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Using Petroleum

Using Petroleum. ONE BARREL crude oil yields ALL OF. Quality of crude is declining. Refineries must be reconfigured for this, expense makes them inflexible Requires more energy in Impacts … ERoEI. “Boutique gasoline” in summer for local smog control & T. Price rises spread to

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Using Petroleum

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  1. UsingPetroleum ONE BARREL crude oil yields ALL OF

  2. Quality of crude is declining Refineries must be reconfigured for this, expense makes them inflexible Requires more energy in Impacts … ERoEI

  3. “Boutique gasoline” in summer for local smog control & T Price rises spread to WA, OR, BC and even Australia Reid Vapor Pressure ReFormulatedGasoline Cleaner Burning Gasoline

  4. Oil industry (“oil patch”) • Upstream • Exploration & extraction • Extraction is mostly controlled by NOCs • All of OPEC, 1/3 of rest • Downstream/mid-stream • Refining, distribution, retailing • Transport, ship & pipelines • Many tax subsidies • Oil depletion allowance • Move profits/losses from down/mid to up • Intangible drilling cost allowance • Deduct 70% of well cost in 1st yr, rest over 5 yrs • Enhanced oil recovery credit • For running stripper wells

  5. What/who sets oil $ ? • Depleting supply of cheap-to-market oil • Cost of “last barrel” to large pop in developing country • Demand in developed world is intertwined w/ global finance • Motivations of NOCs (85%) vs multinationals (15%) barrel price required to sustain flow CERA 2008 Likely overstated!

  6. Petrostates • Organization of Petroleum Exporting Countries ~40% of world extraction • Libya, Algeria, Venezuela, Ecuador, Nigeria, Angola, Iraq, Iran, Kuwait, Saudi Arabia, Qatar, UAE • Cartel to set oil price for max. profit to petro-economies • “Dutch disease” • Big revenue flow strengthens currency, makes exports too expensive to compete • High wages, expensive real estate • “Oil curse” • Highly automated, no need for educated pop • no incentive to diversify economy • easy control & corruption, suppression

  7. Fake Middle East Oil Reserves

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