Petroleum - Revision history

Red marquis: /* Future of oil */

2010-05-26T04:29:10Z

Future of oil

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	==Future of oil==		==Future of oil==
	~~{{main\|Hubbert peak theory}}~~

	The ~~[[M. King Hubbert\|~~Hubbert]] peak theory, also known as '''''[[peak oil]]''''', is a theory concerning the long-term rate of production of conventional oil and other fossil fuels. It assumes that [[oil reserves]] are not replenishable (i.e. that abiogenic replenishment, if it exists at all, is negligible), and predicts that future world oil production must inevitably reach a peak and then decline as these reserves are exhausted. Controversy surrounds the theory, as predictions for when the global peak will actually take place are highly dependent on the past production and discovery data used in the calculation.		The Hubbert peak theory, also known as '''''peak oil''''', is a theory concerning the long-term rate of production of conventional oil and other fossil fuels. It assumes that oil reserves are not replenishable (i.e. that abiogenic replenishment, if it exists at all, is negligible), and predicts that future world oil production must inevitably reach a peak and then decline as these reserves are exhausted. Controversy surrounds the theory, as predictions for when the global peak will actually take place are highly dependent on the past production and discovery data used in the calculation.

	Proponents of peak oil theory also refer as an example of their theory, that when any given oil well produces oil in similar volumes to the amount of water used to obtain the oil, it tends to produce less oil afterwards, leading to the relatively quick exhaustion and/or commercial unviablility of the well in question.		Proponents of peak oil theory also refer as an example of their theory, that when any given oil well produces oil in similar volumes to the amount of water used to obtain the oil, it tends to produce less oil afterwards, leading to the relatively quick exhaustion and/or commercial unviablility of the well in question.

	The issue can be considered from the point of view of individual regions or of the world as a whole. Originally [[M. King Hubbert]] noticed that the ''discoveries'' in the United States had peaked in the early 1930s, and concluded that ''production'' would then peak in the early 1970s. His prediction turned out to be correct, and after the US peaked in 1971 - and thus lost its excess production capacity - [[OPEC]] was finally able to manipulate oil prices, which led to the oil crisis in 1973. Since then, most other countries have also peaked: Scotland's [[North Sea ~~oil\|North Sea]]~~, for example in the late 1990s. China has confirmed that two of its largest producing regions are in decline, and Mexico's national oil company, [[Pemex]], has announced that [[Cantarell Field]], one of the world's largest offshore fields, is expected to peak in 2006, and then decline 14% per annum.		The issue can be considered from the point of view of individual regions or of the world as a whole. Originally M. King Hubbert noticed that the ''discoveries'' in the United States had peaked in the early 1930s, and concluded that ''production'' would then peak in the early 1970s. His prediction turned out to be correct, and after the US peaked in 1971 - and thus lost its excess production capacity - OPEC was finally able to manipulate oil prices, which led to the oil crisis in 1973. Since then, most other countries have also peaked: Scotland's North Sea, for example in the late 1990s. China has confirmed that two of its largest producing regions are in decline, and Mexico's national oil company, Pemex, has announced that Cantarell Field, one of the world's largest offshore fields, is expected to peak in 2006, and then decline 14% per annum.

	For various reasons (perhaps most importantly the lack of transparency in [[accounting]] of global oil reserves), it is difficult to predict the oil peak in any given region. Based on available production data, proponents have previously (and incorrectly) predicted the peak for the world to be in years 1989, 1995, or 1995-2000. However these predictions date from before the recession of the early 1980s, and the consequent reduction in global consumption, the effect of which was to delay the date of any peak by several years. A new prediction by [[Goldman Sachs]] picks 2007 for oil and some time later for natural gas. Just as the 1971 U.S. peak in oil production was only clearly recognized after the fact, a peak in world production will be difficult to discern until production clearly drops off.		For various reasons (perhaps most importantly the lack of transparency in accounting of global oil reserves), it is difficult to predict the oil peak in any given region. Based on available production data, proponents have previously (and incorrectly) predicted the peak for the world to be in years 1989, 1995, or 1995-2000. However these predictions date from before the recession of the early 1980s, and the consequent reduction in global consumption, the effect of which was to delay the date of any peak by several years. A new prediction by Goldman Sachs picks 2007 for oil and some time later for natural gas. Just as the 1971 U.S. peak in oil production was only clearly recognized after the fact, a peak in world production will be difficult to discern until production clearly drops off.

