Black Gold Texas Tea Trevor MacKenzie Black Gold the Texas Tea In this paper I will touch on topics of oil prices, the demise and growth of oil companies large and small and international oil regulators, natural oil deposits and their locations and life expectancy, and the future of the oil industry and all it effects. I have chosen to write on this topic because of personal interest in the worlds biggest resource, oil. In past years I have thought of how the modern world revolves around certain elements and ideas, one of these is oil. I wanted to try to get answers to questions I have had about How long can we keep extracting oil from the Earth? and How will people overcome a worldwide complete oil scarcity? When I try to answer these questions to myself I get frustrated because there are so many variables that contribute to answer such questions that it boggles my mind. So I have an opportunity to learn or partially learn the answers in researching this broad topic of the oil industry.My connection to this topic is just like any other average American.
I use oil in some way shape or form every day, whether I am driving my car, heating my house, or typing a research paper I am directly or indirectly using oil. I am affected by oil in countless ways by means of which are mostly out of my control. For instance companies who use oil to make products that burn holes in the Ozone layer, or that fuel air polluting combustion engines can effect the climate, and health of our planet in the long run. What I do know about the oil on our planet is that we are using it all up at alarming rates.Since 1859 when Colonel Drake dug the first oil well we have been steadily using up the oil hidden below the earths crust.
If substantial solutions to the future oil crisis are not complete there will be tremendous worldwide repercussions of political, economic, and social unrest. I want to learn much more about this topic because it fascinates me as a reality and a problem in which so much time, money, ingenuity, and effort will be put into solving. I am also interested the rise of oil prices and the control of oil trade worldwide. I want to know a good estimate on how much longer this resource will be abundant.
Also on when and how oil will be to scarce and expensive to use in todays conventional uses. In finding information for my topic I used a few different methods, like using the Internet, ProQuest databases, and utilizing the Colby library. During the Colby trip I was still unsure on what my topic was. I knew I was going to write it on oil but I didnt know what aspects of oil. In searching for periodicals I found a few topics I liked and stuck with them.I found more and more articles with topics pertaining to my subject of oil companies, natural deposits, and the future of oil. I spent too much time looking through articles and stuff on the computer that I didnt spend any time looking for a book or primary source. I did however eventually find a primary source through ProQuest.
I feel all of my other sources are sufficient in the amount of information needed to write this paper. I have articles from many different magazines, journals, and one newspaper source.The process was time consuming but paid off in retrieving the information I wanted. The number one resource of all time is dwindling fast to depletion without major solution or alternative to the problem. Oil is used in every country all over the world, we depend on it, and we have learned to tame and convert it into many diverse and useful products.
The extent of oil left in the world that is easy to use is a guess and has been estimated by many. The exact amount of oil is unknown, and there is going to be a point when we have used or extracted as much as possible from the earth. Mankind has a major problem on its hands and there are no answers to the problem. New ideas, technologies, resources, and an unpredictable future are our only hopes of overcoming an oil crisis.Our society to day runs on energy, pure energy.
Some comes from the sun, some from water, some from wind, some from nuclear power, but most comes from oil. Oil accounts for 38% of all energy used. People depend on oil and oil companies that sell and deliver that oil to the consumer. Hundreds of oil companies have been competing over land rich in oil for years and they will continue to fight. These companies lease or buy land from a government in countries all over the world and drill for oil.
The country and company drilling both get profit from the oil sold to different companies and different countries.Large oil companies like Mobil and Exxon who just merged have a larger market of people buying their oil. Because they hold the rights to thousands of wells all over the world and produce a lot of oil, these ventures bring in a lot of money. However a small company like Gerrity Oil with wells in the Denver-Julesberg Basin in eastern Colorado, will not bring in as much money but may still be as successful as Mobil, just on a smaller market. American independent companies like Gerrity are thought to have been disappearing but small independents are moving in and finding oil where larger companies said there was none. Although independents dont sell to a world market they do sell their oil to local businesses, other oil companies, and refineries. Mobile and Exxon merging, British Petroleum buying Amoco, and Ultamar Diamond Shamrock buying Total Petroleum inc.
, are striving to find big oil buyers like the U.S., and gain economic control over other companies by merging or buying out other companies. Merging two big companies can cause problems like cost cutting which means cutting workers, which leads to high unemployment rate that lowers the economy.
The mergers and takeovers are being driven by imminent oil shortage with big political and economic problems, like discontinuing trade agreements and bringing other industries to a halt. The Organization of Petroleum Exporting Countries (OPEC) produces 35% of the worlds total oil supply is basically a policeman of the oil producing countries. Companies that operate in OPEC regulated countries (Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, the United Arab Emirates, Qatar, and Venezuela) must comply with oil production regulations to keep prices and sales from varying too much. This means that companies that buy from OPEC regulated countries can only buy so much and sell so much, therefore there is no chance of flooding the market with cheaper oil from high production countries. World oil regulators like OPEC are key players in amounts of oil produced, sold, and bought by countries. If there were no regulations on the amount of oil produced and sold there would be tremendous highs and lows in the price and availability of oil.Oil geologists that specialize in estimating the world oil supply state that (90% of oil fields have been tapped and many are drilled to exhaustion.
As our deposits are being used up there has been a major step forward in finding new oil to feed upcoming big buyers. Technology has allowed new ways of finding oil, 3 dimensional seismic analysis, infared detectors, and radar from space satellites are no …