5 Things You Didn’t Know About Oil

Oil is one resource that has been the subject of many conspiracy theories, controversies and myths. It has always driven the political dynamics between countries and played a pivotal role in crippling or elevating economies. Have you wondered what it would be like if the world hit ‘peak oil’, or what that concept entails? Do you know how far the oil industry dates back to? Have you ever noticed how entrenched oil products are in our day to day use? It isn’t called Black Gold for nothing.

This week OilVoice compiles five things about oil that you may have always wanted to know and we were afraid you would never ask.

1. Origin

The term ‘petroleum’ is derived from a Greek word ‘Petra’, which means rock and a Latin word ‘oleum’, meaning oil, so the word ‘petroleum’ literally means ‘rock oil’ and the term was first introduced in the year 1556 by German mineralogist Georg Bauer.

There are two theories doing the rounds on how petroleum or crude oil is formed. One theory, the more popular and accepted one, attributes its formation to fossilised planktons and algae, the reason why it is also known as a ‘fossil fuel.’ The second theory, called the Abiogenic origin hypothesis, refers to oil springing from hydrocarbons beneath the earth’s surface, which are of a purely inorganic nature.

Drilling for oil dates as far back as 347 AD in China, where people linked bamboo shoots to obtain oil from pits dug 800 feet/240 m deep. There is also evidence pertaining to the use of asphalt in building walls in ancient Babylon. From such modest use, the oil consumption has increased tremendously since the advent of industrial revolution in the 18th and the 19th century. The resource has seeped in to every aspect of our daily life giving rise to an industry that sees billions and billions of dollars worth of investments every year to meet the growing demand. Today, China and United States figure prominently in the world’s largest consumers of crude oil. The USA consumes 18,613,000 bbl per day (2011), which is more than 25% of the world’s total and China has recorded 9,310,000 bbl per day (2011).

2. How do you identify an oil well

The process of combing through the fields for potential untapped oil is a complex science and is known as ‘prospecting’. When in the 1900’s the wells that surfaced on their own accord were exhausted and people were looking for means to identify potential reservoirs, they had to adopt specific geologic meters and even signs to successfully find oil fields.

Patilo Higgins was the first man to have identified a geologic structure on land to help his calculations for an oil find. His belief that a salt dome, Spindletop, near Beaumont, Texas, contained oil underneath and its eventual success pioneered the use of geology for prospecting. However, it wasn’t until 1913 that Charles Gould, the first geologist was hired by a company, who propounded the link between rock structure and oil and gas, which took the use of geology in oil prospecting to the next level.

One of the earliest examples of oil discoveries that was made by applying a geological technique called ‘torsion balance,’ was the Nash Dome, in Brazoria County, Texas, in the year 1924. Torsion balance refers to the measure of gravitational field to accurately calculate the density of rock underneath. Salt domes record light gravity and the said field harboured commercially viable oil reserves.

However, technological and geological advances only take you to an extent that it is indicative of a potential reserve, and drilling still remains the only way to confirm the presence of oil.

3. Petroleum Saves Whales

Before the 19th century, whale oil consumption was at its peak for its clear and fuel rich texture. It was principally used to illuminate lamps that gave a bright and odourless flame. Whale oil was also used in lubricants, soaps and cosmetics, which led to the massive killing of the animal. However, a diminishing supply sought the refuge of petroleum which was then a newer and more enduring resource. Furthermore, the advent of petroleum distillation completely erased the market for whale oil and the product has since been banned world wide, thus saving an incredible mammal from extinction.

4. Peak Oil

This concept has always been a point of contention and is also largely misinterpreted. ‘Peak Oil’ denotes maximum production output of oil in a given field or in a group of related fields as opposed to its gradual or sometimes rapid decline in production as a result of depleting supply.

The theory of ‘Peak Oil’ was first put forward by M. King Hubert in the year 1956 to accurately predict the years when the United States oil production would peak. The concept worked and as per the Hubert peak theory the years 1965 and 1970 saw a great influx of oil production in the country.

Some industry experts forecast an optimistic trend that predicts the year 2020 to be the year when global production would peak and slowly begin its downward spiral resulting in the research and sourcing of other possible resources to replace crude oil. But there is a section of the industry that holds a more pessimistic view based on the assumption that the extensive industrial and transport use of petrol in the present day, fuelled by its extremely low prices has already pushed us over the peak and what we see now is the descent. [a controversial topic, be sure to voice your opinion below – Ed]

5. Petroleum and Consumer Goods

It will come as no surprise that oil has firmly secured its place in our living. And we are not just talking industry and transport that oil fuels. That aspect is only a slice of this enormous enterprise. Refined forms of oil and gas are present in virtually all consumer products. Televisions, computers, mobile phones, light bulbs, paper, mattresses, car seats, carpets and polyester, to name a few, all carry an element of this incredible resource. Consequently, this also explains why a raise or dip in the oil price directly impacts consumer economy across the world.

OilVoice