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Micro Economics Report on Crude Oil Market

Autor:   •  April 11, 2018  •  Coursework  •  2,670 Words (11 Pages)  •  131 Views

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ECONOMICS PROJECT

  1. What is crude oil?
  1. History
  2. Historical pricing

1: -

 Crude oil is a natural occurring substance basically found underground and also called as fossil fuel, crude oil is mostly found in those area where ocean basins where present earlier as this is made up of dead plants and animals which turn into the fossil with the processing of thousands of thousand years naturally. It is consisted of the hydrocarbon which varies from 50 to 97% in this, it is a now renewable substance as once it is consumed it can’t be renewed, it is not used directly as this is unrefined form of oil, this crude oil is refined into jet fuel, petroleum, diesel, petro chemicals products. From these substance, it is used in several commodities also, as petroleum is further used in making various products such as plastic, we are not aware but we are surrounded by the crude oil. Crude oil is mostly found in those area where ocean basins where present earlier as this is made up of dead plants and animals which turn into the fossil with the processing of thousands of thousand years naturally.

  1. History

From the data collected by the Archaeologists and Geologists, it is said that crude oil is being used from thousands of years ago, earlier it was found that back 4000 years ago crude oil was used by the people for the construction of walls , later it was seen that 2000 years ago china used it as the fuel for the first time , later china itself constructed oil wells of 800 feet depth in 347A.D , the first mention of crude oil in U.S.A history was in 1595 , prior to this there was no crude oil data was found by the researchers. In 1745 for the first-time oil sand was mined as per the records but as in the 1859 for the first time in Pennsylvania modern well was built and crude oil was extracted out, so in the modern history it was the noted event as for the first-time crude oil was discovered in the modern era through the modern wells, it was founded by the conole drake, and later on in the 1901 it was Discovered in Texas.

  1. Historical pricing

[pic 1]

SOURCE ( DATA TAKEN FROM CHARTSBIN.COM )

  1. HOW IT IS EXTRACTED?

2.1) STAGES INVOLVED IN EXTRACTION

2 How it is extracted?

Usually crude oil is found in the depth of the earth from where it is extracted through the machinery and all process. Firstly, the crude oil is searched by either geologists or by the private firms, once they found the correct area of crude oil, an accumulation starts on that oil to see whether that oil is profitable or not, profitable as in taking out crude oil is a huge costing process and if it doesn’t prove to be profitable there is no use of drilling and being in debts. After the crude oil is passed as profitable, hole is made at that particular location and drilling starts as well as chemicals are used to control the whole drilling process, after the drilling crude is taken out extraction procedure starts.

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