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The World's Oil

In: Other Topics

Submitted By cmuotoh
Words 1600
Pages 7
Mike Williams
The Petroleum Industry and World’s Oil Suppliers
[Draft]
February 21, 2014

History of Petroleum
The world petroleum means literally rock oil. It was thought to be a completely different oil than that which comes from vegetable sources such as the olive, but modern research has traced its origin to the lipids (oil) of planktonic (free floating) plants and animals which live in brackish water such as blue-green algaes and foraminifera. The brackishness is essential because aerobic bacteria does not live in brackish water. Aerobic bacteria would decompose all of the organic matter. In brackish water the organic matter of the planktonic plants and animals sinks to the bottom and is incorporated in clay sediments which ultimately become sedimentary rocks. This is the origin of the oil shales (www.sjsu.edu).
Today, petroleum or crude oil, is the most traded commodity in the world. It is the most important commodity because of its common use in everyday life. The cars we drive today heavily depend on crude oil refined products such as gasoline and motor oil. The plastic products we use daily are created using by-products of crude oil. Crude oil is essential to our daily life, therefore making it a very highly demanded commodity. Unfortunately, because of the world’s dependency on oil, an increase in oil prices has huge effects on everything. Food prices dramatically increase when there is a shift in oil prices. Transportation costs for transporting food increases with higher oil prices, resulting in an increase in food prices. Increases in oil prices are generally caused by an increase in demand or a shortage of supply. Oil prices peaked to all-time highs following Hurricane Katrina in 2005. The Gulf Coast is a major source of crude oil and is home to the nation’s largest concentration of oil refineries (Polzin, 2005). The hurricane...

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