	One signal is that 2005 saw a dramatic fall in announced new oil projects coming to production from 2008 onwards. Since it takes on average four to six years for a new project to start producing oil, in order to avoid the peak, these new projects would have to not only make up for the depletion of current fields, but increase total production annually to meet increasing demand.		One signal is that 2005 saw a dramatic fall in announced new oil projects coming to production from 2008 onwards. Since it takes on average four to six years for a new project to start producing oil, in order to avoid the peak, these new projects would have to not only make up for the depletion of current fields, but increase total production annually to meet increasing demand.

	2005 also saw substantial increases in oil prices due to temporary circumstances, which then failed to be controlled by increasing production. The inability to increase production in the short term, indicating a general lack of spare capacity, and the corresponding uncontrolled price fluctuations, can be interpreted as a sign that peak oil has occurred or is presently in the process of occurring.		2005 also saw substantial increases in oil prices due to temporary circumstances, which then failed to be controlled by increasing production. The inability to increase production in the short term, indicating a general lack of spare capacity, and the corresponding uncontrolled price fluctuations, can be interpreted as a sign that peak oil has occurred or is presently in the process of occurring.

Red marquis: /* Environmental effects */

2010-05-26T04:26:52Z

Environmental effects

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	==Environmental effects==		==Environmental effects==

	The presence of oil has significant social and environmental impacts, from accidents and routine activities such as ~~[[seismology\|~~seismic]] exploration, drilling, and generation of ~~[[pollution\|~~polluting]] wastes. Oil extraction is costly and sometimes environmentally damaging, although Dr. [[John Hunt ~~(oceanographer)\|John Hunt]]~~ of the [[Woods Hole Oceanographic Institution]] pointed out in a 1981 paper that over 70% of the reserves in the world are associated with visible macroseepages, and many oil fields are found due to natural leaks. Offshore exploration and extraction of oil disturbs the surrounding marine environment. Extraction may involve [[dredging]], which stirs up the [[seabed]], ~~[[kill]]ing~~ the sea plants that marine creatures need to survive. Crude oil and refined fuel spills from ~~[[tanker (ship)\|~~tanker ship]] accidents have damaged fragile ~~[[ecosystem]]s~~ in [[Alaska]], the [[Galapagos Islands]], [[Spain]], and many other places.		The presence of oil has significant social and environmental impacts, from accidents and routine activities such as seismic exploration, drilling, and generation of polluting wastes. Oil extraction is costly and sometimes environmentally damaging, although Dr. John Hunt of the Woods Hole Oceanographic Institution pointed out in a 1981 paper that over 70% of the reserves in the world are associated with visible macroseepages, and many oil fields are found due to natural leaks. Offshore exploration and extraction of oil disturbs the surrounding marine environment. Extraction may involve dredging, which stirs up the seabed, killing the sea plants that marine creatures need to survive. Crude oil and refined fuel spills from tanker ship accidents have damaged fragile ecosystems in Alaska, the Galapagos Islands, Spain, and many other places.

	Burning oil releases carbon dioxide into the atmosphere, which contributes to [[global warming]]. Per energy unit, oil produces less ~~[[carbon dioxide\|~~CO<sub>2</sub>]] than coal, but more than natural gas. However, oil's unique role as a [[transportation]] fuel makes reducing its CO<sub>2</sub> emissions a particularly thorny problem; amelioration strategies such as [[carbon sequestering]] are generally geared for large [[power ~~plant]]s~~, not individual vehicles.		Burning oil releases carbon dioxide into the atmosphere, which contributes to global warming. Per energy unit, oil produces less CO<sub>2</sub> than coal, but more than natural gas. However, oil's unique role as a transportation fuel makes reducing its CO<sub>2</sub> emissions a particularly thorny problem; amelioration strategies such as carbon sequestering are generally geared for large power plants, not individual vehicles.

	[[~~Renewable energy source\|~~Renewable energy]] alternatives do exist, although the degree to which they can replace petroleum and the possible environmental damage they may cause are uncertain and controversial. [[Sun]], [[wind]], [[geothermal]], and other renewable electricity sources cannot directly replace high energy density liquid petroleum for transportation use; instead automobiles and other equipment must be altered to allow using electricity (in ~~[[battery (electricity)\|~~batteries]]) or [[hydrogen]] (via [[fuel cell]]s or internal combustion) which can be produced from renewable sources. Other options include using [[biomass]]-origin liquid fuels ([[ethanol]], [[biodiesel]]). Any combination of solutions to replace petroleum as a liquid transportation fuel will be a very large undertaking.		[[Renewable energy]] alternatives do exist, although the degree to which they can replace petroleum and the possible environmental damage they may cause are uncertain and controversial. Sun, wind, geothermal, and other renewable electricity sources cannot directly replace high energy density liquid petroleum for transportation use; instead automobiles and other equipment must be altered to allow using electricity (in batteries) or hydrogen (via [[fuel cell]]s or internal combustion) which can be produced from renewable sources. Other options include using biomass-origin liquid fuels ([[ethanol]], [[biodiesel]]). Any combination of solutions to replace petroleum as a liquid transportation fuel will be a very large undertaking.

