Crude Oil Futures

The petroleum industry is involved in the exploration, extraction, production and marketing of petroleum products. This may be the largest global industry in existence and it has a far reaching impact upon our society, economy and environment.

What is petroleum?
It is classified as a fossil fuel because it is thought to have been formed from the fossilized remains of dead plants and animals. These remains were changed by the prolonged exposure to lots of heat and pressure in the crust of the earth. The remains were covered and preserved by mud layers. This later formed oil reservoirs that are located all across the globe.

Why is the petroleum industry important?
Our modern industrialized society runs largely on crude oil and its derivatives. Petroleum is used in the production of a multitude of chemical products, plastics, solvents and fuels. It is hard to imagine a world without these kinds of products.

How does the petroleum industry operate?
Different operations of this industry may be divided into 3 parts.

Part #1: Petroleum exploration, production and development.

Part #2: Transport of oil via tankers and pipelines

Part #3: Sales and consumers

When did the petroleum industry start?
The petroleum industry may be very old. There are signs that oil has been used as a means of lighting for more than a thousand years. The industrial revolution created a big demand for oil products. Petroleum was established as a most valuable commodity by the 20th century.

When will the world run out of oil?
Petroleum is a non-renewable energy resource and it will eventually be depleted. According to some estimates the world may run out of oil between the year 2050 and 2090. This depends upon whether oil supply and demand increases or decreases in the future.

The petroleum industry has unfortunately caused much water and air pollution. Although biofuels may supplement the energy market, the petroleum industry will continue to provide the biggest share of the world's oil, fuel and gasoline.

Reference: Ezine Article