Oil Industry
Oil industry dates back 5000 years ago. It started in the Middle East. Then oil was used in waterproofing boats and baskets, lighting and even for medication. Oil was first exploited in Dacia, then a Roman province and it was known as Picula. The first oil well structures were built in the Gulf of Mexico. These wells were built in water depth of 100 meters. Today, oil has become one of the richest commodities in the world as the demand for oil is far higher than the supply.
The Oil industry, as a whole, means global processes of exploration, extraction, refining, transporting as well as marketing it. Fuel oil and gasoline (petrol) are mainly marketed by the oil industry. This industry is basically segregated into three components: upstream, midstream and downstream.
The oil industry is ruled by the OPEC, Organization of the Petroleum Exporting Countries, which consists of thirteen countries. These countries are
- Algeria
- Angola
- Ecuador
- Indonesia
- Iran
- Iraq
- Kuwait
- Libya
- Nigeria
- Qatar
- Saudi Arabia
- UAE
- Venezuela
The main objective of OPEC is to coordinate and join the petroleum policies of member countries and stabilize the oil markets to provide an effective, economical and regular oil supply to consumers. Every year, OPEC ministers meet twice to review the current scenario of international oil market and the forecast for the future to ensure adequate actions to stabilize the oil market.
OPEC is not only confining to oil market but also hold meeting on various interests. The member country’s petroleum and economic experts meet and address various issues like environmental affairs, global market scenario and other topics. OPEC has a strong influence on global market, and it often happens that the prediction of many members of OPEC has been negatively criticized by global market. Sometimes prediction of OPEC members alarm the world and triggers high inflation across the world.
The consumption of oil of the world and few countries are as shown below:
| Country | Per capita energy consumption, oil equivalent (barrel/ person/ year) |
|---|---|
| DRC | 0.13 |
| Ethiopia | 0.37 |
| Bangladesh | 0.57 |
| Myanmar | 0.37 |
| Pakistan | 1.95 |
| World | 12.55 |
The production ratio of oil is as mentioned below:
| Producing Nation | 103bbl/d (2006) | 103bbl/d (2007) |
|---|---|---|
| Saudi Arabia (OPEC) | 10,665 | 10,234 |
| Russia | 9,677 | 9,876 |
| United States | 8,331 | 8,481 |
| Iran (OPEC) | 4,148 | 4,043 |
| China | 3,845 | 3,901 |
| United Arab Emirates (OPEC) | 2,945 | 2,948 |