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Petroleum ( Latin|L. petroleum , from (rock) + (oil)"Petroleum". Concise Oxford English Dictionary ) or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbon s of various molecular weights and other liquid organic compound s, that are found in Formation (stratigraphy)|geologic formations beneath the Earth|Earth's surface. A fossil fuel , it is formed when large quantities of dead organisms, usually zooplankton and algae , are buried underneath sedimentary rock and undergo intense heat and pressure.

Petroleum is recovered mostly through oil drilling . This comes after the studies of structural geology (at the reservoir scale), sedimentary basin analysis, reservoir characterization (mainly in terms of porosity and permeable structures). It is refined and separated, most easily by boiling point , into a large number of consumer products, from petrol (or gasoline ) and kerosene to asphalt and chemical reagents used to make plastics and pharmaceuticals . Petroleum is used in manufacturing a wide variety of materials, and it is estimated that the world consumes about 88 million barrels each day.

The use of fossil fuels such as petroleum can have a negative impact on Earth's biosphere, releasing pollutants and greenhouse gases into the air and damaging ecosystems through events such as oil spill s. Concern over the oil depletion|depletion of the earth's non-renewable resource|finite reserves of oil, and the effect this would have on a society dependent on it, is a field known as peak oil .

Etymology

The word petroleum comes from Greek "petra" for rock and "elaion" for oil. The term was found (in the spelling "petraoleum") in 10th-century Old English sources.Oxford English Dictionary online edition, entry "petroleum" It was used in the treatise De Natura Fossilium , published in 1546 by the German mineralogist Georg Bauer , also known as Georgius Agricola.Bauer (1546) In the 19th century, the term petroleum was frequently used to refer to mineral oils produced by distillation from mined organic solids such as cannel coal (and later oil shale ), and refined oils produced from them; in the United Kingdom, storage (and later transport) of these oils were regulated by a series of Petroleum Acts, from the Petroleum Act 1862 c. 66 onward.

Composition

In its strictest sense, petroleum includes only crude oil, but in common usage it includes all liquid, gaseous, and solid (e.g., paraffin ) hydrocarbons . Under surface standard conditions for temperature and pressure|pressure and temperature conditions , lighter hydrocarbons methane , ethane , propane and butane occur as gases, while pentane and heavier ones are in the form of liquids or solids. However, in an underground oil reservoir the proportions of gas, liquid, and solid depend on subsurface conditions and on the phase diagram of the petroleum mixture.Hyne (2001), pp. 1–4.

An oil well produces predominantly crude oil, with some natural gas solubility|dissolved in it. Because the pressure is lower at the surface than underground, some of the gas will come out of solution and be recovered (or burned) as associated gas or solution gas . A gas well produces predominantly natural gas. However, because the underground temperature and pressure are higher than at the surface, the gas may contain heavier hydrocarbons such as pentane , hexane , and heptane in the gaseous state . At surface conditions these will condense out of the gas to form natural gas condensate , often shortened to condensate. Condensate resembles petrol in appearance and is similar in composition to some volatility (chemistry)|volatile light crude oil s.

The proportion of light hydrocarbons in the petroleum mixture varies greatly among different oil fields , ranging from as much as 97% by weight in the lighter oils to as little as 50% in the heavier oils and bitumen s.

The hydrocarbons in crude oil are mostly alkane s, cycloalkane s and various aromatic hydrocarbon s while the other organic compounds contain nitrogen , oxygen and sulfur , and trace amounts of metals such as iron, nickel, copper and vanadium . The exact molecular composition varies widely from formation to formation but the proportion of chemical element s vary over fairly narrow limits as follows:Speight (1999), p. 215–216.

Element !! Percent range
Carbon
Hydrogen
Nitrogen
Oxygen
Sulfur
Metals

Four different types of hydrocarbon molecules appear in crude oil. The relative percentage of each varies from oil to oil, determining the properties of each oil.

Hydrocarbon !! Average !! Range
Paraffin s
Naphthene s
Aromatic s
Asphaltics

Crude oil varies greatly in appearance depending on its composition. It is usually black or dark brown (although it may be yellowish, reddish, or even greenish). In the reservoir it is usually found in association with natural gas, which being lighter forms a gas cap over the petroleum, and saline water which, being heavier than most forms of crude oil, generally sinks beneath it. Crude oil may also be found in semi-solid form mixed with sand and water, as in the Athabasca oil sands in Canada, where it is usually referred to as crude bitumen . In Canada, bitumen is considered a sticky, black, tar-like form of crude oil which is so thick and heavy that it must be heated or diluted before it will flow. Venezuela also has large amounts of oil in the Orinoco oil sands , although the hydrocarbons trapped in them are more fluid than in Canada and are usually called extra heavy oil . These oil sands resources are called unconventional oil to distinguish them from oil which can be extracted using traditional oil well methods. Between them, Canada and Venezuela contain an estimated of bitumen and extra-heavy oil, about twice the volume of the world's reserves of conventional oil.

Petroleum is used mostly, by volume, for producing fuel oil and petrol, both important " primary energy " sources. 84% by volume of the hydrocarbons present in petroleum is converted into energy-rich fuels (petroleum-based fuels), including petrol, diesel, jet, heating, and other fuel oils, and liquefied petroleum gas . The lighter grades of crude oil produce the best yields of these products, but as the world's reserves of light and medium oil are depleted, oil refineries are increasingly having to process heavy oil and bitumen, and use more complex and expensive methods to produce the products required. Because heavier crude oils have too much carbon and not enough hydrogen, these processes generally involve removing carbon from or adding hydrogen to the molecules, and using fluid catalytic cracking to convert the longer, more complex molecules in the oil to the shorter, simpler ones in the fuels.