	~~''(See also [[Hydrogen economy]].)''~~

	==Future of oil==		==Future of oil==

Red marquis: /* History */

2010-05-26T04:23:40Z

History

Red marquis: /* Classification */

2010-05-26T04:14:53Z

Classification

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	==Classification==		==Classification==
	The [[oil industry]] classifies "crude" by the location of its origin (e.g., "West Texas Intermediate, WTI" or "Brent") and often by its relative weight ([[API gravity]]) or [[viscosity]] ("~~[[Light crude oil\|~~light]]", "intermediate" or "~~[[Heavy crude oil\|~~heavy]]"); refiners may also refer to it as "sweet", which means it contains relatively little [[sulfur]], or as "sour", which means it contains substantial amounts of [[sulfur]] and requires more refining in order to meet current product specifications.		The oil industry classifies "crude" by the location of its origin (e.g., "West Texas Intermediate, WTI" or "Brent") and often by its relative weight (API gravity) or viscosity ("light", "intermediate" or "heavy"); refiners may also refer to it as "sweet", which means it contains relatively little sulfur, or as "sour", which means it contains substantial amounts of sulfur and requires more refining in order to meet current product specifications.

	The world reference ~~[[barrel (unit)\|barrel]]s~~ are:		The world reference barrels are:
	* [[Brent Crude]], comprising 15 oils from fields in the ~~[[Brent oilfield\|~~Brent]] and [[Ninian]] systems in the [[East Shetland Basin]] of the [[North Sea]]. The oil is landed at [[Sullom Voe]] terminal in the [[Shetlands]]. Oil production from Europe, Africa and Middle Eastern oil flowing West tends to be priced off the price of this oil, which forms a [[benchmark]].		* Brent Crude, comprising 15 oils from fields in the Brent and Ninian systems in the East Shetland Basin of the North Sea. The oil is landed at Sullom Voe terminal in the Shetlands. Oil production from Europe, Africa and Middle Eastern oil flowing West tends to be priced off the price of this oil, which forms a benchmark.
	* [[West Texas Intermediate]] (WTI) for North American oil.		* West Texas Intermediate (WTI) for North American oil.
	* Dubai, used as benchmark for Middle East oil flowing to the [[Asia]]-[[Pacific]] region.		* Dubai, used as benchmark for Middle East oil flowing to the Asia-Pacific region.
	* Tapis (from [[Malaysia]], used as a reference for light Far East oil)		* Tapis (from Malaysia, used as a reference for light Far East oil)
	* Minas (from [[Indonesia]], used as a reference for heavy Far East oil)		* Minas (from Indonesia, used as a reference for heavy Far East oil)
	* The [[OPEC]] basket used to be the average price of the following blends:		* The OPEC basket used to be the average price of the following blends:
	** Arab Light [[Saudi Arabia]]		** Arab Light Saudi Arabia
	** [[Bonny Light~~]] [[~~Nigeria]]		** Bonny Light Nigeria
	** Fateh [[Dubai]]		** Fateh Dubai
	** [[Isthmus~~-34 Light\|Isthmus]] [[~~Mexico]] (non-OPEC)		** Isthmus Mexico (non-OPEC)
	** Minas [[Indonesia]]		** Minas Indonesia
	** Saharan Blend [[Algeria]]		** Saharan Blend Algeria
	** Tia Juana Light [[Venezuela]]		** Tia Juana Light Venezuela

	OPEC attempts to keep the price of the Opec Basket between upper and lower limits, by increasing and decreasing production. This makes the measure important for market analysts. The OPEC Basket, including a mix of light and heavy crudes, is heavier than both Brent and WTI.		OPEC attempts to keep the price of the Opec Basket between upper and lower limits, by increasing and decreasing production. This makes the measure important for market analysts. The OPEC Basket, including a mix of light and heavy crudes, is heavier than both Brent and WTI.

	~~See also [http://tonto.eia.doe.gov/ask/crude_types1.html]~~

	In June 15, 2005 the OPEC basket was changed to reflect the characteristics of the oil produced by OPEC members.		In June 15, 2005 the OPEC basket was changed to reflect the characteristics of the oil produced by OPEC members.
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	Arab Light (Saudi Arabia),		Arab Light (Saudi Arabia),
	Murban (UAE) and		Murban (UAE) and
	BCF 17 (Venezuela).		BCF 17 (Venezuela).

