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Using Petroleum. ONE BARREL crude oil yields ALL OF. Quality of crude is declining. Refineries must be reconfigured for this, expense makes them inflexible Requires more energy in Impacts … ERoEI. “Boutique gasoline” in summer for local smog control & T. Price rises spread to - PowerPoint PPT Presentation
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UsingPetroleum
ONE BARREL crude oil yields ALL OF
Quality of crude is declining
Refineries must be reconfigured for this, expense makes them inflexibleRequires more energy in
Impacts … ERoEI
“Boutique gasoline” in summer for local smog control & T
Reid Vapor PressureReFormulated GasolineCleaner Burning Gasoline
Price rises spread toWA, OR, BC and evenAustralia
Oil industry (“oil patch”)
Upstream Exploration & extraction
Extraction is mostly controlled by NOCs
All of OPEC, 1/3 of rest
Downstream/mid-stream Refining, distribution,
retailing Transport, ship &
pipelines
Many tax subsidies Oil depletion allowance
Move profits/losses from down/mid to up
Intangible drilling cost allowance
Deduct 70% of well cost in 1st yr, rest over 5 yrs
Enhanced oil recovery credit
For running stripper wells
What/who sets oil $ ?
Depleting supply of cheap-to-market oil
Cost of “last barrel” to large pop in developing country
Demand in developed world is intertwined w/ global finance
Motivations of NOCs (85%) vs multinationals (15%)
CERA 2008
barrel price required to sustain flow
Likely overstated!
Petrostates Organization of
Petroleum Exporting Countries ~40% of world extraction
Libya, Algeria, Venezuela, Ecuador, Nigeria, Angola, Iraq, Iran, Kuwait, Saudi Arabia, Qatar, UAE
Cartel to set oil price for max. profit to petro-economies
“Dutch disease” Big revenue flow
strengthens currency, makes exports too expensive to compete
High wages, expensive real estate
“Oil curse” Highly automated, no
need for educated pop no incentive to diversify
economy easy control & corruption,
suppression
Fake Middle East Oil Reserves