Due to its high energy density , easy transportability and oil reserves|relative abundance , oil has become the world's most important source of energy since the mid-1950s. Petroleum is also the raw material for many chemical products, including pharmaceutical s, solvent s, fertilizer s, pesticide s, and plastics; the 16% not used for energy production is converted into these other materials.
Petroleum is found in porosity|porous rock formations in the upper stratum|strata of some areas of the Earth 's crust (geology)|crust . There is also petroleum in tar sands|oil sands (tar sands) . Known oil reserves are typically estimated at around 190& nbsp;km³ (1.2 1000000000000 (number)|trillion long and short scales|(short scale) barrel (unit)|barrels ) without oil sands, or 595& nbsp;km³ (3.74 trillion barrels) with oil sands. Consumption is currently around per day, or 4.9& nbsp;km³ per year. Which in turn yields a remaining oil supply of only about 120 years, if current demand remain static.

Chemistry

Petroleum is a mixture of a very large number of different hydrocarbon s; the most commonly found molecules are alkane s (linear or branched), cycloalkane s, aromatic hydrocarbon s, or more complicated chemicals like asphaltene s. Each petroleum variety has a unique mix of molecule s, which define its physical and chemical properties, like color and viscosity .

The alkanes , also known as paraffins , are saturation (chemistry)|saturated hydrocarbons with straight or branched chains which contain only carbon and hydrogen and have the general formula C_nH_2n+2. They generally have from 5 to 40 carbon atoms per molecule, although trace amounts of shorter or longer molecules may be present in the mixture.

The alkanes from pentane (C₅H₁₂) to octane (C₈H₁₈) are oil refinery|refined into petrol, the ones from nonane (C₉H₂₀) to hexadecane (C₁₆H₃₄) into diesel fuel , kerosene and jet fuel . Alkanes with more than 16 carbon atoms can be refined into fuel oil and lubricating oil . At the heavier end of the range, paraffin wax is an alkane with approximately 25 carbon atoms, while asphalt has 35 and up, although these are usually Fluid catalytic cracking|cracked by modern refineries into more valuable products. The shortest molecules, those with four or fewer carbon atoms, are in a gaseous state at room temperature. They are the petroleum gases. Depending on demand and the cost of recovery, these gases are either flared off, sold as liquified petroleum gas under pressure, or used to power the refinery's own burners. During the winter, Butane (C₄H₁₀), is blended into the petrol pool at high rates, because butane's high vapor pressure assists with cold starts. Liquified under pressure slightly above atmospheric, it is best known for powering cigarette lighters, but it is also a main fuel source for many developing countries. Propane can be liquified under modest pressure, and is consumed for just about every application relying on petroleum for energy, from cooking to heating to transportation.

The cycloalkanes , also known as naphthenes , are saturated hydrocarbons which have one or more carbon rings to which hydrogen atoms are attached according to the formula C_nH_2n. Cycloalkanes have similar properties to alkanes but have higher boiling points.

The aromatic hydrocarbons are degree of unsaturation|unsaturated hydrocarbons which have one or more planar six-carbon rings called benzene ring s, to which hydrogen atoms are attached with the formula C_nH_n. They tend to burn with a sooty flame, and many have a sweet aroma. Some are carcinogenic .

These different molecules are separated by fractional distillation at an oil refinery to produce petrol, jet fuel, kerosene, and other hydrocarbons. For example, 2,2,4-Trimethylpentane (isooctane), widely used in petrol, has a chemical formula of C₈H₁₈ and it reacts with oxygen exothermic ally:

:2& nbsp;_{( l )} + 25& nbsp;_{( g )} ? 16& nbsp;_{( g )} + 18& nbsp;_{( g )} + 10.86 MJ/mol (of octane)

The amount of various molecules in an oil sample can be determined in laboratory. The molecules are typically extracted in a solvent , then separated in a gas chromatograph , and finally determined with a suitable detector , such as a flame ionization detector or a mass spectrometer .. TemaNord 2003:516. Due to the large number of co-eluted hydrocarbons within oil, many cannot be resolved by traditional gas chromatography and typically appear as a hump in the chromatogram. This unresolved complex mixture (UCM) of hydrocarbons is particularly apparent when analysing weathered oils and extracts from tissues of organisms exposed to oil.

Incomplete combustion of petroleum or petrol results in production of toxic byproducts. Too little oxygen results in carbon monoxide . Due to the high temperatures and high pressures involved, exhaust gases from petrol combustion in car engines usually include nitrogen oxide s which are responsible for creation of photochemical smog .

Empirical equations for thermal properties

Heat of combustion

At a constant volume the heat of combustion of a petroleum product can be approximated as follows:

:

Q_v = 12,400 - 2,100d^2

.

where

Q_v

is measured in cal/gram and d is the specific gravity at .

Thermal conductivity

The thermal conductivity of petroleum based liquids can be modeled as follows:

:

K = \frac{0.813}{d}

0.547

where K is measured in BTUhr^-1ft^-2& nbsp;, t is measured in °F and d is the specific gravity at .

Specific heat

The specific heat of a petroleum oils can be modeled as follows:

:

c = \frac{1}{\sqrt{d

,

where c is measured in BTU/lbm-°F, t is the temperature in Fahrenheit and d is the specific gravity at .

In units of kcal/(kg·°C), the formula is:

:

\frac{1}{\sqrt{d

,

where the temperature t is in Celsius and d is the specific gravity at 15 °C.

Latent heat of vaporization

The latent heat of vaporization can be modeled under atmospheric conditions as follows:

:

L = \frac{1}{d}

,

where L is measured in BTU/lbm, t is measured in °F and d is the specific gravity at .

In units of kcal/kg, the formula is:

:

L = \frac{1}{d}

,

where the temperature t is in Celsius and d is the specific gravity at 15 °C.United States Bureau of Standards, "Thermal Properties of Petroleum Products". Miscellaneous Publication No. 97, November 9, 1929.

Formation

Petroleum is a fossil fuel derived from ancient fossilized organic material s, such as zooplankton and algae . Vast quantities of these remains settled to sea or lake bottoms, mixing with sediments and being buried under anoxic sea water|anoxic conditions . As further layers settled to the sea or lake bed, intense heat and pressure built up in the lower regions. This process caused the organic matter to change, first into a waxy material known as kerogen , which is found in various oil shale s around the world, and then with more heat into liquid and gaseous hydrocarbons via a process known as catagenesis (geology)|catagenesis . Formation of petroleum occurs from hydrocarbon pyrolysis in a variety of mainly endothermic reactions at high temperature and/or pressure.