	~~See also: http://www.opec.org/home/basket.aspx~~

	==Pricing==		==Pricing==

Red marquis: /* Pricing */

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Pricing

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	==Pricing==		==Pricing==

	References to the [[oil prices]] are usually either references to the [[spot price]] of either WTI/Light Crude as traded on [[New York Mercantile Exchange]] (NYMEX) for delivery in [[Cushing, Oklahoma]]; or the price of Brent as traded on the ~~[[Intercontinental_Exchange\|~~Intercontinental Exchange]] (ICE, which the [[International Petroleum Exchange]] has been incorporated into) for delivery at [[Sullom Voe]]. The price of a barrel of oil is highly dependent on both its grade (which is determined by factors such as its specific gravity or [[API ~~gravity\|API]]~~ and its sulphur content) and location. The vast majority of oil will not be traded on an exchange but on an ~~[[over-the-counter (finance)\|~~over-the-counter]] basis, typically with reference to a marker crude oil grade that is typically quoted via pricing agencies such as [[Argus Media Ltd]] and [[Platts]]. For example in Europe a particular grade of oil, say Fulmar, might be sold at a price of "Brent plus US$0.25/barrel" or as an [[intra-company transaction]]. IPE claim that 65% of traded oil is priced off their Brent benchmarks. Other important benchmarks include Dubai, Tapis, and the OPEC basket. The [[Energy Information Administration]] (EIA) uses the Imported Refiner Acquisition Cost, the weighted average cost of all oil imported into the US as their "world oil price".		References to the oil prices are usually either references to the spot price of either WTI/Light Crude as traded on New York Mercantile Exchange (NYMEX) for delivery in Cushing, Oklahoma; or the price of Brent as traded on the Intercontinental Exchange (ICE, which the International Petroleum Exchange has been incorporated into) for delivery at Sullom Voe. The price of a barrel of oil is highly dependent on both its grade (which is determined by factors such as its specific gravity or API and its sulphur content) and location. The vast majority of oil will not be traded on an exchange but on an over-the-counter basis, typically with reference to a marker crude oil grade that is typically quoted via pricing agencies such as Argus Media Ltd and Platts. For example in Europe a particular grade of oil, say Fulmar, might be sold at a price of "Brent plus US$0.25/barrel" or as an intra-company transaction. IPE claim that 65% of traded oil is priced off their Brent benchmarks. Other important benchmarks include Dubai, Tapis, and the OPEC basket. The Energy Information Administration (EIA) uses the Imported Refiner Acquisition Cost, the weighted average cost of all oil imported into the US as their "world oil price".

	It is often claimed that OPEC sets the oil price and the true cost of a barrel of oil is around $2, which is equivalent to the cost of extraction of a barrel in the Middle East. These estimates of costs ignore the cost of finding and developing oil reserves. Furthermore the important cost as far as price is concerned, is not the price of the cheapest barrel but the cost of producing the marginal barrel. By limiting production OPEC has caused more expensive areas of production such as the North Sea to be developed before the Middle East has been exhausted. OPEC's power is also often overstated. Investing in spare capacity is expensive and the low oil price environment in the late 90s led to cutbacks in investment. This has meant during the oil price rally seen between 2003-2005, OPEC's spare capacity has not been sufficient to stabilise prices.		It is often claimed that OPEC sets the oil price and the true cost of a barrel of oil is around $2, which is equivalent to the cost of extraction of a barrel in the Middle East. These estimates of costs ignore the cost of finding and developing oil reserves. Furthermore the important cost as far as price is concerned, is not the price of the cheapest barrel but the cost of producing the marginal barrel. By limiting production OPEC has caused more expensive areas of production such as the North Sea to be developed before the Middle East has been exhausted. OPEC's power is also often overstated. Investing in spare capacity is expensive and the low oil price environment in the late 90s led to cutbacks in investment. This has meant during the oil price rally seen between 2003-2005, OPEC's spare capacity has not been sufficient to stabilise prices.
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	Oil demand is highly dependent on global macroeconomic conditions, so this is also an important determinant of price. Some economists claim that high oil prices have a large negative impact on the global growth. This means that the relationship between the oil price and global growth is not particularly stable although a high oil price is often thought of as being a late cycle phenomenon.		Oil demand is highly dependent on global macroeconomic conditions, so this is also an important determinant of price. Some economists claim that high oil prices have a large negative impact on the global growth. This means that the relationship between the oil price and global growth is not particularly stable although a high oil price is often thought of as being a late cycle phenomenon.

