Topic 9 Flashcards
Resource
A quantity of petroleum not currently to be commercially recoverable. If a quantity of petroleum is known (having been discovered) and is potentially recoverable, but cannot yet in a commercially beneficial capacity, it is considered a contingent resource. If it has not yet been discovered, but is estimated to be potentially recoverable at a certain future date, it is considered a prospective resource (James G. Ross, Guidelines for the Evaluation of Petroleum Reserves and Resources, 2001).
Reserve
Known quantities of petroleum that are commercially recoverable and projected to remain recoverable from a given date onward (James G. Ross, Guidelines for the Evaluation of Petroleum Reserves and Resources, 2001).
Production
The process of extracting resource (usually petroleum or natural gas) for sale on the market.
Depletion
The state in which all recoverable reserves have been extracted, and any remaining or theorized reserves are economically or technologically unrecoverable.
Peak Oil
- An event, based on M. King Hubbert’s theory, at which point the maximum rate of extraction of petroleum is reached, after which the rate of production is expected to enter terminal decline.
the basic concept of peaking is that any given oil deposit, by its geologic nature, can be extracted at an increasing rate until about half of the deposit is gone.
(Wikipedia)
Supply elasticity
Elasticity is the term economists use to describe how much supply or demand responds to changes in price. If a small change in price produces a large change in demand, demand is said to be elastic. If a large change in price produces a small change in supply, then supply is said to be inelastic. In economic terms, the oil supply is becoming less elastic as new oil supplies come increasingly from unconventional oil.
Unconventional Oil
A type of petroleum that is produced or obtained through techniques other than traditional oil well extraction. Unconventional oil production is commonly seen as more costly than conventional oil production, less efficient, and is likely to cause more environmental damage. This is because unconventional oil is considered “heavier” and requires more complex procedures to process. However, the ever-increasing global demand for petroleum, combined with its shrinking supply, has more firms turning to unconventional oil. Sources of unconventional oil include synthetic oil, oil sands, and shale formations. (Investopeda)
Shale Oil
An unconventional oil produced from oil shale rock fragments by pyrolysis, hydrogenation, or thermal dissolution. These processes convert the organic matter within the rock (kerogen) into synthetic oil and gas. The resulting oil can be used immediately as a fuel or upgraded to meet refinery feedstock specifications by adding hydrogen and removing impurities such as sulfur and nitrogen. The refined products can be used for the same purposes as those derived from crude oil. (Wikipedia)
Tar Sands Oil
Extra Heavy crude or Bitumen..The liquid hydrocarbons (heavy black viscous oil) extracted from tar sands, also known as bitumen. Tar sands can be mined and processed to extract the oil-rich bitumen, which is then refined into oil.
Natural Gas Liquids
Natural gas liquids (NGLs) are hydrocarbons—in the same family of molecules as natural gas and crude oil, composed exclusively of carbon and hydrogen. Ethane, propane, butane, isobutane, and pentane are all NGLs (see table above). There are many uses for NGLs, spanning nearly all sectors of the economy. NGLs are used as inputs for petrochemical plants, burned for space heat and cooking, and blended into vehicle fuel. (EIA)
Asset Lock-in
Switching cost of moving to a different fueling type might require behavior or operational changes that customers are unable or unwilling to accommodate. For example: switching from petroleum fuels to other types of fuels may make it harder or less certain that fueling stations will be available. Fleet owners may find it difficult or more costly to change part of their fleet to a new fuel type with the rest still using the old method and maintaining two fueling infrastructures, making fleet conversion an all or nothing proposition.
Refining
DOWNSTREAM
The process of transforming crude oil into the specific types of hydrocarbons necessary for fuel and heating applications. Refined fuels include: AV-Gas (Jet fuel), Gasoline, Heavy Fuel Oil (for freight ships), Diesel, kerosene
Passenger Kilometers
The transportation of one passenger over a distance of one kilometer on a transit vehicle. Used as metric for standardizing passenger transport in order to measure and compare transportation costs (especially for public or mass commercial transit).
Tonne-Kilometers (TKM)
The transportation of one tonne over a distance of one Kilometer. Used as a metric for standardizing freight transport in order to measure and compare transportation costs.
CAFE Standards
Corporate Average Fuel Economy (CAFE)
Response to oil embargo of 1970s lead the US and other importing nations to adopt Fuel Economy Standards (CAFE STANDARDS). Oil fired electricity generators needed to be converted to dual-fuel capability, which would allow them to easily shift to other fuel sources if oil was unavailable.