There were certain warm nutrient-rich environments such as the Gulf of Mexico and the ancient Tethys Sea where the large amounts of organic material falling to the ocean floor exceeded the rate at which it could decompose. This resulted in large masses of organic material being buried under subsequent deposits such as shale formed from mud. This massive organic deposit later became heated and transformed under pressure into oil.

Geologists often refer to the temperature range in which oil forms as an "oil window"—below the minimum temperature oil remains trapped in the form of kerogen, and above the maximum temperature the oil is converted to natural gas through the process of thermal cracking . Sometimes, oil formed at extreme depths may migrate and become trapped at a much shallower level. The Athabasca Oil Sands are one example of this.

Reservoirs

Crude oil reservoirs

Three conditions must be present for oil reservoirs to form: a source rock rich in hydrocarbon material buried deep enough for subterranean heat to cook it into oil; a porous and permeability (fluid)|permeable reservoir rock for it to accumulate in; and a cap rock (seal) or other mechanism that prevents it from escaping to the surface. Within these reservoirs, fluids will typically organize themselves like a three-layer cake with a layer of water below the oil layer and a layer of gas above it, although the different layers vary in size between reservoirs. Because most hydrocarbons are less dense than rock or water, they often migrate upward through adjacent rock layers until either reaching the surface or becoming trapped within porous rocks (known as oil reservoir|reservoirs ) by impermeable rocks above. However, the process is influenced by underground water flows, causing oil to migrate hundreds of kilometres horizontally or even short distances downward before becoming trapped in a reservoir. When hydrocarbons are concentrated in a trap, an oil field forms, from which the liquid can be extracted by drill ing and pump ing.

The reactions that produce oil and natural gas are often modeled as first order breakdown reactions, where hydrocarbons are broken down to oil and natural gas by a set of parallel reactions, and oil eventually breaks down to natural gas by another set of reactions. The latter set is regularly used in petrochemical plants and oil refineries .

Wells are drilled into oil reservoirs to extract the crude oil. "Natural lift" production methods that rely on the natural reservoir pressure to force the oil to the surface are usually sufficient for a while after reservoirs are first tapped. In some reservoirs, such as in the Middle East, the natural pressure is sufficient over a long time. The natural pressure in many reservoirs, however, eventually dissipates. Then the oil must be pumped out using “artificial lift” created by mechanical pumps powered by gas or electricity. Over time, these "primary" methods become less effective and "secondary" production methods may be used. A common secondary method is “waterflood” or injection of water into the reservoir to increase pressure and force the oil to the drilled shaft or "wellbore." Eventually "tertiary" or "enhanced" oil recovery methods may be used to increase the oil's flow characteristics by injecting steam, carbon dioxide and other gases or chemicals into the reservoir. In the United States, primary production methods account for less than 40% of the oil produced on a daily basis, secondary methods account for about half, and tertiary recovery the remaining 10%. Extracting oil (or “bitumen”) from oil/tar sand and oil shale deposits requires mining the sand or shale and heating it in a vessel or retort, or using “in-situ” methods of injecting heated liquids into the deposit and then pumping out the oil-saturated liquid.

Unconventional oil reservoirs

Oil-eating bacteria biodegradation|biodegrade oil that has escaped to the surface. Oil sands are reservoirs of partially biodegraded oil still in the process of escaping and being biodegraded, but they contain so much migrating oil that, although most of it has escaped, vast amounts are still present—more than can be found in conventional oil reservoirs. The lighter fractions of the crude oil are destroyed first, resulting in reservoirs containing an extremely heavy form of crude oil, called crude bitumen in Canada, or extra-heavy crude oil in Venezuela . These two countries have the world's largest deposits of oil sands.

On the other hand, oil shale s are source rocks that have not been exposed to heat or pressure long enough to convert their trapped hydrocarbons into crude oil. Technically speaking, oil shales are not always shales and do not contain oil, but are fined-grain sedimentary rocks containing an insoluble organic solid called kerogen . The kerogen in the rock can be converted into crude oil using heat and pressure to simulate natural processes. The method has been known for centuries and was patented in 1694 under British Crown Patent No. 330 covering, "A way to extract and make great quantities of pitch, tar, and oil out of a sort of stone." Although oil shales are found in many countries, the United States has the world's largest deposits.

Classification

The petroleum industry generally classifies crude oil by the geographic location it is produced in (e.g. West Texas Intermediate , Brent oilfield|Brent , or Oman ), its API gravity (an oil industry measure of density), and its sulfur content. Crude oil may be considered Light crude oil|light if it has low density or Heavy crude oil|heavy if it has high density; and it may be referred to as sweet crude oil|sweet if it contains relatively little sulfur or sour crude oil|sour if it contains substantial amounts of sulfur.

The geographic location is important because it affects transportation costs to the refinery. Light crude oil is more desirable than heavy oil since it produces a higher yield of petrol, while sweet oil commands a higher price than sour oil because it has fewer environmental problems and requires less refining to meet sulfur standards imposed on fuels in consuming countries. Each crude oil has unique molecular characteristics which are understood by the use of Crude oil assay|crude oil assay analysis in petroleum laboratories.

barrel (unit)|Barrel s from an area in which the crude oil's molecular characteristics have been determined and the oil has been classified are used as pricing Benchmark (crude oil)|references throughout the world. Some of the common reference crudes are:

West Texas Intermediate (WTI), a very high-quality, sweet, light oil delivered at Cushing, Oklahoma for North American oil

Brent Crude|Brent Blend , comprising 15 oils from fields in the Brent oilfield|Brent and Ninian systems in the East Shetland Basin of the North Sea . The oil is landed at Sullom Voe terminal in Shetland . Oil production from Europe, Africa and Middle Eastern oil flowing West tends to be priced off this oil, which forms a Benchmark (crude oil)|benchmark