	A recent high point was reached in January 1999, after increased oil production from Iraq coincided with the [[Asian financial crisis]], which reduced demand. The prices then rapidly increased, more than doubling by September 2000, then fell until the end of 2001 before steadily increasing, reaching US $40 to US $50 per barrel by September 2004. [http://futures.tradingcharts.com/chart/CO/M]		A recent high point was reached in January 1999, after increased oil production from Iraq coincided with the Asian financial crisis, which reduced demand. The prices then rapidly increased, more than doubling by September 2000, then fell until the end of 2001 before steadily increasing, reaching US $40 to US $50 per barrel by September 2004. [http://futures.tradingcharts.com/chart/CO/M]
	In October 2004, light crude [[futures contract]]s on the NYMEX for November delivery exceeded US $53 per barrel and for December delivery exceeded US $55 per barrel. Crude oil prices surged to a record high above $60 a barrel in June 2005, sustaining a rally built on strong demand for gasoline and diesel and on concerns about refiners' ability to keep up. This trend continued into early August 2005, as NYMEX crude oil futures contracts surged past the $65 mark as consumers kept up the demand for gasoline despite its high price. (see [[Oil price increases of 2004-2006]]).)

	~~Individuals can now trade~~ crude oil ~~through online trading sites [[margin account]] or their banks through [[structured product]]s indexed~~ on the ~~Commodities markets~~.		In October 2004, light crude futures contracts on the NYMEX for November delivery exceeded US $53 per barrel and for December delivery exceeded US $55 per barrel. Crude oil prices surged to a record high above $60 a barrel in June 2005, sustaining a rally built on strong demand for gasoline and diesel and on concerns about refiners' ability to keep up. This trend continued into early August 2005, as NYMEX crude oil futures contracts surged past the $65 mark as consumers kept up the demand for gasoline despite its high price.

	See also [http://www.wtrg.com/prices.htm History and Analysis of Crude Oil Prices], [http://dhatz.blogspot.com/2006/06/oil-to-38657-per-barrel.html How derivatives drive oil prices up, despite ample supply in physical oil market] and [[asymmetric price transmission]]		Individuals can now trade crude oil through online trading sites margin account or their banks through structured products indexed on the Commodities markets.

			See also [http://www.wtrg.com/prices.htm History and Analysis of Crude Oil Prices], [http://dhatz.blogspot.com/2006/06/oil-to-38657-per-barrel.html How derivatives drive oil prices up, despite ample supply in physical oil market] and asymmetric price transmission

	==Top petroleum-producing countries==		==Top petroleum-producing countries==

Red marquis: /* Top petroleum-producing countries */

2010-05-26T04:08:02Z

Top petroleum-producing countries

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	In order of amount produced in 2004 (MMbbl/d = ''millions of barrels per day''):		In order of amount produced in 2004 (MMbbl/d = ''millions of barrels per day''):
	*Saudi Arabia]] (OPEC) - 10.37 MMbbl/d		*Saudi Arabia (OPEC) - 10.37 MMbbl/d
	*Russia - 9.27 MMbbl/d		*Russia - 9.27 MMbbl/d
	*United States <sup>1</sup> - 8.69 MMbbl/d		*United States <sup>1</sup> - 8.69 MMbbl/d

Red marquis: /* See also (in alphabetic order) */

2010-05-26T04:07:04Z

Red marquis at 04:06, 26 May 2010

2010-05-26T04:06:24Z

Show changes

Red marquis: /* Articles */

2010-05-26T03:32:31Z

Articles

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	===Articles===		===Articles===
	* [http://www.miriresortcity.com/?q=earthoil Discovery of oil in South East Asia] - History of an oil town.		* [http://www.miriresortcity.com/?q=earthoil Discovery of oil in South East Asia] - History of an oil town.
	* [http://pr.caltech.edu/periodicals/CaltechNews/articles/v38/oil.html The End of the Age of Oil] - article adapted from a talk by Caltech vice provost and professor of physics [[David Goodstein]]		* [http://pr.caltech.edu/periodicals/CaltechNews/articles/v38/oil.html The End of the Age of Oil] - article adapted from a talk by Caltech vice provost and professor of physics David Goodstein
	* [http://www.publicintegrity.org/oil/ The Politics of Oil] - A report on the oil industry's influence of lawmakers and public policy by the ''[[Center for Public Integrity]]''.		* [http://www.publicintegrity.org/oil/ The Politics of Oil] - A report on the oil industry's influence of lawmakers and public policy by the ''Center for Public Integrity''.
	* [http://news.bbc.co.uk/2/hi/business/3953907.stm BBC: Stability fears rise as oil reliance grows]		* [http://news.bbc.co.uk/2/hi/business/3953907.stm BBC: Stability fears rise as oil reliance grows]
	* [http://www.washingtonpost.com/wp-dyn/content/article/2005/06/09/AR2005060900148_pf.html Top Saudi Says Kingdom Has Plenty of Oil] "261 billion barrels in reserve..."		* [http://www.washingtonpost.com/wp-dyn/content/article/2005/06/09/AR2005060900148_pf.html Top Saudi Says Kingdom Has Plenty of Oil] "261 billion barrels in reserve..."

