¶ … Environmental Hazards as a Consequence of Crude Oil/Natural Gas Exploration, Transportation, Refining and Storage
Ever since crude oil was first successfully drilled in the U.S. In Titusville, Pennsylvania, in 1859, the demand for oil has only been increasing over the years in countries all over the world. (Camden, 1883) Crude oil, from which various petroleum products are obtained, is a naturally occurring hydrocarbon component found trapped in rocks below the earth. The word "petroleum" means "rock oil" or "oil from the earth." Natural gas is another form of hydrocarbon that is also found in nature. Both crude oil and natural gas have excellent combustibility and are good sources of energy. Crude oil is not used in the extracted form; but it is refined to obtained products such as gasoline, liquefied petroleum gas (LPG), naphtha, kerosene, gas-oil and fuel oil. Secondary products during the purification of crude oil are obtained are lubricants, asphalt, perfumes and insecticides. There are, approximately, more than 4,000 different petrochemical products obtained from refining of crude oil that have commercial value. Plastics, synthetic fibers, synthetic rubbers, detergents and chemical fertilizers are some of the consumer products that are generated from crude oil. The proven crude oil reserves in the world are estimated to be approximately 1,074,850 million barrels and the consumption is estimated to be approximately 76 million barrels per day. The graph below indicates that consumption has only been increasing over the years all over the world.
Evaluate the topic
This study investigates the environmental hazards that are the resultant of the explorations, transportation, refining and storage of crude oil and refined products in countries all over the world. This study provides a holistic view of the effects of the petroleum industry. It is important to note that the petroleum industry is one where geographical boundaries and limits are generally inconsequential for the industry as a whole. For example, petroleum exploration might occur in one region but the use of the product might occur in another. The United States (19.7 million barrels per day) and Japan (5.5 million barrels per day) are two of the largest users of petroleum products, but the countries in the Middle East and Russia are the major producers. As a result, the crude oil or refined products have to be shifted from one region to another based on the supply and demand of the product.
Source: U.S. Energy Information Agency, International Energy Annual Report. (Rodrigue, 2004)
Petroleum products are probably the most commercially and domestically used form of energy source today. As a commodity of great strategic importance, petroleum has tremendous international bargaining leverage. Railroads and pipelines were built and developed to help transport the crude oil from the areas of production to the refineries. From electricity generation to transportation, petroleum products play crucial roles in today's social infrastructure. It is however important to note that the industry is not without its problems. One of the main issues in this industry is the increased environmental impact as a result of the various processes. The potential for the occurrence of extremely hazardous conditions from processes and stages such as the transportation of oil by marine vessels and the storage of large quantities of oil ishigh.
Analyze scope and purpose of the project
Environmental issues are becoming increasingly important for the petroleum industry. The petroleum industry has the potential to impact the global economy on amajor scale. The three sharp spikes (early 70s, late 70s and 1991) in oil prices observed over time-period of this industry have indicated just how dependent the world economy is on petroleum products. It is easy to correlate these price increases to the recessions that occurred in the U.S. And many world economies during these times. Countries therefore, in addition to investing heavily in the scouring of new petroleum reserves, are also looking for new ways to optimize the processes in their refineries. Increasing storage capacities is a major concern and a potential endeavor. This implies that countries have to build refineries to process the crude oil, support tank farms to store the crude oil before it is processed. Lastly, they have to store the finished products as well as develop shipping and land transportation (rails and roadways) to transport the oil from the supply point to the demand point. Issues such as global warming, fresh water pollution and spills on the high seas are however, forcing countries to reevaluate their strategies when dealing with the environmental issues related to this industry.
This study provides an overview of the logistics...
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