Dubai Crude|Dubai-Oman , used as benchmark for Middle East sour crude oil flowing to the Asia-Pacific region

Tapis crude|Tapis (from Malaysia , used as a reference for light Far East oil)

Minas (from Indonesia , used as a reference for heavy Far East oil)

The OPEC Reference Basket , a weighted average of oil blends from various OPEC (The Organization of the Petroleum Exporting Countries) countries

Midway-Sunset Oil Field|Midway Sunset Heavy, by which heavy oil in California is priced

There are declining amounts of these benchmark oils being produced each year, so other oils are more commonly what is actually delivered. While the reference price may be for West Texas Intermediate delivered at Cushing, the actual oil being traded may be a discounted Canadian heavy oil delivered at Hardisty, Alberta , and for a Brent Blend delivered at Shetland, it may be a Russian Export Blend delivered at the port of Primorsk, Leningrad Oblast|Primorsk .

Petroleum industry

The petroleum industry is involved in the global processes of Hydrocarbon exploration|exploration , Extraction of petroleum|extraction , Oil refinery|refining , Petroleum transport|transporting (often with oil tanker s and Pipeline transport|pipelines ), and marketing petroleum products. The largest volume products of the industry are fuel oil and petrol. Petroleum is also the raw material for many Petrochemical|chemical products , including pharmaceuticals, solvents, fertilizers, pesticides, and plastics. The industry is usually divided into three major components: Upstream (oil industry)|upstream , midstream and Downstream (oil industry)|downstream . Midstream operations are usually included in the downstream category.

Petroleum is vital to many industries, and is of importance to the maintenance of industrialized civilization itself, and thus is critical concern to many nations. Oil accounts for a large percentage of the world's energy consumption, ranging from a low of 32% for Europe and Asia, up to a high of 53% for the Middle East. Other geographic regions' consumption patterns are as follows: South and Central America (44%), Africa (41%), and North America (40%). The world at large consumes 30 billion Barrel (unit)|barrels (4.8& nbsp;km³) of oil per year, and the top oil consumers largely consist of developed nations. In fact, 24% of the oil consumed in 2004 went to the United States alone, though by 2007 this had dropped to 21% of world oil consumed.

In the US, in the states of Arizona , California, Hawaii, Nevada , Oregon and Washington (U.S. state)|Washington , the Western States Petroleum Association (WSPA) represents companies responsible for producing, distributing, refining, transporting and marketing petroleum. This non-profit trade association was founded in 1907, and is the oldest petroleum trade association in the United States.

History

Petroleum, in one form or another, has been used since ancient times, and is now important across society, including in economy, politics and technology. The rise in importance was mostly due to the invention of the internal combustion engine , the rise in commercial aviation and the increasing use of plastic and pesticides.

More than 4000 years ago, according to Herodotus and Diodorus Siculus , asphalt was used in the construction of the walls and towers of Babylon ; there were oil pits near Ardericca (near Babylon), and a pitch spring on Zacynthus . Great quantities of it were found on the banks of the river Issus (river)|Issus , one of the tributaries of the Euphrates . Ancient Persian Empire|Persian tablets indicate the medicinal and lighting uses of petroleum in the upper levels of their society. By 347 AD, oil was produced from bamboo-drilled wells in China.George E. Totten

In the 1840s, the process to distill kerosene from petroleum was invented by James Young (Scottish chemist)|James Young in Scotland and the first refinery was built by Ignacy Lukasiewicz , providing a cheaper alternative to whale oil . The demand for the petroleum as a fuel for lighting in North America and around the world quickly grew.Maugeri (2006), p. 3 The question of what constituted the first commercial oil well is a difficult one to answer. Edwin Drake 's 1859 well near Titusville, Pennsylvania, is popularly considered the first modern well. Drake's well is probably singled out because it was drilled, not dug; because it used a steam engine; because there was a company associated with it; and because it touched off a major boom. Vassiliou, M. S. (2009). Historical Dictionary of the Petroleum Industry. Lanham, MD: Scarecrow Press (Rowman & Littlefield), 700pp However, there was considerable activity before Drake in various parts of the world in the mid-19th century. A group directed by Major Alexeyev of the Bakinskii Corps of Mining Engineers hand-drilled a well in the Baku region in 1848.Matveichuk, Alexander A. Intersection of Oil Parallels: Historical Essays. Moscow: Russian Oil and Gas Institute, 2004. There were engine-drilled wells in West Virginia in the same year as Drake's well.McKain, David L., and Bernard L. Allen. Where It All Began: The Story of the People and Places Where the Oil Industry Began—West Virginia and South- eastern Ohio. Parkersburg, W.Va.: David L. McKain, 1994. An early commercial well was hand dug in Poland in 1853, and another in nearby Romania in 1857. At around the same time the world's first, but small, oil refineries were opened at Jaslo , in Poland, with a larger one being opened at Ploie?ti , in Romania, shortly after. Romania is the first country in the world to have its crude oil output officially recorded in international statistics, namely 275 tonnes. By the end of the 19th century the Russian Empire, particularly the Branobel company in Azerbaijan , had taken the lead in production.Akiner(2004), p. 5

Access to oil was and still is a major factor in several military conflicts of the twentieth century, including World War II, during which oil facilities were a major strategic asset and were Oil Campaign chronology of World War II|extensively bombed .Hanson Baldwin, 1959, , American Petroleum Institute Quarterly – Centennial Issue , pages 10–11. American Petroleum Institute. Operation Barbarossa included the goal to capture the Case Blue|Baku oilfields , as it would provide much needed oil-supplies for the German military which was suffering from blockades. Oil exploration in North America during the early 20th century later led to the U.S. becoming the leading producer by the mid 1900s. As petroleum production in the U.S. peaked during the 1960s, however, the United States was surpassed by Saudi Arabia and Russia.

