Oil (2): Investopedia Petroleum Flashcards
1
Q
What is petroleum (crude oil) and what is it used for?
A
Natural resource that is refined into a fossil fuel, used for vehicles, heating, machines, and plastic.
2
Q
How are oil companies divided based on their position and supply chain?
A
Upstream, midstream, and downstream.
Up: Identify, extract, produce raw materials
Mid: Store/transport oil, connecting up and down
Down: Post-production (refine, distribute, retail)
3
Q
What are three pros of petrol?
A
- Provides heat, light, transportation, and plastic
- Easy to extract/transport
- High power ratio
4
Q
What are the cons of petrol?
A
- Non-renewable supply
- Underwater drilling = leaks and fracking
- Carbon pollution
5
Q
What are the three ways that petrol is classified?
A
Geographic location, sulfur content, and API gravity
6
Q
What are the two types of extracting oil?
A
- Exploratory Drilling - Find new reserves
- Directional Drilling - Straight down into known source
7
Q
How does the energy sector attract investors?
A
Speculate on demand for oil
8
Q
What are two mutual funds who invest in the energy sector?
A
- Vanguard Energy Fund Investor Shares
- Fidelity Select Natural Gas Fund
