AMITY SCHOOL OF ECONOMICS

AMITY UNIVERSITY

NOIDA, UTTAR PRADESH

TERM PAPER

ON

Fuel ProductionSubmitted by: Submitted to

Bezhan Kawous Ms Shivani Jaswal

Enrollment NO: A6018214002 Lecturer

Batch 2014-2017

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ContentAbstract Page 2

Section One Page 3&4

Section Two Page 5

Section Three Page 6,7,8,9,10

Section Four Page 11&12

Section five Page 13& 14

Conclusion 17&18

Reference 19

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Fuel production

Abstract

The topic is about fuel production. At first I am have I have defined what is fuel and its characteristics.

In the second part I have shortly discussed about thefuel Extraction procedure.

How it’s taken out of the ground, and how it gets filtered …

In the third part those top countries who produces fuel or we can say those countries who are kings in producing fuel, those countries who supply and completes the demand of people for fuel are discussedin detail.

In the fourth part of this topic I have shortly discussed about top countries who spends billions $ in consuming fuel. Those countries who consume most of the fuel produced are being discussed in this part

The fifth part of this topic contains the importance and role of fuel in people’s life.

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How people use fuel for which purpose people use fuelthe average amount of money they pay for fuel yearly etc.

At the end I will come to a conclusion and I will share my own ideas and my own point of views about fuel production, products and usages.

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Section 1In our daily life we use different kinds of Fuel (petrol, diesel, coal…) but do we know that where we can find these fuels? , What are the characteristics of these fuels?

A prehistoric organism who remains unsettled at the bottom of oceans and lakes million years ago forms most of the fuel that is extracted.

There are two kinds of fuel one which reacts with oxygen and the second which releases energy from nuclear reactions.

If a fuel is supplied with pure oxygen it will burn more rapidly and it will release energy in a faster rate. Some fuels which release energy from nuclear reactions are much more powerful than those fuels which reacts with oxygen for example Uranium.

Coal is a combustible dark brown or black rock consisting plant matter, used as a fuel and can be found underground seams.

Its formation began during the period of Carboniferous known as the first coal age which was spanned during 360 to 290 million years ago.

I have defined fuels in two bases.

1.physical2.Occurrence

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*On the basis of physical state:As we know that matter exist in 3 forms which aresolid, liquid, and gas on this basis we can also say that fuels can be in solid, liquid and gas form.1 solid fuel. Some of them are coal, wood, bagasse etc.2 liquid fuels: some of them are petrol, LPG, diesel etc.3 gaseous fuels: some of them are coal gas, producer gas, natural gas, acetylene gas etc.*On the basis of Occurrence:On the basis of occurrence we classify fuels as follows:

*Petroleum:

It’s also called Crude oil: it’s a natural liquid fuel.It’s made of thousands of oxygen, sulphur, hydrocarbons, and nitrogen

Natural fuels:They are used in a form in which they occur in nature.They are used to produce heat

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Section 2

Extraction of petroleum:Geologists use different surveys to locate and search for geological structures that may form oil reservoirs.

Most of times gravimeters and magnetometers areused in the search for petroleum. Extracting petroleum normally starts with drilling wells into underground reservoirs. When a well is tapped a geologist notes its presence.

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In the Drilling process first the oil well is created by drilling a big and long whole in to the earth by using an oil ring. A casing is placed in the whole to provide structural integrity to the drilled bore. These holes are made on the base of the well to allow the oil to pass in to bore and at the end a collection of valves know as Christmas tree is fitted on the top in which the valves regulate pressure and control flow.

After the oil is taken out of the ground and comes in factory then they put the oil in a machine in which the machine gives the oil a lot of heat , as we know that different substances need different temperatures to boil and we also know that oil contains other products such as petrol, diesel etc.

So the oil is heated in a high level then everysubstance goes in form of vapour in a separate whole due to high temperature and then the vapour changes in to liquid by process of condensation and all the substances gets separate and oil changes to many other product such as diesel, petrol etc.

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Section 3

The following country produces the most of oil in the world.