Today, about 90% of vehicular fuel needs are met by oil. Petroleum also makes up 40% of total energy consumption in the United States, but is responsible for only 1% of electricity generation. Petroleum's worth as a portable, dense energy source powering the vast majority of vehicles and as the base of many industrial chemicals makes it one of the world's most important commodity|commodities . Viability of the oil commodity is controlled by several key parameters, number of vehicles in the world competing for fuel, quantity of oil exported to the world market ( Export Land Model ), Net Energy Gain (economically useful energy provided minus energy consumed), political stability of oil exporting nations and ability to defend oil supply lines.

The top three oil producing countries are Saudi Arabia , Russia, and the United States. About 80% of the world's readily accessible reserves are located in the Middle East, with 62.5% coming from the Arab 5: Saudi Arabia , UAE , Iraq, Qatar and Kuwait . A large portion of the world's total oil exists as unconventional sources, such as bitumen in Athabasca oil sands|Canada and oil shale in Orinoco Belt|Venezuela . While significant volumes of oil are extracted from oil sands, particularly in Canada, logistical and technical hurdles remain, as oil extraction requires large amounts of heat and water, making its net energy content quite low relative to conventional crude oil. Thus, Canada's oil sands are not expected to provide more than a few million barrels per day in the foreseeable future.

Conventional crude oil production, those having Net Energy Gain above 10 stopped growing in 2005 at about . The International Energy Agency 's (IEA) 2010 World Energy Outlook estimated that conventional crude oil production has peaked and is depleting at 6.8% per year. US Joint Forces Command 's Joint Operating Environment 2010 issued this warning to all US military commands "By 2012, surplus oil production capacity could entirely disappear, and as early as 2015, the shortfall in output could reach nearly 10 million barrels per day."

Price

After the collapse of the OPEC-administered pricing system in 1985, and a short lived experiment with netback pricing, oil-exporting countries adopted a market-linked pricing mechanism.Mabro (2006), p. 351. First adopted by PEMEX in 1986, market-linked pricing was widely accepted, and by 1988 became and still is the main method for pricing crude oil in international trade. The current reference, or pricing markers, are Brent Crude|Brent , West Texas Intermediate|WTI , and Dubai Crude|Dubai/Oman .

Uses

The chemical structure of petroleum is Heterogeneity|heterogeneous , composed of hydrocarbon chains of different lengths. Because of this, petroleum may be taken to oil refinery|oil refineries and the hydrocarbon chemicals separated by distillation and treated by other chemical process es, to be used for a variety of purposes. See Petroleum product s.

Fuels

The most common Petroleum distillation|distillation fractions of petroleum are fuel s.
Fuels include (by increasing boiling temperature range):Speight (1999), p. 543.

Fraction !! Boiling Range ^oC
Liquefied petroleum gas (LPG)
Butane
Petrol
Jet fuel
Kerosene
Fuel oil
Diesel fuel

Other derivatives

Certain types of resultant hydrocarbons may be mixed with other non-hydrocarbons, to create other end products:

Alkenes (olefins) which can be manufactured into plastics or other compounds

Lubricant s (produces light machine oils, motor oil s, and Grease (lubricant)|grease s, adding viscosity stabilizers as required).

Wax , used in the packaging of frozen food s, among others.

Sulfur or Sulfuric acid . These are a useful industrial materials. Sulfuric acid is usually prepared as the acid precursor oleum , a byproduct of Hydrodesulfurization|sulfur removal from fuels.

Bulk tar .

Asphalt

Petroleum coke , used in speciality carbon products or as solid fuel.

Paraffin wax

Aromatic petrochemical s to be used as precursors in other chemical production.

Agriculture

Since the 1940s, agricultural productivity has increased dramatically, due largely to the increased use of energy-intensive mechanization , fertilizer s and pesticide s. Nearly all pesticides and many fertilizers are made from oil."". The Independent . June 14, 2007.

Petroleum by country

Consumption statistics

Consumption

According to the CIA World Factbook estimate for 2010 the world consumes about 87 million barrels of oil each day.

This table orders the amount of petroleum consumed in 2008 in thousand Barrel (unit)|barrels (1000 bbl) per day and in thousand cubic metres (1000 m³) per day:U.S. Energy Information Administration. from web page. Table Posted: March 1, 2010From DSW-Datareport 2008 ("Deutsche Stiftung Weltbevölkerung")One cubic metre of oil is equivalent to 6.28981077 barrels of oil

Consuming Nation 2008	(1000 bbl/ day)	(1000 m^{3/ day)}	population in millions	bbl/ year per capita	m^{3/ year per capita}
rh>United States ¹	convert>#expr:(365*19497.95/ 314658)round1
rh> People's Republic of China	convert>#expr:(365*7831.00/ 1345750)round1
rh>Japan ²	convert>#expr:(365*4784.85/ 127156)round1
rh> India ²	convert>#expr:(365*2962.00/ 1198003)round1
rh> Russia ¹	convert>#expr:(365*2916.00/ 140873)round1
rh>Germany ²	convert>#expr:(365*2569.28/ 82166)round1
rh> Brazil	convert>#expr:(365*2485.00/ 193733)round1
rh> Saudi Arabia ( OPEC )	convert>#expr:(365*2376.00/ 25720)round1
rh>Canada	convert>#expr:(365*2261.36/ 33573)round1
rh> South Korea ²	convert>#expr:(365*2174.91/ 48332)round1
rh> Mexico ¹	convert>#expr:(365*2128.46/ 109610)round1
rh>France ²	convert>#expr:(365*1986.26/ 62342)round1
rh> Iran ( OPEC )	convert>#expr:(365*1741.00/ 74195)round1
rh>United Kingdom ¹	convert>#expr:(365*1709.66/ 61565)round1
rh> Italy ²	convert>#expr:(365*1639.01/ 59870)round1

Source:
Population Data:

¹ Peak oil|peak production of oil already passed in this state

² This country is not a major oil producer

Production

In petroleum industry parlance, production refers to the quantity of crude extracted from reserves, not the literal creation of the product.

