Oil key terms

Question 1

Monopoly

Answer 1

Any organisation, individual or company who controls enough market share to be able to influence the market place

Question 2

Example of monopoly

Answer 2

be able to reduce supply in order to increase prices

Question 3

Peak Oil

Answer 3

The point when oil extraction reaches its highest level, after which it begins to decline.

Question 4

Peak Oil Example

Answer 4

While countries like the UK and the US have already reached peak oil, it’s still unclear if global peak oil has happened.

Question 5

West Texas Intermediate (WTI)

Answer 5

is a lighter oil that is produced mostly in the US state of Texas. it is “sweet” and “light” and considered very high quality

Question 6

Brent Crude Oil

Answer 6

A mixture that comes from 15 different oil fields between Scotland and Norway in the North Sea

Question 7

Crude Oil

Answer 7

Naturally occuring, unrefined petroleum product composed of hydrocarbon deposits and other organic materials.

Question 8

Corporate Colonialism

Answer 8

Relates to the involvement of TNCs in the practice of colonialism. TNCs can have significant power over smal LICs. LICs will often fear questioning the role of TNCs because they do not want to loose investment

Question 9

What can crude oil be used for

Answer 9

It can be refined to produce usable products such as gasoline, diesel and various forms of petrochemicals.

Question 10

Cartel

Answer 10

A formal agreement among competing firms. it is a formal organisation of produces and manufacturers that agree to fix prices. marketing and production. in the past OPEC has been accused of this

Question 11

OPEC

Answer 11

stands for the organisation for petroleum exporting countries. It has 12 members and controls over 40% of the world’s oil supply and over 20% of the gas supply.