Oil and Natural Gas

Oil and natural gas are strings of carbon and hydrogen formed from the organic material that has been compressed over millions of years. Oil and natural gas are generally referred to as petroleum. They are often found together. If a reservoir i.e an area underground has only gas and no oil, it is called non-associated gas. A reservoir containing both oil and gas is referred to as associated gas. The oil and gas found underground come in different grades or qualities. In an ordinary sense, the quality of oil is described in terms of its sweetness and heaviness. An increase in the amount of sulfur in the oil leads to the sweetness of oil. Oil with less sulfur is sweeter and requires less processing before use, and is, therefore, more valuable. The heaviness of oil refers to its density. The lighter crude oil can be refined and converted into higher value products, such as the gasoline (or petrol) used by car owners. Heavier crude tends to flow slowly and has more unwanted chemicals that must be refined out. A degree-based gravity scale created by API help compares the relative density of various crudes. Light crude is measured above 31.1API while heavy crude measures below 22.3API. Natural gas is a mixture of methane and some other contaminants. On the amount of hydrogen sulfide in the reservoir, it can be described as either sweet or sour. Refined gas, leaving mostly methane, it is called dry gas. Often natural gas is condensed into natural gas liquids, such as propane and butane. The British thermal unit (BTU) is used to measure the energy output of gas. As gas burns cleaner and has a less destructive environmental impact upon use than oil or coal, the challenges associated with storage and transport makes it more expensive. The oil reserves are usually measured in tons or barrels of oil. Production quantities are abbreviated using “bbl” (or barrels of oil per day, bbl/d or bpd). One tonne is somewhere between six and eight barrels of oil.

Reserves and production quantities of gas are measured in cubic meters (m3) or standard cubic feet (scf) The process of getting oil and gas out of the ground begins with exploration and appraisal. The Oil and gas found underground in reservoirs are sealed but connected to other chambers of oil and gas underground. On identifying a reserve of oil is, the company's often produce a description of the quality of the oil and the estimated amount is measured either by volume (barrels) or by weight (tons) Price fluctuations in oil and gas can impact the direction of the industry because costs are different at different extraction points. Even though the prices are fluctuating, the demand for energy, including oil and gas, is increasing globally. Even though the alternative forms of energy are becoming more popular, there are still strong indications that the use and production of oil and gas will continue. With the increasing industrial energy efficiency, the demand for transportation and increasing population means there is an overall increasing need for energy.