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History and Terminology
of Crude Oil
Geology and time have created reservoirs of crude oil (petroleum) in
various parts of the world. Until the mid-1800s, this vast untapped
wealth lay mostly hidden below the surface of the earth. Some oil
naturally seeped to the earth's surface and formed shallow pools
that were used as a source of medicinal liquids, illuminating oil,
and, after evaporation of the volatile components, as a caulking for
boats and a building mastic (Speight, 2007). For centuries, demand
was limited but better refining techniques and surging demand for
kerosene and lubricants in the late 19th century changed this.
Crude oil is the major source of fuel used by people today. Because
crude oil is liquid, it is easy to recover by drilling and pumping,
rather than excavation, and it is easy to transport in tankers and
pipelines. In fact, the rapid rise in crude prices in the past years
has strengthened calls for renewed initiatives on energy security
for petroleum importing countries. While there has been a convergence of factors contributing to the current high oil prices, oil supply and demand fundamentals, the role of speculative forces, and
structural bottlenecks in the downstream sector have emerged as
the main areas of concern.
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An Introduction to Petroleum Technology, Economics, and Politics
by James G. Speight
Copyright © 2011 Scrivener Publishing LLC.