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What Exactly Is Crude Oil
Michalis 'BIG Mike' Kotzakolios


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So what is crude oil? It is a combination of various types of petrolium hydrocarbons. According to scientists, crude oil forms below the crust of the earth, often miles beneath solid rock. Before oil companies can even drill for it and extract it, they first must find it, which takes a considerable amount of complicated mapping and exploration.


Once the crude is located, the company will then drill through miles of rock; and will then pump the crude oil into a vehicle for transport. Often, this vehicle is an oil tanker. The crude oil (which has this name because it cannot be used in this unrefined form) is then taken to a refinery, where it is broken down into useful components. Most often, these useable components include such things as diesel, gas, and heating oil.


How is oil formed? Millions or even billions of years ago, microscopic ocean creatures and other organic matter formed vast layers of sludge on the bottom of prehistoric oceans. These organic layers were in turn covered by more layers of mud and sediment, pushing them deeper into earth. The movement of continental plates may also have helped bury these raw materials for oil. The intense heat and pressure several miles below the surface gradually cooked these organic sediments into a petroleum soup known today as crude.


Liquid oil is less dense than rock and water. That means it tends to migrate upwards if it is located within porous or cracked rock formations. The crude is usually stopped once it reaches an impermeable rock layer. It accumulates beneath that rock layer as a potential oil deposit. If the oil does find its way to the surface, it can form what are known as oil sands. These are sand deposits mixed with a very thick form of oil that are found near the surface of the earth. New technologies now allow the crude to be separated from the sands, resulting in a new source of oil. The Athabasca Oil Sand field in Canada is an example of this phenomenon.


What you may wonder is how much oil actuall still remains in the Earth? The answer is that we do not know in reality; however, there are several available estimates of what total untapped reserves amount to. Some of these estimates suggest that there will only be enough oil to satisfy demand for several decades. Other estimates suggest that there is enough oil to last for literally centuries. What we do know is that massive countries like China and India are developing and will soon increase demand for crude oil to massive levels.


 New techniques are being developed to extract oil from wells previously thought to be dry. Offshore drilling is expensive but can access huge new oil deposits. Many essential components of modern civilization are based on petroleum products, so crude oil remains an essential part of daily life.



 

























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Wed, 19 Nov 2008 20:28:10 GMT

Nov. 19 (Bloomberg) -- Crude oil futures fell after a U.S. Energy Department report showed that inventories climbed more than forecast as fuel demand dropped.


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Wed, 19 Nov 2008 09:03:07 GMT

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Oil projects in jeopardy as prices fall (UPI)

Wed, 19 Nov 2008 18:57:35 GMT

BARCELONA, Spain, Nov. 19 (UPI) -- The declines in the world crude oil market may force oil majors to postpone future projects even if prices remain steady, Chinese officials said.



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