The Significance and Study of the Oil Economy
The Oil Economy and Its Interdisciplinary Connections
1. Relationship with Other Disciplines
- Geography: Distribution of oil sites
- History: Evolution of the oil industry
- Politics: Control of the industry
2. Relationship with Statistics and Mathematics
- Demand and supply functions
- Linear, non-linear, and logarithmic functions
- Operations research
Tools for Studying the Oil Economy
1. Energy Map
- Depleted sources: Oil, gas, coal
- Renewable sources: Hydropower, geothermal energy
- Unusual sources: Heavy oil, oil sands asphalt
2. Map of a Barrel of Oil
Components of a barrel of oil before and after refining
3. Metrics and Conversion Factors
Scales and transactions for transferring crude oil and energy
The Importance of Oil
1. Economic Significance
- Main source of energy
- Engine of economic development
- Indispensable source of national income
2. Strategic Importance
- Influences policies and state affairs
- Source of protein in the food industry
3. Advantages of Oil
- Ease of extraction, transportation, and storage
- High calorific value
- Versatile refining capabilities
4. Challenges
- Finite resource
- Environmental concerns
Stages of the Oil Industry
1. Research and Exploration
Identifying and assessing oil reserves
2. Oil Extraction
Preparing wells and extracting crude oil
3. Transportation
Establishing infrastructure for transporting oil
4. Refining
Converting crude oil into petroleum products
5. Distribution
Establishing networks for storing and distributing oil products