Country Production(bbl/day)

Production (MT)

Shareof

World %

Date ofInformat

ion

—  World 84,951,200 10,194 100% 2014 est.Peak

Production

1 Russi

a 10,107,000 1212 14.05% 3/2015.[6]

10,107,000

(3/2015)

2 Saudi

Arabia 9,735,200 1168 13.09% 12/2014.[6]

9,900,000

(1/1980)

3 Unite

d States 9,373,000 1124 12.23% 4/2015.[6]

9,422,000

(3/2015)

4  China 4,189,000 502 5.15% 5/2015.[6]

4,189,000

(5/2015)

5 Canad

a 3,603,000 4.54% 12/2014.[6]

3,603,000

(1/2015)

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Country Production(bbl/day)

Production (MT)

Shareof

World %

Date ofInformat

ion

6  Iraq 3,368,000 4.45% 5/2015.[6]

3,368,000

(5/2015)

7  Iran 3,113,000 4.14% 12/2014.[6]

6,060,000

(1/1974)

8 Unite

d Arab Emirates

2,820,000 3.32% 12/2014.[6]

2,820,000

(1/2013)

9 Kuwai

t 2,619,000 2.96% 12/2014.[6]

2,650,000

(1/2013)

10

 Mexico 2,562,000 3.56% 12/2014.[6]

3,476,000

(1/2004)

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From all This 10 countries I am going to discuss about few of them.

1.Russia

Russia is on the top of the list in producing fuel it produces 10,107,000 bbl/day out of 84,951,200 bbl/day which means Russia produces 14.05% of world fuel.

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Russia is a major exporter of crude oil, petroleum products and natural gas in 2013

Russia earned 109$ billion from exporting petroleum products to Europe and North America,73$ billion from natural gas and 174$ billion from crude oil from exporting it to Europe, Turkey and some Asian countries.

2 Saudi Arabia:

Saudi Arabia is in the second position in production of fuels. Saudi produces 9,735,200 bbl/day out of 84,951,200 bbl/day which means 13.09% of world fuel.

In 2014 Saudi Arabia oil exports accounted 89% of country’s total revenue. The recent decline in oil prices of global is decreasing the valueof these exports. They have planned to spend

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230$ billion and expects to have a benefit of $190.7 billion in 2015.

3: United States

US are in the third place in producing oil &gas. US produce 9,373,000bbl/day out of 84,951,200 bbl/day which means 12.23% shares ofworld fuel production.

The United States remained the world's top maker of petroleum and characteristic gas hydrocarbons in 2014, as indicated by U.S. Vitality Information Administration gauges.

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U.S. hydrocarbon generation keeps on surpassingthat of both Russia and Saudi Arabia, the second-and third-biggest makers, separately. For the United States and Russia, all out petroleum and normal gas hydrocarbon creation, in vitality substance terms, is uniformly splitin the middle of petroleum and regular gas. Saudi Arabia's creation, then again, intensely supports petroleum.

Since 2008, U.S. petroleum creation has expanded by more than 11 quadrillion British warm units (Btu), with emotional development inTexas and North Dakota. Notwithstanding the half decrease in raw petroleum costs that happened in the second a large portion of a year ago, U.S. petroleum creation still expanded by 3 quadrillion Btu (1.6 million barrels for each day) in 2014. Characteristic gas generation—to a great extent from the eastern United States—expanded by 5 quadrillionBtu (13.9 billion cubic feet for each day) in the course of recent years. Joined hydrocarbon yield in Russia expanded by 3 quadrillion Btu and in Saudi Arabia by 4 quadrillion Btu in thecourse of recent year

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Section 4Top Fuel consuming countries:

The United States of America is the world’s biggest oil consumer, followed by China, Japan,and India.

*United States:

US are the world’s biggest fuel consumer in theworld. US consume 18.5 million barrels of oil per day in 2012. This accounted 20% of the world’s total oil consumption per day. The highest record in consumption of oil in US history was 20.8 million barrel per day which occurred in 2005.

The US is net importer of oil, but it declined from 12.4 million barrel per day in 2005 to 7.4million barrels per day in 2012.

*China:

China is in the second position in consumptionof oil at 10.3 million barrel per day about 11.7% of the world’s total oil consumption its oil consumption increased double since 2000 andconsumption of oil increased by 5% compared to the previous year.

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China is the second biggest oil importer of oilits net oil import climbed up from 3.43 millionbarrels per day in 2008 to 5.86 million barrelsper day in 2012.

*Japan

Japan consumed 4.7mbd of oil in 2012, becoming the world's third biggest oil consumer, with about 5.3% of the world's total oil consumption. Japan's oil consumption steadily declined from 2005 to 2009, but increased thereafter. Its oil consumption in 2012 was 6.3% higher than in the previous year. The country consumed more than 5mbd of oil from 1989 to 2007 and the highest oil consumption inits history was recorded at 5.7mbd in 1996.Japan has the fourth biggest refinery capacity in the world and most of its crude oil imports are from the Middle East.Japan possesses very limited oil resources and is the third biggest oil importing country after the US and China. Oil imports increased from 4.25mbd in 2009 to 4.57mbd in 2012 and thetotal oil production during the same period increased from 125,000 barrels per day (bpd) to135,000bpd.*India

