The Oil and Gas Industry Flashcards
What is a secondary economic activity?
Secondary economic activity is any activity that is involved in taking the natural resources, changing them through a process such as manufacturing which produces a new product which is now different and usually of a higher value.
Eg. Tomatoes being washed, steamed and pressed into jam or pasta sauce.
What are the factors influencing the location of an industry?
raw material, power resources, water supply, climate, labour, market, transportation, capital, gov policy, own factors
Physical factors influencing location.
Land Space
Raw Materials
Climate
Hazards
Water Supply/ Power
Human factors influencing location
Labour Supply
Transport
Communications
Government Policy
Capital
Markets
Utilities available and accessible.
Site
the availability and cost of land is important. Large factories in particular will need flat well-drained land on solid bedrock.(adjacent water supply may be necessary)
Raw Materials
Industries requiring heavy and bulk materials that are expensive to transport will generally locate as close to these raw materials as possible.
Energy
Industries needed to be located near fast-flowing rivers or coal mines. But today energy can be transmitted almost anywhere except for energy-hungry industries like metal smelting that are drawn to countries with cheap hydro electricity like Norway.
Natural routeways and harbours
these were essential factors in the past and are still important today as many modern roads and railways still follow natural route ways. It prvides good location for ports and industrial complexes.
Climate
some industries such as aerospace and film benefit directly from a sunny climate. Indirect benefits such as lower heating bills and a more fab=vourable quailty of life may be apparent.
Oil and gas in the Caribbean
Petroleum, also called crude oil, is a fossil fuel that is a non-renewable resource. Fossil fuels contain both hydrogen and carbon and so are known as hydrocarbons. Crude oil is usually black or dark brown and is also known as “black gold”, but can also be yellowish, reddish, tan, or even greenish. Like coal and natural gas, petroleum was formed from the remains of ancient marine organisms, such as plants, algae and bacteria. Millions of years ago, algae and plants lived in shallow seas. After dying and sinking to the seafloor, the organic material mixed with other sediments and was buried. Over millions of years under intense heat and pressure, the remains of these organisms transformed into fossil fuels. Coal and natural gas are also fossil fuels that form under similar conditions.
Factors Influencing the Location of the Oil Industry in Trinidad and Tobago
Raw Materials
Processing Plants
Energy sources- Utilities
Government Policy
Land Space
Raw Materials
Crude oil is found both onshore and offshore in Trinidad and Tobago. Offshore platforms or blocks can be found to the East and South western parts of the Island. Most Onshore wells are no longer viable, however new discoveries are being pursued in the Mayaro region by BP and Touchstone Exploration.
Transport
Unlike many heavy industries, Oil and Gas is not as dependent on a good road network as much of the crude oil and gas is transported by pipeline across the country from Mayaro to the Processing Plant at Marabella. Oil tankers are ships that are designed for the bulk transport of oil and these are used offshore. In recent times, crude oil has been imported for processing at the plant. Making close port facilities being most important to the process.
Available energy supply
Heavy Industries require large amount of energy to process the crude oil in valuable goods. Therefore the industry must be near an reliable energy sourc
Flat open land
allows for the expansion of the industry to hold tanks, testing facilities as well as various refining facilities.
Government Policies
have helped in implementing the location of the Oil and Gas Industry in Trinidad. For the most part, government lands have been utilised for processing. Additionally, government leases offshore blocks to investors such as BP, BG and Shell for exploration and extraction of Oil and gas supplies. They earn revenue from these leases.
Labour Supply
The oil industry is located on the western side of the island which is quite populated. There are also a number of tertiary level educational institutions which provide training in the oil and gas industry. Therefore there is a ready supply of semi and highly skilled labour.
Benefits of oil and gas industry
major revenue earner, encouraged investment in the country, employment for both semi/skilled persons,most products are raw materials of other secondary industries that produce new products locally etc. example: transportation fuels.
Disadvantages
- The price of oil fluctuates quite often especially if there is a greater supply than demand. As a result, sometimes the revenue received may fluctuate.
- Extraction and the new oil finds are proving to be expensive as the location of these finds are deep below the earth’s surface. Additionally, fossil fuels are non renewable resources so that extraction is reducing the amount of oil available.
- Alternative sources of energy are becoming cheaper and more readily available.This has resulted in a reduced demand for fossil fuels. Sources such as bio-fuels, solar energy, wind farms, etc have become more trendy to be used as energy sources.
- World events such as covid19 have also led a reduction in the demand for fossil fuels. As more persons work from home and less travel occurs, there is a lower demand for fossil fuels. Thus, the price is falling.