#	Producing Nation	10^{3bbl/ d (2006)}	10^{3bbl/ d (2007)}	10^{3bbl/ d (2008)}	10^{3bbl/ d (2009)}	Present Share
1	rh> Saudi Arabia (OPEC)	10,665	10,234	10,782	9,760	11.8%
2	rh> Russia ¹	9,677	9,876	9,789	9,934	12.0%
3	rh>United States ¹	8,331	8,481	8,514	9,141	11.1%
4	rh> Iran (OPEC)	4,148	4,043	4,174	4,177	5.1%
5	rh> People's Republic of China	3,846	3,901	3,973	3,996	4.8%
6	rh>Canada ²	3,288	3,358	3,350	3,294	4.0%
7	rh> Mexico ¹	3,707	3,501	3,185	3,001	3.6%
8	rh> United Arab Emirates (OPEC)	2,945	2,948	3,046	2,795	3.4%
9	rh> Kuwait (OPEC)	2,675	2,613	2,742	2,496	3.0%
10	rh> Venezuela (OPEC) ¹	2,803	2,667	2,643	2,471	3.0%
11	rh> Norway ¹	2,786	2,565	2,466	2,350	2.8%
12	rh> Brazil	2,166	2,279	2,401	2,577	3.1%
13	rh> Iraq (OPEC) ³	2,008	2,094	2,385	2,400	2.9%
14	rh> Algeria (OPEC)	2,122	2,173	2,179	2,126	2.6%
15	rh> Nigeria (OPEC)	2,443	2,352	2,169	2,211	2.7%
16	rh> Angola (OPEC)	1,435	1,769	2,014	1,948	2.4%
17	rh> Libya (OPEC)	1,809	1,845	1,875	1,789	2.2%
18	rh>United Kingdom	1,689	1,690	1,584	1,422	1.7%
19	rh> Kazakhstan	1,388	1,445	1,429	1,540	1.9%
20	rh> Qatar (OPEC)	1,141	1,136	1,207	1,213	1.5%
21	rh> Indonesia	1,102	1,044	1,051	1,023	1.2%
22	rh> India	854	881	884	877	1.1%
23	rh> Azerbaijan	648	850	875	1,012	1.2%
24	rh> Argentina	802	791	792	794	1.0%
25	rh> Oman	743	714	761	816	1.0%
26	rh> Malaysia	729	703	727	693	0.8%
27	rh> Egypt	667	664	631	678	0.8%
28	rh> Colombia	544	543	601	686	0.8%
29	rh> Australia	552	595	586	588	0.7%
30	rh> Ecuador (OPEC)	536	512	505	485	0.6%
31	rh> Sudan	380	466	480	486	0.6%
32	rh> Syria	449	446	426	400	0.5%
33	rh> Equatorial Guinea	386	400	359	346	0.4%
34	rh> Thailand	334	349	361	339	0.4%
35	rh> Vietnam	362	352	314	346	0.4%
36	rh> Yemen	377	361	300	287	0.3%
37	rh> Denmark	344	314	289	262	0.3%
38	rh> Gabon	237	244	248	242	0.3%
39	rh>South Africa	204	199	195	192	0.2%
40	rh> Turkmenistan	No data	180	189	198	0.2%

Source:
¹ Peak production of conventional oil already passed in this state

² Although Canadian conventional oil production is declining, total oil production is increasing as oil sands production grows. If oil sands are included, it has the world's second largest oil reserves after Saudi Arabia.

³ Though still a member, Iraq has not been included in production figures since 1998

Export

In order of net exports in 2009 and 2006 in thousand Barrel (unit)|bbl / Day|d and thousand m³/d:

#	Exporting Nation	10^{3bbl/ d (2009)}	10^{3m^{3/ d (2009)}}	10^{3bbl/ d (2006)}	10^{3m^{3/ d (2006)}}
1	rh> Saudi Arabia ( OPEC )	7,322	1,164	8,651	1,376
2	rh> Russia ¹	7,194	1,144	6,565	1,044
3	rh> Iran (OPEC)	2,486	395	2,519	401
4	rh> United Arab Emirates (OPEC)	2,303	366	2,515	400
5	rh> Norway ¹	2,132	339	2,542	404
6	rh> Kuwait (OPEC)	2,124	338	2,150	342
7	rh> Nigeria (OPEC)	1,939	308	2,146	341
8	rh> Angola (OPEC)	1,878	299	1,363	217
9	rh> Algeria (OPEC) ¹	1,767	281	1,847	297
10	rh> Iraq (OPEC)	1,764	280	1,438	229
11	rh> Venezuela (OPEC) ¹	1,748	278	2,203	350
12	rh> Libya (OPEC) ¹	1,525	242	1,525	242
13	rh> Kazakhstan	1,299	207	1,114	177
14	rh>Canada ²	1,168	187	1,071	170
15	rh> Qatar (OPEC)	1,066	169	–	–
–	rh> Mexico ¹	1,039	165	1,676	266

Source:
¹ Peak oil|peak production already passed in this state

² Canadian statistics are complicated by the fact it is both an importer and exporter of crude oil, and refines large amounts of oil for the U.S. market. It is the leading source of U.S. imports of oil and products, averaging in August 2007.
.
Total world production/consumption (as of 2005) is approximately .

Import

In order of net imports in 2009 and 2006 in thousand Barrel (unit)|bbl / Day|d and thousand m³/d:

#	Importing Nation	10^{3bbl/ day (2009)}	10^{3m^{3/ day (2009)}}	10^{3bbl/ day (2006)}	10^{3m^{3/ day (2006)}}
1	rh>United States ¹	9,631	1,531	12,220	1,943
2	rh>China ²	4,328	688	3,438	547
3	rh>Japan	4,235	673	5,097	810
4	rh>Germany	2,323	369	2,483	395
5	rh>India	2,233	355	1,687	268
6	rh>South Korea	2,139	340	2,150	342
7	rh>France	1,749	278	1,893	301
8	rh>United Kingdom	1,588	252	–	–
9	rh>Spain	1,439	229	1,555	247
10	rh>Italy	1,381	220	1,558	248
11	rh>Netherlands	973	155	936	149
12	rh>Republic of China (Taiwan)	944	150	942	150
13	rh>Singapore	916	146	787	125
14	rh>Turkey	650	103	576	92
15	rh>Belgium	597	95	546	87
–	rh>Thailand	538	86	606	96

Source:
¹ Peak oil|peak production of oil already passed in this state
² Major oil producer whose production is still increasing

Import by country 2010

Non-producing consumers

Countries whose oil production is 10% or less of their consumption.

