Oil! What Is It, How Do We Get It & What Is It Worth?

There arent many things much more discussed than fuel and energy these days. There are many discussions, from the environment to the geo-political consequences of hunting for oil around the world and the philosophical implications of hoarding finite commodities for profit. Its an absolute minefield, I would like to say that it is an oilfield but unfortunately there is no such expression. People need to know about oil, despite the debate. The facts need to be made plain and there must be a very clear line delineated from fact and opinion. So what are the facts of oil, and how does it come from the ground to the earth? What Is Oil Oil is a natural substance. Many people will tell you different. It is true that there are some treatment and refinement processes that make oil into a different state than it is when it is found. However, in the broadest terms it is a naturally occurring raw material. Oil is created over millennia. It consists of the compressed fossilised materials of ancient creatures. Crushed together over millions of years, microscopic remnants of plant and animal life undergo a complex chemical metamorphosis affected by the earths heat. Its a strange substance, pooled in reservoirs deep under the earth in a mixture of gas and liquid. Oil is a natural earthly commodity like gold, silver or diamonds. It is formed by seismic movements within the earth which occur as follows; Folding this is when sideways movements push rock upward and on top of itself. Faulting this is when the layers of rock crack and move up or down in different sections. Pinching out this is when rock is squeezed from both sides and causes it to push upwards.

Its a complex metamorphosis, and Im no geologist, but this is essentially how oil is formed. See here for more information on how oil forms. How Do We Get It There is an immense level of engineering involved in extracting oil from the earth. First of all, it is necessary to find a reservoir. In some locations, it is possible to see oil oozing out from underground. The reality is that in modern times most of these locations have been tapped however in certain oil rich locations such as the Middle East it is still possible to see.

What happens when an oil site is determined is essentially a method of drilling and extracting. The process usually occurs as follows; 1. A pit is dug around the drilling hole. 2. Engines power the drill to burrow down. 3. Casing is inserted onto the drill hole walls, this is to prevent the pressure of the oil forcing it upwards and collapsing the hole. 4. A motor powers a pump. 5. The pump, the iconic design of which can be seen in many oil fields, is pushed upwards and pressurises the oil from the drill hole to the surface. Once the oil reaches the surface, it is then a matter of storing it and treating it. At this point, the oil will go through an intricate pipe system to avoid any waste and be syphoned off to an extraction facility where it will be put into barrels or tankers. As the oil flows through the pipes a flow meter will measure the intensity of the flow and a flow computer will interpret the flow in order to calculate the quantity and quality of the oil to a high degree of precision. Flow measurement systems are essential in order to quantify the oil, which is difficult for a liquid. It is an amazingly complex process and has been refined, no pun intended, over the course of around 100 years. See here more detailed information on oil drilling. Its Worth

The worth of oil and other fossil fuels such as gas is essentially determined by the amount that is available. This can be a little bit tricky ascertain, as it is difficult to estimate how much might be deposited at the drilling site seeing that it is usually quite far below the earths surface, and in some cases can be contained in porous rocks. An illustration of the difficulty in estimating the amount of such natural resources happened recently with Britains shale gas supply estimates being revised to 1,300tn cubic feet according to an article by Terry Macalister in The Guardian. The amount of oil, or any other natural resource for that matter, is not the only way to determine worth. It is also a matter of demand. The more oil there is the cheaper it will be as demand will be reduced. As it is a finite resource the demand can increase and decrease quite often as new oil fields are discovered or old ones dry up. Recently, competition from developing forms of energy production has meant that oil is potentially under threat. With the development of competing technologies that are increasingly more effective,

with things like solar power being a good example. However, the power that fossil fuels can generate means that renewable technologies are still a way off. Big Oil, Big Spoils

The notion of oil and fossil fuels is often discussed, but is not usually understood fully. I hope you have gained a little bit more of the overall process from this piece. Thanks for reading. Please feel free to comment, also check out the rest of my work on Scribd. I would particularly recommend The Progress Of Our Environmental Concerns: Are We Moving Forward?. Remember, I write on a number of subjects and across a number of platforms so make sure you add me to your circles on Google+. Sources http://www.guardian.co.uk/environment/2013/jun/27/britain-shale-gas-deposits-supply-25-years http://science.howstuffworks.com/environmental/energy/oil-drilling.htm http://science.howstuffworks.com/environmental/energy/oil-drilling7.htm