8 In Sham We Trust

Question 1

Before the 1800s, oil was primarily used for:
A. Cooking
B. Heating
C. Kerosene production
D. It wasn’t widely used.

Answer 1

D. It wasn’t widely used.

Question 2

What made gasoline valuable for the first time?
A. Development of steam engines
B. Internal combustion engines
C. Oil embargoes
D. Refining processes for plastics

Answer 2

B. Internal combustion engines

Question 3

Which country saw the first internal combustion cars developed?
A. United States
B. Germany
C. England
D. France

Answer 3

B. Germany

Question 4

Who founded British Petroleum?
A. William Knox D’Arcy
B. John D. Rockefeller
C. Karl Benz
D. Henry Ford

Answer 4

A. William Knox D’Arcy

Question 5

What innovation did Henry Ford introduce to car manufacturing?
A. The internal combustion engine
B. The assembly line
C. Synthetic rubber tires
D. Gasoline engines

Answer 5

B. The assembly line

Question 5

By the 1890s, Standard Oil controlled what percentage of global refining capacity?
A. 50%
B. 70%
C. 90%
D. 80%

Answer 5

C. 90%

Question 6

The 1953 coup in Iran was orchestrated by:
A. Iran and Russia
B. The United States and United Kingdom
C. France and Germany
D. Saudi Arabia and Egypt

Answer 6

B. The United States and United Kingdom

Question 6

Increased demand for oil in Canada led to exploration primarily in:
A. Ontario
B. Alberta
C. Quebec
D. British Columbia

Answer 6

B. Alberta

Question 7

What is OPEC’s primary function?
A. Reduce oil extraction globally
B. Stabilize global oil prices and policies
C. Impose sanctions on non-member countries
D. Promote renewable energy

Answer 7

B. Stabilize global oil prices and policies

Question 8

The 1973 OPEC oil embargo was a response to:
A. Cold War tensions
B. The Yom Kippur War
C. The Six-Day War
D. NATO sanctions

Answer 8

B. The Yom Kippur War

Question 9

Which product is a byproduct of petroleum refining?
A. Bitumen
B. Biofuel
C. Hydrogen
D. Ethanol

Answer 9

A. Bitumen

Question 10

Which type of oil is considered the highest quality for refining?
A. Heavy oil
B. Sour oil
C. Sweet, light oil
D. Blended oil

Answer 10

C. Sweet, light oil

Question 10

Alberta’s main oil benchmark is:
A. Brent
B. WTI
C. Western Canada Select (WCS)
D. Arabian Light

Answer 10

C. Western Canada Select (WCS)

Question 11

The benchmark price used for U.S.-produced oil is:
A. Brent
B. WCS
C. Dubai Crude
D. West Texas Intermediate (WTI)

Answer 11

D. West Texas Intermediate (WTI)

Question 12

The process of blending bitumen with diluents for transportation creates:
A. Sweet oil
B. Sour oil
C. Dilbit
D. Crude oil

Answer 12

C. Dilbit

Question 13

The Model T was significant because:
A. It used renewable fuels
B. It revolutionized car affordability
C. It was the first electric car
D. It ran on steam engines

Answer 13

B. It revolutionized car affordability

Question 14

Why is Brent oil usually more expensive than WTI?
A. Higher quality
B. Lower sulfur content
C. Easier transportation access
D. All of the above

Answer 14

D. All of the above

Question 15

What was the primary cause of the 1986 oil price crash?
A. OPEC’s quota adjustments
B. Overproduction and reduced demand
C. Iranian Revolution
D. North Sea oil discoveries

Answer 15

B. Overproduction and reduced demand

Question 16

Why is petroleum referred to as a “non-renewable” resource?
A. It takes millions of years to form
B. Its extraction is technologically limited
C. It can be synthetically produced
D. It cannot be refined further

Answer 16

A. It takes millions of years to form

Question 17

What energy alternative does not rely on petroleum?
A. Natural gas
B. Coal
C. Biofuels
D. Nuclear power

Answer 17

D. Nuclear power

Question 18

What event in the 1970s highlighted OPEC’s influence on global markets?
A. Iranian Revolution
B. Yom Kippur War
C. Oil embargo
D. Gulf War

Answer 18

C. Oil embargo

Question 19

What environmental impact is associated with petroleum use?
A. Groundwater contamination
B. Increased greenhouse gases
C. Pipeline spills
D. All of the above

Answer 19

D. All of the above

Question 20

What is the main advantage of light oil over heavy oil?
A. Higher energy density
B. Easier and cheaper refining
C. More stable prices
D. Greater global availability

Answer 20

B. Easier and cheaper refining

Question 20

Which country has the largest proven oil reserves?
A. Saudi Arabia
B. Canada
C. Venezuela
D. Russia

Answer 20

C. Venezuela

Question 21

What triggered Iran’s nationalization movement in the oil industry?
A. Western sanctions
B. Low royalties paid by foreign companies
C. The discovery of new oil fields
D. A shift in global energy policies

Answer 21

B. Low royalties paid by foreign companies

Question 22

Which of the following is a direct investment method in petroleum markets?
A. Mutual funds
B. ETFs
C. Oil futures
D. Index funds

Answer 22

C. Oil futures

Question 23

How do oil spills mainly harm the environment?
A. Polluting oceans and coastlines
B. Depleting oil reserves
C. Contaminating soil fertility
D. Lowering energy prices

Answer 23

A. Polluting oceans and coastlines

Question 24

The phrase “You only pump oil once” highlights:
A. The importance of renewable energy
B. The finite nature of oil resources
C. The efficiency of oil extraction
D. The global demand for oil

Answer 24

B. The finite nature of oil resources

Question 25

How does OPEC manage global oil supply?
A. Imposing tariffs
B. Controlling member quotas
C. Buying out non-member companies
D. Subsidizing alternative energy

Answer 25

B. Controlling member quotas

Question 26

What role does spare capacity play in the oil market?
A. Balances global supply-demand fluctuations
B. Reduces refining costs
C. Lowers environmental risks
D. Stabilizes geopolitical tensions

Answer 26

A. Balances global supply-demand fluctuations