#	Consuming Nation	(bbl/ day)	(m³/ day)
1	rh>Japan	5,578,000	886,831
2	rh>Germany	2,677,000	425,609
3	rh>South Korea	2,061,000	327,673
4	rh>France	2,060,000	327,514
5	rh>Italy	1,874,000	297,942
6	rh>Spain	1,537,000	244,363
7	rh>Netherlands	946,700	150,513
8	rh>Turkey	575,011	91,663

Source:

Environmental effects

Because petroleum is a naturally occurring substance, its presence in the environment need not be the result of human causes such as accidents and routine activities ( seismology|seismic exploration, Boring (earth)|drilling , extraction, refining and combustion). Phenomena such as petroleum seep|seeps http://seeps.wr.usgs.gov/ Natural Oil and Gas Seeps in California and tar pit s are examples of areas that petroleum affects without man's involvement. Regardless of source, petroleum's effects when released into the environment are similar.

Global warming

When burned, petroleum releases carbon dioxide; a greenhouse gas . Along with the burning of coal, petroleum combustion is the largest contributor to the increase in atmospheric CO₂. Atmospheric CO₂ has risen steadily since the industrial revolution to current levels of over 380ppmv, from the Carbon dioxide in Earth's atmosphere#Past variation|180 – 300ppmv of the prior 800 thousand years , driving global warming .. (June 2007). In UNEP/GRID-Arendal Maps and Graphics Library. Retrieved 19:14, February 19, 2011.. Retrieved 19:14, February 19, 2011.Mitchell, John F. B. (1989). "THE "GREENHOUSE" EFFECT AND CLIMATE CHANGE". Reviews of Geophysics (American Geophysical Union) 27 (1): 115–139. . http://astrosun2.astro.cornell.edu/academics/courses/astro202/Mitchell_GRL89.pdf. Retrieved February 19, 2011. The unbridled use of petroleum could potentially cause a runaway greenhouse effect on Earth.

Extraction

Oil extraction is simply the removal of oil from the reservoir (oil pool). Oil is often recovered as a water-in-oil emulsion, and specialty chemicals called demulsifiers are used to separate the oil from water. Oil extraction is costly and sometimes environmentally damaging, although John Hunt (oceanographer)|Dr. John Hunt of the Woods Hole Oceanographic Institution pointed out in a 1981 paper that over 70% of the reserves in the world are associated with visible seep|macroseepage s, and many oil fields are found due to natural seep s. Offshore exploration and extraction of oil disturbs the surrounding marine environment. by Stanislave Patin, tr. Elena Cascio

Oil spills

Crude oil and refined fuel Oil spill|spills from tanker (ship)|tanker ship accidents have damaged natural ecosystem s in Alaska , the Gulf of Mexico , the Galapagos Islands , France and many List of oil spills|other places .

The quantity of oil spilled during accidents has ranged from a few hundred tons to several hundred thousand tons (e.g., Bp oil spill|Deepwater Horizon Oil Spill , Atlantic Empress , Amoco Cadiz ). Smaller spills have already proven to have a great impact on ecosystems, such as the Exxon Valdez oil spill

Oil spills at sea are generally much more damaging than those on land, since they can spread for hundreds of nautical miles in a thin oil slick which can cover beaches with a thin coating of oil. This can kill sea birds, mammals, shellfish and other organisms it coats. Oil spills on land are more readily containable if a makeshift earth dam can be rapidly bulldozed around the spill site before most of the oil escapes, and land animals can avoid the oil more easily.

Control of oil spills is difficult, requires ad hoc methods, and often a large amount of manpower. The dropping of bombs and incendiary devices from aircraft on the Torrey Canyon wreck produced poor results; Torrey Canyon#Accident|Torrey Canyon bombing by the Navy and RAF modern techniques would include pumping the oil from the wreck, like in the Prestige oil spill or the Erika (tanker)|Erika oil spill.

Though crude oil is predominantly composed of various hydrocarbons, certain nitrogen heterocylic compounds, such as pyridine , picoline , and quinoline are reported as contaminants associated with crude oil, as well as facilities processing oil shale or coal, and have also been found at legacy wood treatment sites. These compounds have a very high water solubility, and thus tend to dissolve and move with water. Certain naturally occurring bacteria, such as Micrococcus , Arthrobacter , and Rhodococcus and have been shown to degrade these contaminants.Sims, G. K. and E.J. O'Loughlin. 1989. Degradation of pyridines in the environment. CRC Critical Reviews in Environmental Control. 19(4): 309–340.

Degradation of underground tanks located at gas stations may also occur, significantly affecting soil and groundwater. In these instances of the biological degradation of petroleum hydrocarbons, solutions such as bioremediation may be used.

