Exam 1 Study questions Flashcards
What are the 3 forms of fossil fuels?
Coal, natural gas, and petroleum.
In 1973, crude oil prices quadruple in just four months (from $2.90 to $11.65 per barrel). This question comes from the very short video titled “Fast Historical Picture Review in about 2 minutes” during week 1.
TRUE
The first oil price shock was in ____, with the Arab oil embargo which caused an ______ in oil prices and shattered the consuming countries’ complacency about supply security and prices.
1973, rise
Oil prices reached how many $ per barrel as the highest ever, in 2008? Do not include $ in your answer. This question comes from the very short video titled “Fast Historical Picture Review in about 2 minutes” during week 1.
150
What was the reason behind the energy consumption growth in the commercial sector in the 1950’s? This question comes from the lecture on Energy Economics.
Introduction of air conditioning
What is one of the most used indicator of industrial activity in the upstream (which also impacts the oilfield and equipment sector) part of the oil and gas industry?
rig count
What are the two leading global benchmark crude oils, including the location of the crude oil.
West Texas Intermediate at Cushing, OK and Brent in theNorth Sea (UK)
What is the name of the hydrocarbon that is C3H8?
Propane
In OECD countries, consumption has recovered to a level equal to that prior to the recession in 2008.(From Ch. 3 Energy Economics and updated class lecture)
FALSE
Energy Dense fuels are not ideal for transportation fuel because they are too heavy to be carried in a standard vehicle.
FALSE
Gasoline surpasses kerosene as leader of American Petroleum Industry in this year. This question comes from the very short video titled “Fast Historical Picture Review in about 2 minutes” during week 1.
1919
Growth in world oil consumption is expected to be concentrated in OECD countries.
FALSE
What are the 3 sectors of the Oil and Natural Gas industry? In other words, what are the sectors of the energy value chain.
Upstream, midstream, and downstream
Which of the following is a light sweet crude oil?
API of 30 and 0.5% sulfur
What is the major component of natural gas?
Methane
_________is a term often used to describe the processing, storage and transportation sectors within the oil and gas industry. Itdefines the industry processes that occur between the upstream and downstream sectors.
Midstream
Consumption amongst non-OECD countries can be described how over the recent 15 years? (From Ch. 3 Energy Economics)
almost linear trend upward
In what year is OPEC formed?
1960
What year was the OPEC oil embargo against the US?
1973
Over time, electricity has been responsible for most of the energy consumption growth in the commercial sector due to the use of what? Hint: From Chapter 3 Energy Economics lecture.
air conditioning
What year did Colonel Edwin L. Drake drill the first productive oil well in the U.S. (also considered the first in the world). This question comes from the very short video titled “Fast Historical Picture Review in about 2 minutes” during week 1.
1859
What year did J.D. Rockefeller form Standard Oil? This question comes from the very short video titled “Fast Historical Picture Review in about 2 minutes” during week 1.
1877
What year was the world’s first true gusher oil well. This was in Texas and is know as Spindletop. This question comes from the very short video titled “Fast Historical Picture Review in about 2 minutes” during week 1.
1901
In 1986, oil prices crashed to this level. Enter in the number of dollars. do not show cents. This question comes from the very short video titled “Fast Historical Picture Review in about 2 minutes” during week 1.
10
Threeprimaryreference refining margins are:
US Gulf Coast, Northwest Europe and Singapore
Rejected energy encompasses which of the following? select all that apply.
Energy lost to ineffeciency, energy lost to the resistance in wiritn, heat loss in machine usage
Refining and marketing is known collectively as ___________.
No choice is correct (downstream)
Who caused the downturn of the oil industry that lasted almost ten years?
The Saudi Oil Minister
The US can now export crude oil as of January 2016, the first time in the last 40 years. This statement is:
TRUE
U.S. oil production is greater than the rest of the world combined in what year? This question comes from the very short video titled “Fast Historical Picture Review in about 2 minutes” during week 1.
1909
What type of fuel has the highest BTU per volume? Hint: From the Ch. 3 Energy Economics lecture.
Diesel
The ____ method provides for more stable earnings in periods of high exploration costs and unsuccessful exploratory drilling. From Chapter 8: Oil and Gas Accounting
Full Cost
Which country consumes the most oil? This question comes from the lecture on Energy Economics.
U.S.A.
Income statements prepared with the _______ accounting method tend to be LESS conservative because certain costs are _________ rather than ________.
Full cost/capitalized/expensed
Energy Conversion: 90,000 barrels of oil is approximately equal to what amount of mcf (thousand cubic feet of natural gas):
Hint: 1bbl = 6 mcfe - 540,000 mcfe
Cowboy Energy has 90 million barrels of proven reserves and 1000 million cubic feet of natural gas proven reserves. How much are the total reserves in BOE (barrel of oil equivalent)?Remember that mcf is thousand cubic feet of natural gas and the conversion factor is1BOE = 6 mcfe.
90.17
In the lecture on Chapter 3, what was discussed as one of the most important characteristics of a fuel source?
Energy Density
Which natural gas liquid is used to make the base chemical, ethylene?
Ethane
Which petrochemical molecule is this? C2H4
Ethylene
Under the successful efforts method, all exploratorydry holes are __________ .
expensed
From the lectures on energy economics, what is something major that the Industrial energy section produces?
Petrochemicals
Laundry detergent is a petroleum product. (T/F)
TRUE
What is considered the most profitable product that DuPont has ever had? (Hint: This was covered in the lecture on Petrochemicals. See the PowerPoint slides if you do not remember.)
Nylon
One of the most well-known crack spreads is the:
NYMEX 3:2:1
Why has propane usage remained strong in the residential sector while heating oil usage has declined? (From Ch. 3 Energy Economics)
All of the above
What is a subsidy miner?
A person, group, or firm that actively seeking money from government subsidies
What are not directly reflected on an oil and gas company balance sheet?
NextEra Energy
According to the lecture, when did coal overtake wood as the primary fuel source in the United States?
1880
From the Robert Bryce video. Which of the following are points that Robert Bryce makes in the video?
- Scale2. The Big Fib - We cannot run the world on renewable energy.3. Density is Green – It allows us to do more with less.4. Top of the Second Inning - the shale revolution is the most important change in the energy sector since the East Texas field discover.5. N2N - Natural gas to nuclear – Natural gas and Nuclear are the way of the future.
What are not directly reflected on an oil and gas company balance sheet?
Reserve Values
