By: Rachel Asman 5th Hour Crude Oil Unrefined petroleum Made into hydrocarbons, diesel, gasoline, heating oil, jet fuel, kerosene, and petrochemicals. Fossil Fuel that can be found around the world. Has a direct effect on the price of gasoline. How Crude Oil is Converted Into Gasoline Crude Oil is converted into gasoline through a very complex process. The Oil is extracted out of the ground by drilling wells underground. It is then loaded into containers/barrels and shipped to many refineries worldwide. When it arrives to its refinery, it is separated into many useful components. Chemicals break down the molecule components into many new products. In every barrel of crude oil around the world, about 47% is used to make gasoline Ratio of Product
Products Made from a Barrel of Crude Oil
Asphalt
Liquefied Petroleum
Jet Fuel
Other Products
Diesel Fuel & Heating Oil
Gasoline
0% 10% 20% 30% 40% 50%
Why the price of gasoline has dropped downward SUPPLY AND DEMAND Economics in foreign countries have effects on the United States gasoline prices. Economics in developing countries are weak so demand for fuel is lagging (New York Times) United States domestic production has nearly doubled over the last several years, pushing out oil imports that need to find another home.(New York Times) Over production of gasoline due to energy- efficient vehicles. CR UD E OIL
Production vs. Price
Consumer Income In Favor Lower- income Opposing a) Students High Income b) Minimum a) Upper class Wage b) Executives Fixed-Income c) Professionals Retiree Retirees with Investments Business Opposing All oil companies In Favor a) NYT; Shell, BP, laid Transportation off, cut payroll to Airlines save costs Ships b) NYT; Smaller oil Truck companies are in companies(diesel) worse shape Freight companies ) Alternative energy companies Home/Environment Homes with heating oil More needed production, more pollution, more pollution, more animals/outdoor environments affected. Random Facts/Statistics As the oil stocks in the stock market decline, all aspects of retail consumer spending increase. Gas prices are 5 percent of total consumer spending. The Unites States accounts for 44% of the worlds gasoline consumption. One gallon of gasoline has about 31 millions calories. Other Facts(New York Times and ETCNBC) 250,000 oil workers have lost their jobs Approx. $34 a barrel of oil Regular gas now averages nationally to under $2 a gallon U.S drivers are saving $700 million a day Tier 2 Vocabulary Extracted: The action of taking out something Refinery: An industrial installation where a substance is refined. Fixed-Income: An income from a pension or investment that is set at a particular figure and does not vary or rise with the rate of inflation. Aspects: a particular part or feature of something. Tier 3 Vocabulary Petroleum: A liquid mixture of hydrocarbons that is present in certain rock strata and can be extracted and refined to produce fuels including gasoline, kerosene, and diesel oil. Kerosene: A light fuel oil obtained by distilling petroleum, used especially in jet engines and domestic heaters and lamps and as a cleaning solvent. Petrochemicals: A chemical obtained from petroleum and natural gas. Discussion Questions 1. One gallon of gasoline is about 31 calories. True or False? 2. Is crude oil a fossil fuel? 3. What is the product that is most often made from crude oil? 4. The upper class is in favor of the rise in gas prices. True or False? Bibliography http:// www.businessdictionary.com/definition/crude-oil.html https://en.wikipedia.org/wiki/Extraction_of_petroleum https:// www.google.com/search?q=barrel+of+crude+oil &espv=2&rlz=1C1OPRB_enUS592US593&source=lnm s&tbm=isch&sa=X&ved=0ahUKEwiMtPyQ89TKAhUDpR 4KHdr3BkkQ_AUIBygB&biw=1280&bih=699#imgrc=5 L6S4CfnIChwkM%3A http://www.kickassfacts.com/25-kickass-interesting-fac ts-about-gasoline-and-oil / http:// www.nytimes.com/interactive/2016/business/energy-en vironment/oil-prices.html http:// www.cnbc.com/2016/01/29/a-us-cheap-gas-rift-as-stu