3.4.4: Global management of oil and gas

Question 1

Managing supply and demand though transfers, storage and pricing
2

Answer 1

global oil and gas stocks depleting

technological developments allowing exploitation of previously inaccessible sources at greater ocean depths

Question 2

Energy pathways

Answer 2

Created to allow energy transfers

Question 3

Why were energy pathways created?

Answer 3

globally, areas of oil and gas production don’t correlate with areas of consumption

Question 4

Why is gas often stored?

Answer 4

strategic reasons, price, supply and demand

Question 5

Main method of oil transport

Answer 5

by ships

Question 6

Largest worldwide store of oil?

Answer 6

USA

Question 7

Oil price extent of variations

Answer 7

fluctuate greatly

Question 8

Why is it useful to store gas?

Answer 8

for extreme weather conditions

it is harder to store than oil

Question 9

Three components of oil industries?

Answer 9

upstream, midstream, downstream

Question 10

Upstream

oil industries

Answer 10

exploration and production

Question 11

Midstream

oil industries

Answer 11

storing, marketing and transporting

Question 12

Downstream

oil industries

Answer 12

refining, distributing and retailing

Question 13

Oil and gas managed by

2

Answer 13

governments and MNCs

Question 14

OPEC

Answer 14

organisation of petroleum exporting countries

Question 15

OPEC acts as a …

Answer 15

trade block

Question 16

What does OPEC do

Answer 16

Controls the market, prevents oil price fluctuation and is responsible for 40% of the World’s oil production and holds 80% of its reserves

Question 17

When was OPEC formed?

Answer 17

1960

Question 18

Oil crisis year?

Answer 18

1973

Question 19

Oil crisis 1973

description

Answer 19

OPEC limited oil supplies to the US
caused oil shortages
and very high prices in the US
sparked US energy production

Question 20

2000s oil crisis

also known as

Answer 20

third oil crisis

Question 21

2000s oil crisis

description

Answer 21

From 2003-2008 oil prices rose

then in 2008, onset of the global recession decreased energy demand, so prices decreased

Question 22

Three possible reasons for 2000s oil crisis

price increase

Answer 22

Middle Eastern tensions
Very high oil demand in China
Falling value of the US $

Question 23

Reasons for short-term effects on oil prices

2 and an example

Answer 23

natural disasters and geopolitical events

eg: Hurricane Katrina, 2005