Tarballs

A tarball is a blob of crude oil|oil (not to be confused with tar , which is typically derived from pine trees rather than petroleum) which has been weathered after floating in the ocean. Tarballs are an aquatic pollutant in most environments, although they can occur naturally, for example, in the Santa Barbara Channel of California.A. Y. Itah and J. P. Essien, Growth Profile and Hydrocarbonoclastic Potential of Microorganisms Isolated from Tarballs in the Bight of Bonny, Nigeria, World Journal of Microbiology and Biotechnology , Volume 21, Numbers 6–7, October, 2005, , p 1317-1322Frances D. Hostettler, Robert J. Rosenbauer, Thomas D. Lorenson, Jennifer Dougherty, Geochemical characterization of tarballs on beaches along the California coast. Part I-- Shallow seepage impacting the Santa Barbara Channel Islands, Santa Cruz, Santa Rosa and San Miguel, Organic Geochemistry, Volume 35, Issue 6, June 2004, Pages 725–746, ISSN 0146-6380, . Their concentration and features have been used to assess the extent of oil spills . Their composition can be used to identify their sources of origin,Anthony H Knap, Kathryn A Burns, Rodger Dawson, Manfred Ehrhardt and Karsten H Palmork, Dissolved/dispersed hydrocarbons, tarballs and the surface microlayer: Experiences from an IOC/UNEP Workshop in Bermuda, December, 1984, Marine Pollution Bulletin , Volume 17, Issue 7, July 1986, Pages 313–319. Zhendi Wang, Merv Fingas, Michael Landriault, Lise Sigouin, Bill Castle, David Hostetter, Dachung Zhang, Brad Spencer, Identification and Linkage of Tarballs from the Coasts of Vancouver Island and Northern California Using GC/MS and Isotopic Techniques, Journal of High Resolution Chromatography , Volume 21 Issue 7, Pages 383–395, and tarballs themselves may be dispersed over long distances by deep sea currents. They are slowly decomposed by bacteria, including Chromobacterium violaceum , Cladosporium resinae , Bacillus submarinus , Micrococcus varians , Pseudomonas aeruginosa , Candida marina and Saccharomyces estuari .

Whales

James S. Robbins has argued that the advent of petroleum-refined kerosene saved some species of great whales from extinction by providing an inexpensive substitute for whale oil, thus eliminating the economic imperative for open-boat whaling . by James S. Robbins, The Freeman , August, 1992.

Alternatives to petroleum

In the United States in 2007 about 70% of petroleum was used for transportation (e.g. petrol, diesel, jet fuel), 24% by industry (e.g. production of plastics), 5% for residential and commercial uses, and 2% for electricity production.. Energy Information Administration Outside of the US, a higher proportion of petroleum tends to be used for electricity. UN Energy Program

Alternatives to petroleum-based vehicle fuels

Alternative fuel vehicle s refers to both:

vehicles that use alternative fuel s used in standard or modified internal combustion engine s such as natural gas vehicle s, neat ethanol vehicle s, flexible-fuel vehicle s, biodiesel -powered vehicles, and Hydrogen internal combustion engine vehicle|hydrogen vehicle s.

vehicles with advanced propulsion systems that reduce or substitute petroleum use such as battery electric vehicle s, plug-in hybrid electric vehicle s, hybrid electric vehicle s, and hydrogen vehicle|hydrogen fuel cell vehicle s.

Alternatives to using oil in industry

Biological feedstocks do exist for industrial uses such as Bioplastic production. Seattle Times (2003)

Alternatives to burning petroleum for electricity

In oil producing countries with little refinery capacity, oil is sometimes burned to produce electricity. Renewable energy technologies such as solar power , wind power , micro hydro , biomass and biofuels might someday be used to replace some of these generators, but today the primary alternatives remain large scale hydroelectricity , nuclear power|nuclear and coal-fired generation.

Future of petroleum production

Consumption in the twentieth and twenty-first centuries has been abundantly pushed by automobile growth; the 1980s oil glut|1985–2003 oil glut even fuelled the sales of low economy vehicles in OECD countries. In 2008, the economic crisis seems to have some impact on the sales of such vehicles; still, the 2008 oil consumption shows a small increase. The BRIC countries might also kick in, as China briefly was the first automobile market in December 2009.
The immediate outlook still hints upwards.
In the long term, uncertainties linger; the OPEC believes that the OECD countries will push low consumption policies at some point in the future; when that happens, it will definitely curb oil sales, and both OPEC and Energy Information Administration|EIA kept lowering their 2020 consumption estimates during the past 5 years.
Oil products are more and more in competition with alternative sources, mainly coal and natural gas, both cheaper sources.
Production will also face an increasingly complex situation; while OPEC countries still have large reserves at low production prices, newly found reservoirs often lead to higher prices; offshore giants such as Tupi oil field|Tupi , Guara and Tiber oilfield|Tiber demand high investments and ever-increasing technological abilities. Subsalt reservoirs such as Tupi were unknown in the twentieth century, mainly because the industry was unable to probe them. Enhanced Oil Recovery (EOR) techniques (example: Daqing Field|DaQing , China
) will continue to play a major role in increasing the world's recoverable oil.

Peak oil

Peak Oil is the scientific projection that future petroleum production (whether for individual oil wells, entire oil fields, whole countries, or worldwide production) will eventually peak and then decline at a similar rate to the rate of increase before the peak as these reserves are exhausted. The peak of oil discoveries was in 1965, and oil production per year has surpassed oil discoveries every year since 1980.

Hubbert applied his theory to accurately predict the peak of U.S. oil production at a date between 1966 and 1970. This prediction was based on data available at the time of his publication in 1956. In the same paper, Hubbert predicts world peak oil in "half a century" after his publication, which would be 2006.

It is difficult to predict the peak oil|oil peak in any given region, due to the lack of knowledge and/or transparency in accounting of global oil reserves. The scientist and researchers from Oxford University argue that official figures are inflated because OPEC members over-reported reserves in the 1980s when competing for global market share."". Telegraph. March 22, 2010. Based on available production data, proponents have previously predicted the peak for the world to be in years 1989, 1995, or 1995–2000. Some of these predictions date from before the recession of the early 1980s, and the consequent reduction in global consumption, the effect of which was to delay the date of any peak by several years. Just as the 1971 U.S. peak in oil production was only clearly recognized after the fact, a peak in world production will be difficult to discern until production clearly drops off.
The International Energy Agency (IEA) says production of conventional crude oil peaked in 2006."". The New York Times . November 14, 2010"". National Geographic News . November 9, 2010 Since virtually all economic sectors rely heavily on petroleum, peak oil could lead to a "partial or complete failure of markets.""". Der Spiegel|Spiegel Online . September 1, 2010.

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