How The Big Oil Companies Have Kept Substitutions At Bay Essay

The oil and gas industry is expansive and rather complex industry consisting of oil, fossil fuels, natural gas, oil and green energy sources. Combined the above sources make-up 32% of total energy consumed worldwide.

When people hear the word oil it is commonly interpreted as gas, but the oil that we drill is not what goes into our cars. The oil that is retrieved from the ground is called crude oil, Oil in its raw natural form and when it becomes refined it is used in plastics, rubber, and gasoline. ”Gasoline is a volatile, flammable liquid obtained from the refinement of petroleum, or crude oil. It was originally discarded as a byproduct of kerosene production.” The first oil well was found and harvested in Titusville, Pennsylvania by a man named Edwin L. Drake, in 1859. The well was about 70 feet deep (How gas). It pumped between 20-40 barrels a day

Petroleum is created over millions of years from dead alagae that goes to the bottom of the ocean and is buried beneath the surface.

Competition in the oil industry is separated by about 10 cents here in the US. The difference between ARCCO, Shell, Mobil, and Chevron, is between 1 and 10 cents. Oil companies don’t compete with each other. With gas prices constantly fluctuating towards the $3 mark, there is little room to raise prices. Consumers will not pay 25 cents more for a gallon of gas. Although Chevron Texaco and ExxonMobil make have a slight difference in price at the pump, the will not try to do anything to rock the boat.

Crude oil comes from plants and animals that have died millions of years ago. The heat and pressure turns most of the materials into a thick dark oil called crude oil or it is also called petroleum. There are three types of crude oil: Heavy crude oil, which is found in Lloydminster and in Kindersley, medium crude, oil is found in southwest Saskatchewan, and light crude oil is found in Weyburn, Estevan and Kindersley.

So what is this mysterious black gold substance that everyone refers to as crude oil? Basically, crude oil is a petroleum based substance that is naturally formed from plants and animals that roamed the Earth millions of years ago. These microorganisms settled deep within our Earth’s crust and comprises of numerous minerals, hydrocarbons, organic compounds and inconsequential traces of metals. Crude oil cannot just be drawn up from the ground and shoved into someone’s gas tank without first being refined

Of the all the oil fields throughout Canada, 25% are offshore locations in Newfoundland. 8% comes from either BC or Ontario and 67% of all onshore oil fields are in Alberta, which is defined by the term “Oil Country”. From these locations, pipelines are used to transport liquid oil to refineries. It is at these refineries the process of being turned into gasoline, diesel, and petroleum takes place. After this process, petroleum products are sent to distribution centres.

They then pump fluid through pipelines into the drilled areas in order to extract materials that would further indicate the presence of oil. Once a company is certain that there is a sufficient amount of oil at a given location to make drilling worthwhile, it sets up a more permanent structure, or platform, from which to extract it. The oil that is pumped out is sent through pipelines back to shore. An offshore facility can pump oil from a field for decades.

One instance, from real life, of the US government acting to promote competition and break-up monopolies occurred in 1911 when the United States Supreme Court ruled that Standard and Oil was an illegal monopoly. Standard and Oil Co Inc. was an American oil company established in 1870 by John D. Rockefeller as a corporation in Ohio which by early 1880 controlled some 90 percent of US refineries and oil pipelines and dominated the oil products market through horizontal integration and later through vertical integration. Standard and Oil gained a monopoly in the oil industry by buying rival refineries and forming several companies for distributing and marketing its products around the globe. In 1882, these various companies were combined into the Standard Oil Trust and It became the largest oil refinery monopoly in the world. Rockefeller became the richest man in the world which consequently made him a target of critics and politicians. These powerful politicians accused him of under-cutting and destroying his competitors by engaging in unethical practices, such as price fixing and colluding with railroads to eliminate his competition and to ultimately gain a monopoly in the industry. Other accusations by critics and politicians included: getting rich on rebates from railroads, bribing men to spy on competing companies, of making secret agreements, of coercing rivals to join the Standard Oil Company under

What is crude oil? Crude oil is found trapped in the underground rock; it is a natural occurring mixture of hydrocarbon compounds, cause from dead marine life and vegetation from millions of years ago. These materials had died and settled on the bottoms of streams, lakes, and oceans; where sediment had then covered this thick layer of organic materials, which applied heat and cooked this layer of materials to form what we now extract from the ground as petroleum.

Through all out the world, there many places where oil is common and where oil Is common there is usually tons of oil barrels.Oil is mostly common in Venezuela.Venezuela has about 298.4 billion barrels of oil!That’s a lot of oil barrels. Other places are Saudi Arabia,Canada,Iran,Iraq,Kuwait,Russia,United Arab Emirates,Libya,Nigeria,and lastly the United states.All of these countries are common for oil.All of them have big oil reserves and when there is big oil reserves we have tons of oil barrels.The oil doesn't just come in machine’s we have to dig for it with oil machine’s because if we didn’t dig we wouldn’t have oil.The oil is located in the earth but then again the oil barrels are located in several different countries that are on earth! Overall,oil barrels are located throughout the world (http://www.worldatlas.com/articles/the-world-s-largest-oil-reserves-by-country.html)

The revolting liquid that originates from petroleum, popularly used as a fuel has become such a large part in how the modern world functions. Without it, evolution within the human race and technology would not have come as far as it is. Oil was not always used as frequently and at such a big mass as it is now. The 1800’s were when the boom of oil sands was discovered in the United States, and led to an even bigger industrial revolution throughout the country and worldwide. This led to more people working with oil and in the oil industry, and led to where we are today, with the amount of oil we use daily. It all occurred because of a man named Edwin Drake who revolutionized the way we use oil and how we access it. He also created a new

Oil is a natural resource obtained by drilling underground. It is used in a variety of ways in our daily lives; heating our homes, running automobiles, and being used as the topic of a college report.It has multiple roles in our daily lives being involved in heating our homes, running automobiles and providing a topic for college students to write a report on. Many parts of crude oil are not harmful to the environment but some parts of it are (4) It is composed of hydrocarbons. which naturally occur in nature, which means that there are naturally occurring microorganisms with the ability to break down these hydrocarbons. (8) That being the case, when large quantities of oil are unnaturally released into the environment it needs to be cleaned up in a timely manner so as to lessen the impact on animals living in the environment.

These may also include the restrictions regarding the oil stock limit and in some circumstances sales restriction of the oil. If ExxonMobil’s business behavior is examined then it reveals that the operational network of the company is very vast. There are many possibilities that ExxonMobil may be indulged in illegal price hike. But if public policies are also be kept in mind then it can be said that in lack of strong leadership and without more strict but a just public control over the affairs of such a huge organization may have the potential possibilities of such malpractices(Barron, Taylor, and Umbeck, 2001).

Specific purpose: I want my audience to understand the process of the oil production from the extraction from the field to the oil refinery.