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2010-05-26T03:31:54Z

External links

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	{{Commons\|Petroleum}}		{{Commons\|Petroleum}}
	{{Wikinewspar\|Economy_and_business#Commodities}}		{{Wikinewspar\|Economy_and_business#Commodities}}
	*[http://www.pbs.org/now/shows/224/index.html/ Crude Awakening] (''[[NOW]]'')		*[http://www.pbs.org/now/shows/224/index.html/ Crude Awakening] (''NOW'')
	* [http://www.eia.doe.gov/oil_gas/petroleum/info_glance/petroleum.html US Energy Information Administration] - Part of the informative website of the US Government's Energy Information Administration.		* [http://www.eia.doe.gov/oil_gas/petroleum/info_glance/petroleum.html US Energy Information Administration] - Part of the informative website of the US Government's Energy Information Administration.
	* [http://www.api.org/ American Petroleum Institute] - A site run by the American Petroleum Institute, the trade association of the US oil industry.		* [http://www.api.org/ American Petroleum Institute] - A site run by the American Petroleum Institute, the trade association of the US oil industry.

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	* [[Petro-free]] : that does not use or sell petroleum (i.e. petro-free [[fuel station]]).		* [[Petro-free]] : that does not use or sell petroleum (i.e. petro-free [[fuel station]]).
	* [[Renewable energy]]		* [[Renewable energy]]
	* [[Soft energy path]]
	* [[Mopar magazine]]		* [[Mopar magazine]]

← Older revision		Revision as of 04:23, 26 May 2010
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	The first modern oil well was drilled in 1848 by Russian engineer F.N. Semyonov, on the Aspheron Peninsula north-east of Baku.		The first modern oil well was drilled in 1848 by Russian engineer F.N. Semyonov, on the Aspheron Peninsula north-east of Baku.

	The first commercial oil well drilled in North America was in Oil Springs, Ontario, Canada in 1858, dug by James Miller Williams. The American petroleum industry began with Edwin Drake's discovery of oil in 1859, near Titusville, Pennsylvania. The industry grew slowly in the 1800s, driven by the demand for kerosene and oil lamps. It became a major ~~[[nation]]al~~ concern in the early part of the 20th century; the introduction of the [[internal combustion engine]] provided a demand that has largely sustained the industry to this day. Early "local" finds like those in [[Pennsylvania]] and [[Ontario]] were quickly exhausted, leading to "oil booms" in [[Texas]], [[Oklahoma]], and [[California]].		The first commercial oil well drilled in North America was in Oil Springs, Ontario, Canada in 1858, dug by James Miller Williams. The American petroleum industry began with Edwin Drake's discovery of oil in 1859, near Titusville, Pennsylvania. The industry grew slowly in the 1800s, driven by the demand for kerosene and oil lamps. It became a major national concern in the early part of the 20th century; the introduction of the [[internal combustion engine]] provided a demand that has largely sustained the industry to this day. Early "local" finds like those in Pennsylvania and Ontario were quickly exhausted, leading to "oil booms" in Texas, Oklahoma, and California.

	By 1910, significant oil fields had been discovered in [[Canada]] (specifically, in the province of [[Alberta]]), the [[Dutch East Indies]] (1885, in [[Sumatra]]), ~~[[Persian Empire\|~~Persia]] (1908, in [[Masjed Soleiman]]), [[Peru]], [[Venezuela]], and [[Mexico]], and were being developed at an industrial level.		By 1910, significant oil fields had been discovered in Canada (specifically, in the province of Alberta), the Dutch East Indies (1885, in Sumatra), Persia (1908, in Masjed Soleiman), Peru, Venezuela, and Mexico, and were being developed at an industrial level.