India ranks fourth among the world's biggest oil consuming countries, its oil consumption in2012 stood at 3.6mbd, five per cent higher than

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the previous year, accounting for about 4.2% ofthe world's average oil consumption per day during the year. In the last 20 years the country's oil consumption has increased about three times.. The country's total oil production during thesame period increased from 772,000bpd to 990,000bpd. India's proven oil reserves as of 2013 were estimated at 5.48 billion barrels. The country imports most of the crude oil from the Middle East and has the fifth biggest refinery capacity in the world.India is also the fourth biggest oil importer in the world and its net oil imports doubled over 12 years, from 1.3mbd in 2000 to 2.6mbd in2012

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Section five

The importance of oil in our world is very easyto understand. We cannot drive our car without gasoline or petrol. The gasoline or petrol is made of crude oil. Without Oil our factories would stop working, our airplanes would be grounded and our cars would not move.Our offices and homes, if heated by oil would freeze in winter seasons. Oil is used in most of products for example: in making plastic toys and other plastic goods, detergents, farm fertilizers machines etc.In a meeting in Geneva this past year the OPEC which stands for Organization of petroleum Exporting Countries. 4 of the 13 Countries camefrom Persian Gulf. They are Qatar, Kuwait, UAE and the world’s largest exporter of oil Saudi Arabia. The other 9 members were North Africa, Iraq, Libya, Iran, Algeria, Nigeria and Gabon in West Africa, Venezuela and Ecuador in Latin America, and Indonesia in Asia. Exactly 11 years ago, OPEC increased prices of oil four times and very poor countries were not able to import oil to their countries, those poor countries faced many problems such as decrease in level of production, increased level in oil prices and etc.Oil has a great effect in a countries economy.

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Some nations are having problems in their economy and one of the reasons is that they payhuge oil bills, they earn by selling and exporting their goods abroad is taken up in paying the cost of imported oil.Due to a slump in world economy the demand for oil has dropped, that’s why there are many producers of oil are facing problems.The high price of oil made some countries to save their oil by using it less; instead of fuel they use other sources such as gas, coal …Venezuela, Mexico and Nigeria are the examples of hurt countries due to a drop in oil prices, now they don’t have that much money as they hadhoped. They thought that that the prices will keep raising and they set out on costly programs to expand their economies.As we know that many companies has huge projects that the spend millions of dollar on it and without fuel it’s impossible for them toachieve their target and complete it. Without fuel their machines will not work. In huge

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projects for example in making of big buildings, dams… human force are not enough we will need machinery power to complete our projects. So crude oil has a very important role in our lives. The world uses 85 million barrels of fuel per day so 85000000*365= 31025000000 barrels per year.Each barrel of fuel costs around 80$ so 80$*85000000= 6800000000$ per day and 6800000000*365= 2482000000000$ in a year.Now this amount shows the importance of Oil in our lives.

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Conclusion

In today’s world we use different kinds of machines such as cars, motor bikes, crushers… as humans need food to stay alive and work the same these machineries need something to work, that thing is Oil (petrol, diesel …).

We make different kinds of buildings, we take out our mines, we travel from one country to another in a short time … for these kinds of works only human force is not enough we use different kinds of machineries in these projects and works, and these machineries work with the help of fuel. Our planes will be grounded without fuel, our cars will stop without fuel, and some places will lose electricity without fuel, people will get unemployed without fuel …

Fuel has a very important role in today’s world. There are few countries that produce fuel and earn a lot of cash from it.

Russia stands in the first place in producing oil followed by Saudi Arabia, United States of America, China and Canada.

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The extraction of the oil needs a special attention and specialized people.

There are some countries that consume much morecrude oil than other countries. These countriesare

The United States of America is the world’s biggest oil consumer, followed by China, Japan,and India.The world uses 85 million barrels of fuel per day so 85000000*365= 31025000000 barrels per year.Each barrel of fuel costs around 80$ so 80$*85000000= 6800000000$ per day and 6800000000*365= 2482000000000$ in a year.Now this amount shows the importance of Oil in our lives.As we know that fuel are a scarce resource and a very important resource we should not waste it and use it for people’s satisfaction not to harm people. Currently Fuel is a necessary substance in our daily life but as we know it is a scarce resource so we should save it till the time we can and we should find another source for our future we can use coal, gas, sunenergy etc. to replace it.

Oil is like time………… Once gone will never come back.

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References

1: Wikipedia2: www.hydrocarbon.com

3: informationdose.blogspot.com

4: www.Yahoo.com/answers

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