Petroleum Industry and Petroleum Geology

Influencing factors

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Crude oil (also called petroleum) is a mixture of different hydrocarbons. Many useful products can be made from these hydrocarbons. But first the useful ones must be extracted from the crude oil and separated from one another.  The different hydrocarbon components of crude oil are called fractions. The fractions are separated from one another using a process called fractional distillation. OPEC is responsible for 40% of oil production of world, and sets several policies among all countries to meet global consumption. OPEC can affect the crude oil price by enhancing or deducting  production among member countries. Supply and demand are major part of petroleum industry. Global oil inventories balance this. If production exceeds demand, supplies should be more accordingly. When consumption exceeds demand, the incremental demand can be trapped by inventories, the relationship between oil prices and oil inventories allows for corrections in both direction.