Petrol Industry Oil is the most commonly used fossil fuel with coal. The formation of fossil fuels took about 200 million years, but coa...
Petrol Industry
Oil is the most commonly used fossil fuel with coal. The formation of fossil fuels took about 200 million years, but coal has been used for the last 1000 years and oil has been used for the last 150 years, and the rapid depletion of fossil fuels, which are considered as non-renewable sources of energy, are pushing people into renewable energy sources.Oil is a hydrocarbon carbon and a compound consisting of hydrogen, by adding some other substances such as sulfur to its natural form and called crude oil, can be light, green or black. It can also be as thin as gasoline or as thick as tar.
Petroleum Resources and Major Petroleum Reserve Countries
Texas, which was once the main oil region in the world, almost completely dried up over the last 150 years. Popular and richest oil fields of the last 100 years in the Middle East; Oil producers leading Saudi Arabia, Kuwait, Iran, Iraq.
For the last 20 years, Russia has attracted attention with its oil and natural gas resources and increased production. Russia's foreign trade is more than 80%, based on oil and gas exports.
South America, Venezuela, Africa, Libya and Nigeria are other countries with rich oil deposits.
Brief History of Oil
In 1859 Edwin Drake drilled the first known oil well in Pennsylvania. Since then, the number of oil production has increased exponentially.Initially, the primary use of oil was gas oil. Once distilled, the crude oil was turned into kerosene and used as fuel for gas lamps. In 1882, Edison opened the world's first power generation facility, and as electricity became more widespread over the years, demand for kerosene began to decline.
The automobile industry grew in a short time with the introduction of Henry Ford's production lines, the production lines increased the supply, the more the number of production the cars became cheaper and the more it became cheaper. There was a demand boom with the increase in gasoline and diesel transportation vehicles produced from petroleum.
The First World War was the true catalyst for oil production; more oil was produced during the war than previously produced. In modern times, oil is seen as a valuable commodity that is traded around the world, such as gold and diamonds.
Most people believe that oil is often used to feed internal combustion engines in the form of gasoline. Although our automobiles and other means of transportation consume high amounts of oil, oil and by-products are used for applications in a wide range of areas.
There is a limited source of oil in the world, and the current estimates suggest that oil resources will be completely exhausted in 50 years.
Oil Industry
The structure and functioning of the oil industry is very complex. The most important reason for this is that oil supply is controlled by state institutions worldwide, whereas sales in countries are carried out by multinational private companies.In fact, more than half of the total world oil reserves are controlled by state institutions in the Middle East. Oil importers are the state institutions of other states and also international oil companies on the opposite front.
To better analyze the somewhat complex and intertwined operations of these major industry players, the oil industry can be divided into two main categories: National Oil Companies (NOC) and International Oil Companies (IOC).
International Petroleum Companies
International Oil Companies include familiar names such as BP and Shell. These are publicly traded companies, such as any other company, except where the subject product is oil. It is seen that the IOCs, which are at the top of the global scale, were generally established towards the end of the 19th century.
SuperMajor Oil Companies
The world's six largest open oil company ”“ is called Supermajor companies. As a result of various mergers and acquisitions, these companies have achieved considerable power in the world oil market after the 1990s. As a group, supermajors control 6% of the world's oil. NOCs control 88% of the world's oil.Supermajor Oil Company and Capacity Information
Company Name
|
Company Base
|
Annual Income (billion USD)
|
Reserve Size (billion USD)
|
ExxonMobil
|
Texas - USA
|
383
|
72
|
Royal Dutch Shell
|
The Hague - Netherlands
|
368
|
20
|
BP / Amoco
|
London, United Kingdom
|
308
|
18
|
Total SA
|
Paris, France
|
229
|
10.5
|
ConocoPhillips
|
California - USA
|
204
|
10.5
|
ConocoPhillips
|
Texas - USA
|
198
|
8.3
|
Firms may obtain different revenues depending on where they are in the industry and where they are in the raw or processed, extraction or transportation or final sale points of the oil.
The oil industry is grouped according to functions such as oil exploration, extraction, transportation, processing and sales. Some companies operate in all these areas, while some others do not operate outside of a few areas.
Petroleum Sector segments
Category
|
Function
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Upstream
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Crude oil exploration and production activities
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Downstream
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Activities such as post-production transportation refining storage and distribution
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Boru hattı
|
Transportation of petroleum, liquid CO2 with natural gas and pipelines
|
Deniz Taşımacılığı
|
Transportation of petroleum and petroleum products by sea
|
Servis ve Tedarik
|
Equipment manufacturers, service and consulting firms
|
Since these manufacturers have been in the oil industry for many years, they have the expertise to find and develop crude oil.
Oil exploration work requires both expertise and the procurement of the tools and devices required to operate in this sector, ie infrastructure works are very costly.
This experience and equipment equipment makes them indispensable in the industry. Many of the national oil companies have to work with supermajors in this respect. As a result of market dominance in this segment, supermajor manufacturers are doing most of the high-level jobs in the sector.
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