Energy, Environment, and
Industrial Development
Michael B. McElroy
Frederick H. Abernathy
Lecture 18
April 18, 2005
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Petroleum. The word comes from Latin
words. Petra-rock and oleum – oil
Crude oil is a thick, brown or greenish
flammable liquid
Consists of a complex mix of various
hydrocarbons, largely in the alkane
series. Can vary greatly in appearance,
composition and purity.
Oil also contains sulfur. “Sweet” oil refers
to oil with low sulfur content. “Sour” oil is
high in sulfur
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The four lightest alkanes are CH4 (methane),
C2H6 (ethane), C3H8 (propane), and C4H10
(butane)
These are gases. Boiling points: CH4
(-161.6oC), C2H6 (-88.6oC), C3H8 (-42oC), and
C4H10 (-0.5oC)
Chains in the C5-7 range are light, easily
vaporized, clear naphas.
Chains from C6H14 through C12H26 are blended
to make gasoline
Kerosene is composed of chains in the C10-15
range
Diesel fuel and heating oils are in the range of
C10-20
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Boiling points for light petrol used as an
automobile fuel are in range 60-100oC
Heavy petrol, also used as auto fuel, boils
between 100-150oC
Light kerosene boils 120-150oC
Heavy kerosene, used as jet engine fuel,
boils 150-300oC
Diesel boils 250-350oC
Engine oil, used for lubrication, boils >
300oC
Heavies compounds used to make tar,
asphalt and residual fuel
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The Oil Producing Countries (2003)
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Saudi Arabia (OPEC)
United States
Russia
Iran (OPEC)
Mexico
China
Norway
Canada
United Arab Emirates (OPEC)
Venezuela (OPEC)
UK
Kuwait (OPEC)
Nigeria (OPEC)
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Major Exporters
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Saudi Arabia (OPEC)
Russia
Iran (OPEC)
U.A.E. (OPEC)
Venezuela (OPEC)
Kuwait (OPEC)
Nigeria (OPEC)
Mexico
Algeria (OPEC)
Libya (OPEC)
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Countries with largest reserves
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Saudi Arabia (OPEC)
Iraq
U.A.E. (OPEC)
Iran (OPEC)
Russia
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Oil is formed from decay of prehistoric
marine plants and animals
Buried under thick sedimentary layers
Heat and pressure turns it into a waxy
material known as kerogen and then into
liquid and gaseous forms
These migrate through rock layers until
they are eventually trapped in porous rock
reservoir – oil field
Liquid brought to surface by drilling and
pumping
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Economics of Oil Production
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In early days, energy equivalent of 1
barrel oil was used to recover 50
barrels
Today 1-5 barrels recovered for
every barrel expanded
Costs approximately $1 to pump a
barrel of oil out of the ground in
Saudi Arabia. Price delivered to the
refinery in the U.S. ~$50
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http://en.wikipedia.org/wiki/Petroleum#Pricing
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Oil prices from 1860-1999 in 1999 dollars
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Source: http://www.eia.doe.gov/pub/international/iealf/BPCrudeOilPrices.xls
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http://en.wikipedia.org/wiki/Petroleum#Pricing
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Current global oil production is about
25 billion barrels per year
Value  $1.25 trillion
In a recent year, new discoveries
amounted to only 8 billion barrels
International Energy Agency (IEA)
projected annual demand to grow to
more than 30 billion barrels per year
No surplus capacity? Are rising
prices inevitable?
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Expensive alternatives to today’s oil
include the Athabasca oil sands in
U.W. Canada and the Venezuelan
Orinoco tar sands
Estimates suggest these reservoirs
may contain as much as two thirds of
world’s total oil
Significant energy required to liberate
soil from tar sands
Implications for CO2
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History of Oil Use
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Oil seeps were exploited in Mesopotamia as far
back as 3000 BC
Bitumen was traded extensively in the ancient
Middle East
Greek fire: a mixture of petroleum and lime. Caught
fire when moisture introduced.
First oil wells drilled in China in 4th century; bamboo
pipelines from oil wells to salt springs in 10th
century
Oil interest received in Galicia and Romania in
early 1800’s
Kerosene used to light lamps by 1850
European crude production estimated at 36,000
barrels in 1859, mainly from Galicia and Romania
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History of Oil Use
George Bissell’s vision: to drill for oil
and use it as an illuminant. Professor
Silliman’s contribution
The Pennsylvania Rock Oil Company
“Colonel” Drake drills first well at
Titusville, 1859
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Canadian Dr. Abraham Gesner coined the word
kerosene (wax oil). Developed a process for
extracting oil from asphalt and refining it to
make illuminating oil. Applied for US patent
1854
Built plant in New York City producing 5000
gallons a day by 1859. Many companies in
game. Kerosene from coal (coal oil)
Drake strikes oil in Titusville, August 27, 1859
First flowing well struck April 1861 – 3000
barrels per day
3 million barrels produced in 1862. Price drops
to 10 cents a barrel
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US exports oil to Europe
Price rises to $13.75 a barrel at end of Civil War
John D. Rockefeller buys out partner Maurice
Clark 1865
Standard Oil Company formed January 10,
1870. Rockefeller retain one quarter of stock
Royal Dutch discovers oil in Sumatra, 1885
Henry Ford builds first car
Oil in Oklahoma 1905
First gas station, St. Louis, 1907
Oil in Persia, 1908
Standard of California wins concession in Saudi
Arabia, 1933
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Arab oil embargo, 1973. Price rises
from $2.90  $11.65. Alaskan
pipeline approved
Hostages taken in Iran, 1979
Price rises $13  $34
Exxon Valdez accident, 1989
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