Crude OilCrude Oil

By: By: Jack ClarkJack Clark, , Jacob StewartJacob Stewart Drew PaulDrew Paul, , Mark OglesbyMark Oglesby

What is Crude Oil?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 ProductionPeak Production

• The pressure in a well drops, and its rate of conventional crude oil production starts to decline.

Proven Oil ReservesProven Oil Reserves

• Identify deposits from which conventional crude oil can be extracted profitably at current prices with current technology.

Extraction processExtraction process

• Pump oil up from underground reservoirs– From underneath land and sea– Requires huge amounts of high quality energy– Can cost billions per well

AdvantagesAdvantages

• High net energy yield but, it is decreasing

• Efficient distribution system

• Low land disruption

• Ample supply for several decades

DisadvantagesDisadvantages

• 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

OPECOPEC

• Organization of Petroleum Exporting Countries

• Iran, Iraq, Kuwait, Saudi Arabia, Venezuela

• Have a huge influence in oil prices and trade

Oil Depletion TimeOil 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 EnergyNet Energy

• Crude oil has a high net energy yield, but it is decreasing every year

Proven vs Unproven reservesProven 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

SourcesSources

• http://www.petroleum.co.uk/petroleum-reserves

• http://www.imeche.org/knowledge/themes/energy/energy-supply/fossil-energy/when-will-oil-run-out

• Miller, G. Tyler, Jr. LIVING IN THE ENVIRONMENT. 17th ed. Canada: Yolanda Cossio, 2012. Print. AP Edition.