3.4.4: Global management of oil and gas Flashcards
Managing supply and demand though transfers, storage and pricing
2
global oil and gas stocks depleting
technological developments allowing exploitation of previously inaccessible sources at greater ocean depths
Energy pathways
Created to allow energy transfers
Why were energy pathways created?
globally, areas of oil and gas production don’t correlate with areas of consumption
Why is gas often stored?
strategic reasons, price, supply and demand
Main method of oil transport
by ships
Largest worldwide store of oil?
USA
Oil price extent of variations
fluctuate greatly
Why is it useful to store gas?
for extreme weather conditions
it is harder to store than oil
Three components of oil industries?
upstream, midstream, downstream
Upstream
oil industries
exploration and production
Midstream
oil industries
storing, marketing and transporting
Downstream
oil industries
refining, distributing and retailing
Oil and gas managed by
2
governments and MNCs
OPEC
organisation of petroleum exporting countries
OPEC acts as a …
trade block
What does OPEC do
Controls the market, prevents oil price fluctuation and is responsible for 40% of the World’s oil production and holds 80% of its reserves
When was OPEC formed?
1960
Oil crisis year?
1973
Oil crisis 1973
description
OPEC limited oil supplies to the US
caused oil shortages
and very high prices in the US
sparked US energy production
2000s oil crisis
also known as
third oil crisis
2000s oil crisis
description
From 2003-2008 oil prices rose
then in 2008, onset of the global recession decreased energy demand, so prices decreased
Three possible reasons for 2000s oil crisis
price increase
Middle Eastern tensions
Very high oil demand in China
Falling value of the US $
Reasons for short-term effects on oil prices
2 and an example
natural disasters and geopolitical events
eg: Hurricane Katrina, 2005
