Obtained naturally from beneath the surface of the earth, crude oil or petroleum is an inflammable liquid that is collected beneath the seas in the form of oil reservoirs through years of plant and animal decomposition as well as deposition of layers of silt and mud materials. From time immemorial, crude oil has been put to several uses and today, Oil accounts for a major portion of the world's energy consumption.
History If we were to trace the history of oil and gas, we would have to look way back to historical references of oil usage in Persia, Egypt and Mesopotamia. During the 8th century, tar (which is derived from petroleum) was being used for paving roads. By the 9th and 10th century, the discovery and exploration of oil reserves became eminent. Drilling below the sea beds for crude oil paved the path for the entrance and the rise in importance of the oil and gas industry in the overall world economy. The discovery and use of oil & gas by the 20th century led to an increase in the demand for commodities such as petroleum, now heavily traded among nations. In the UK, it is the Department of Trade and Industry that regulates the activities and development of the oil and gas industry.
Majors Players A number of entities together constitute the oil and gas industry.
1) Those involved in the exploration, overall development and production of natural gas or crude oil.
2) Those taking care of the transportation, retailing, and end users.
3) Other contracted drilling agencies and service companies. Some of the major Oil Companies operating in the world market today include BP, Shell, Chevron, ExxonMobil (Esso), ConocoPhillips, and Total S.A.
Oil Usage Developed countries use the maximum amount of oil and there is a growing demand for oil and natural gas by most developing countries as well. Though it is difficult to give an exact estimate, it has been stated that the world consumes over 30 billion barrels of oil per year. Oil Production Some of the biggest producers of oil in the world include
Russia Saudi Arabia USA Iran China
There has been a continuous rise in demand for oil and gas throughout the world leading to a rise in its prices. This was inevitable since petroleum is a non renewable resource and it is hard to match supplies with such a drastic increase in its demand year after year. Moreover, there are signs of negative effects on sea life as well as the overall environment through discharge of chemicals.
What Lies Ahead? Industry experts predict that in the future, such increasing demands on the supply reserves of oil will eventually lead to a decline in the overall global oil production as well as sky rocketing oil prices.
It is high time that the nation looks towards alternative sources of energy such as wave and tidal power, wind power, solar power and bio fuels to reduce such frightening pressures on oil and gas in the world.
About the Author
David Pritchard is webmaster for www.crest-enviro.com
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