	Even until the mid-[[1950s]], [[coal]] was still the world's foremost fuel, but oil quickly took over. Following the [[1973 energy crisis]] and the [[1979 energy crisis]], there was significant [[media]] coverage of oil supply levels. This brought to light the concern that oil is a limited resource that will eventually run out, at least as an economically viable energy source. At the time, the most common and popular predictions were always quite dire, and when they did not come true, many dismissed all such discussion. The future of petroleum as a fuel remains somewhat controversial. ''[[USA Today]]'' news (2004) reports that there are 40 years of petroleum left in the ground. Some would argue that because the total amount of petroleum is finite, the dire predictions of the 1970s have merely been postponed. Others argue that technology will continue to allow for the production of cheap hydrocarbons and that the earth has vast sources of unconventional petroleum reserves in the form of [[tar sands]], bitumen fields and [[oil shale]] that will allow for petroleum use to continue in the future, with both the Canadian tar sands and United States shale oil deposits representing potential reserves matching existing liquid petroleum deposits worldwide.		Even until the mid-1950s, coal was still the world's foremost fuel, but oil quickly took over. Following the [[1973 energy crisis]] and the [[1979 energy crisis]], there was significant media coverage of oil supply levels. This brought to light the concern that oil is a limited resource that will eventually run out, at least as an economically viable energy source. At the time, the most common and popular predictions were always quite dire, and when they did not come true, many dismissed all such discussion. The future of petroleum as a fuel remains somewhat controversial. ''USA Today'' news (2004) reports that there are 40 years of petroleum left in the ground. Some would argue that because the total amount of petroleum is finite, the dire predictions of the 1970s have merely been postponed. Others argue that technology will continue to allow for the production of cheap hydrocarbons and that the earth has vast sources of unconventional petroleum reserves in the form of tar sands, bitumen fields and oil shale that will allow for petroleum use to continue in the future, with both the Canadian tar sands and United States shale oil deposits representing potential reserves matching existing liquid petroleum deposits worldwide.

	Today, about 90% of vehicular fuel needs are met by oil. Petroleum also makes up 40% of total energy consumption in the United States, but is responsible for only 2% of electricity generation. Petroleum's worth as a portable, dense energy source powering the vast majority of vehicles and as the base of many industrial chemicals makes it one of the world's most important ~~[[commodity\|~~commodities]]. Access to it was a major factor in several military conflicts, including [[World War II]] and the [[Persian Gulf War]]. About 80% of the world's readily accessible reserves are located in the [[Middle East]], with 62.5% coming from the Arab 5: [[Saudi Arabia]] (12.5%), [[UAE]], [[Iraq]], [[Qatar]] and [[Kuwait]]. The USA has less than 3%.		Today, about 90% of vehicular fuel needs are met by oil. Petroleum also makes up 40% of total energy consumption in the United States, but is responsible for only 2% of electricity generation. Petroleum's worth as a portable, dense energy source powering the vast majority of vehicles and as the base of many industrial chemicals makes it one of the world's most important commodities. Access to it was a major factor in several military conflicts, including World War II and the Persian Gulf War. About 80% of the world's readily accessible reserves are located in the Middle East, with 62.5% coming from the Arab 5: Saudi Arabia (12.5%), UAE, Iraq, Qatar and Kuwait. The USA has less than 3%.

	===Alternative means of producing oil===		===Alternative means of producing oil===

	As ~~[[Oil price increases of 2004-2006\|~~oil prices continue to escalate]], other alternatives to producing oil have been gaining importance. The best known such methods involve extracting oil from sources such as [[oil shale]] or [[tar sands]]. These resources are known to exist in large quantities; extracting the oil at low cost and without too deleterious an impact on the environment remains a challenge.		As oil prices continue to escalate, other alternatives to producing oil have been gaining importance. The best known such methods involve extracting oil from sources such as oil shale or tar sands. These resources are known to exist in large quantities; extracting the oil at low cost and without too deleterious an impact on the environment remains a challenge.

	It is also possible to transform [[natural gas]] or [[coal]] into oil (or, more precisely, the various hydrocarbons found in oil).		It is also possible to transform natural gas or coal into oil (or, more precisely, the various hydrocarbons found in oil).

	The best-known such method is the [[Fischer-Tropsch process]], It was a concept pioneered in [[Nazi Germany]] when ~~[[International trade\|import]]s~~ of petroleum were restricted due to war and [[Germany]] found a method to extract oil from coal. It was known as ''Ersatz'' ("substitute" in [[German ~~language\|German]]~~), and accounted for nearly half the total oil used in ~~[[World War II\|~~WWII]] by Germany. However, the process was used only as a last resort as naturally occurring oil was much cheaper. As crude oil prices increase, the cost of coal to oil conversion becomes comparatively cheaper.		The best-known such method is the Fischer-Tropsch process, It was a concept pioneered in Nazi Germany when imports of petroleum were restricted due to war and Germany found a method to extract oil from coal. It was known as ''Ersatz'' ("substitute" in German), and accounted for nearly half the total oil used in WWII by Germany. However, the process was used only as a last resort as naturally occurring oil was much cheaper. As crude oil prices increase, the cost of coal to oil conversion becomes comparatively cheaper.

