable sparking a debate between the commodity and long term uses of this products.
Americans fly a lot and use their cars everyday and also many products that they use are made from petroleum. all of this combined with companies needing oil for various reasons such as such as transportation of goods, it all really adds up. Right now US is the largest consumer of oil way ahead of the companies like China. The US uses around 19. 6 million barrels of oil everyday which almost double the amount of what China uses. The other countries on the list are Japan and India followed closely by Russia.
Considering the fact that the industry is highly profitable and the job isn’t easy for oil Rig workers, they make a lot of money. Surely not all the jobs are equal since you need a College Degree to become an engineer, but even the inexperienced workers that get to do the dirty work starts with benefits such as training and a good salary. How good well the average is $ 50,000 a year. More experienced workers such as drill technicians earn around $ 200,000 a year. If you love fields such as chemistry, geology, engineering – you could get a starting salary of $ 100,000 and of course with more experience comes more money.
It’s hard to imagine this today but back in the 19th century people didn’t need gasoline since there were no use for it instead instead oil refineries made kerosene which was used for lighting lamps. Gasoline was just a byproduct from the production of kerosene. And it was thrown away as waste. Today oil is metaphorically referred to black gold since its so valuable to us.
Do you think we will find the sustainable solution to replace oil in the future ?