Crude Oil
By: Jack Clark, Jacob Stewart
Drew Paul, Mark Oglesby
What is Crude Oil?
• Crude Oil is petroleum that comes out of
the ground before it is refined.
• It is formed from fossilized ancient
vegetation and animal remains.
• Deposits can be found in the US, Canada,
Iran, Iraq, Saudi Arabia, etc.
• It’s a gooey black liquid, that is trapped
deep within earths crust, dispersed in
pores and cracks.
Peak Production
• The pressure in a well drops, and its rate
of conventional crude oil production starts
to decline.
Proven Oil Reserves
• Identify deposits from which conventional
crude oil can be extracted profitably at
current prices with current technology.
Extraction process
• Pump oil up from underground reservoirs
– From underneath land and sea
– Requires huge amounts of high quality energy
– Can cost billions per well
Advantages
•
•
•
•
High net energy yield but, it is decreasing
Efficient distribution system
Low land disruption
Ample supply for several decades
Disadvantages
• Water pollution from oil spills and leaks
• Environment costs not included in market
price
• Release of CO2 and other air pollutants
when burned
• Vulnerable to international supply
interruptions
OPEC
• Organization of Petroleum Exporting
Countries
• Iran, Iraq, Kuwait, Saudi Arabia,
Venezuela
• Have a huge influence in oil prices and
trade
Oil Depletion Time
• Net increase of global oil production at
about 1% per year
• But it is expected to fall to 0% and even go
into the negatives by this year
• Decline rate is expected to reach 10% by
2030
• There are enough oil reserves to last only
40 more years
Net Energy
• Crude oil has a high net energy yield, but it
is decreasing every year
Proven vs Unproven reserves
•
Unproven reserves
– Geologically equivalent to proven reserves
– Political and regulatory barriers to extracting
the oil within
•
Proven reserves
– 90% certain the crude oil within the reserve
is recoverable
– Largest proven oil reserves are in Saudi
Arabia, Canada, Iran, and Kuwait
Sources
• http://www.petroleum.co.uk/petroleumreserves
• http://www.imeche.org/knowledge/themes/
energy/energy-supply/fossil-energy/whenwill-oil-run-out
• Miller, G. Tyler, Jr. LIVING IN THE
ENVIRONMENT. 17th ed. Canada:
Yolanda Cossio, 2012. Print. AP Edition.