	The method involves converting high ash coal into [[synthetic oil]] in a multistage process. Ideally, a [[ton]] of coal produces nearly 200 ~~[[liter]]s~~ (1.25 bbl, 52 US gallons) of crude, with [[by-~~product]]s~~ ranging from tar to ~~[[Abundance of the chemical elements\|~~rare chemicals]].		The method involves converting high ash coal into [[synthetic oil]] in a multistage process. Ideally, a ton of coal produces nearly 200 liters (1.25 bbl, 52 US gallons) of crude, with by-products ranging from tar to rare chemicals.

	Currently, two companies have commercialised their Fischer-Tropsch technology. [http://www.shell.com.my/smds Shell] in [[Bintulu]], [[Malaysia]], uses [[natural gas]] as a [[feedstock]], and produces primarily low-[[sulfur]] [[diesel]] fuels. [http://www.sasol.com Sasol] in [[South Africa]] uses coal as a feedstock, and produces a variety of synthetic petroleum products.		Currently, two companies have commercialised their Fischer-Tropsch technology. [http://www.shell.com.my/smds Shell] in Bintulu, Malaysia, uses [[natural gas]] as a feedstock, and produces primarily low-sulfur [[diesel]] fuels. [http://www.sasol.com Sasol] in South Africa uses coal as a feedstock, and produces a variety of synthetic petroleum products.
	The process is today used in [[South Africa]] to produce most of the country's [[diesel]] fuel from coal by the company [[Sasol]]. The process was used in South Africa to meet its energy needs during its isolation under [[Apartheid]]. This process has received renewed attention in the quest to produce low [[sulfur]] [[diesel]] fuel in order to minimize [[the environment]]al impact from the use of diesel [[engine]]s.

	~~An alternative method~~ is the [[~~Karrick process~~]]~~, which converts~~ coal ~~into crude oil, pioneered~~ in the ~~1930s~~ in the ~~United States~~.		The process is today used in South Africa to produce most of the country's [[diesel]] fuel from coal by the company Sasol. The process was used in South Africa to meet its energy needs during its isolation under Apartheid. This process has received renewed attention in the quest to produce low sulfur [[diesel]] fuel in order to minimize the environmental impact from the use of diesel [[engine]]s.

	More recently explored is [[thermal depolymerization]] (TDP). In theory, TDP can convert any organic waste into petroleum.		An alternative method is the Karrick process, which converts coal into crude oil, pioneered in the 1930s in the United States.

			More recently explored is thermal depolymerization (TDP). In theory, TDP can convert any organic waste into petroleum.

	===Production, consumption and alternatives ===		===Production, consumption and alternatives ===
	~~{{sect-stub}}~~

	The term alternative propulsion or "alternative methods of propulsion" includes both		The term alternative propulsion or "alternative methods of propulsion" includes both
	* [[alternative fuel]]s used in standard or modified [[internal combustion engine]]s (i.e. combustion [[hydrogen]]).		* [[alternative fuel]]s used in standard or modified [[internal combustion engine]]s (i.e. combustion hydrogen).
	* propulsion systems not based on internal combustion, such as those based on [[electricity]] (for example, [[electric vehicle\|electric]] or [[hybrid vehicle]]s), [[air vehicle\|compressed air]], or [[fuel cell]]s (i.e. hydrogen fuel ~~cells~~).		* propulsion systems not based on internal combustion, such as those based on electricity (for example, [[electric vehicle\|electric]] or [[hybrid vehicle]]s), [[air vehicle\|compressed air]], or [[fuel cell]]s (i.e. [[hydrogen fuel cell]]s).

	The nowdays cars can be classified between the next main groups:		The nowdays cars can be classified between the next main groups:
Line 78:		Line 78:

	===Black Gold===		===Black Gold===
	'''''Black gold''''', in most of the world, refers to [[crude oil]] or petroleum. The name is derived from the [[black]] color of crude oil combined with its status as a highly valuable resource, serving in the [[industrial age]], in many ways, the same role that [[gold]] did in the pre-industrial era.		'''''Black gold''''', in most of the world, refers to crude oil or petroleum. The name is derived from the black color of crude oil combined with its status as a highly valuable resource, serving in the industrial age, in many ways, the same role that gold did in the pre-industrial era.

	In the [[Appalachian Mountains]] of the [[United States]], a major coal-producing region, the term refers to coal. In [[Taiwan]], it means [[iron]], petroleum, and [[coal]].		In the Appalachian Mountains of the United States, a major coal-producing region, the term refers to coal. In Taiwan, it means iron, petroleum, and coal.

	The term was popularized by the television show ''The Beverly Hillbillies'' where it was mentioned in the theme song, along with another synonym for crude oil, "Texas Tea".		The term was popularized by the television show ''The Beverly Hillbillies'' where it was mentioned in the theme song, along with another synonym for crude oil, "Texas Tea".