Week 11 Flashcards
What was gasoline originally used for before the internal combustion engine?
It was a byproduct of kerosene refining and was often dumped.
Who developed the first internal combustion cars and when?
Karl Benz in the 1870s to mid-1880s in Germany.
How did the internal combustion engine impact the oil industry?
It created a market for gasoline, which was previously discarded.
What did William Knox Darcy do?
developed the oil industry in Persia, founding what became British Petroleum.
How did John D. Rockefeller benefit from gasoline’s rise?
He used gasoline as a fuel in refining and gained a new market through internal combustion engines, leading to Standard Oil’s monopoly.
What made internal combustion engines superior to alternatives?
The power of gasoline.
How did Henry Ford’s Model T impact society?
It made cars more widespread and affordable.
How did cars affect urban planning?
They enabled suburban spread and required highways and gas station networks.
How did increased gasoline demand change oil exploration?
It expanded exploration in Alberta, Texas, and the Middle East.
Why did gasoline become critical during wars?
tanks, ships, planes, and transport all depended on it.
What role did oil play in the 1953 Iranian coup?
The CIA and U.K. replaced Iran’s government to secure oil industry interests.
What was OPEC’s impact during the 1973 oil embargo?
It caused a global recession by limiting oil supply.
What does OPEC stand for
The Organization of Petroleum Exporting Countries
What was PetroCanada’s purpose when founded?
To be a “window on the industry” during the 1970s economic crisis.
What is petroleum?
A naturally occurring liquid used for fuel, plastics, and other products.
What are the three sectors of the petroleum industry?
Upstream (exploration), midstream (transportation), and downstream (refining and marketing).
Pros of petroleum
Stable energy source.
High power output and ease of transportation.
Multiple uses (fuel, plastics, etc.).
Cons of petroleum
Carbon emissions harm the environment.
Drilling and transport can cause ecological damage.
Non-renewable, with a finite supply.
What are alternatives to Petroleum?
Solar, wind, and biofuels.
Which countries have the largest oil reserves (2022)?
Venezuela, Saudi Arabia, and Canada.
How does OPEC influence oil prices?
By setting production quotas and controlling global supply.
What causes price volatility in the oil market?
Inelastic supply and demand, and geopolitical events.
What is the “bitumen netback”?
The price of bitumen after deducting transport and diluent costs.
Why is Alberta’s oil priced lower than Brent or WTI?
Due to lower quality, geographic distance, and limited market access.
