Economic Terms in the Petroleum Industry include Oil Boom, Petroleum Oil glut, Oil Shock, the Upstream sector, the Downstream sector, Onshore Operation, Offshore operation, etc.
The Offshore Operation has to do with all production activities on the sea in ensuring that crude oil is moved from the sea to the land. e.g. offshore drilling rig.
The Onshore Operation has to do with all production activities on the land.
The Downstream sector is the sector of the oil and gas industry that deals with the refining of crude oil for domestic consumption. This sector provides Petrol, Automated gas, diesel, kerosene.
The Upstream sector is also known as the exploration and production sector. Upstream is a term for the exploration and production stages in the oil and gas industry. It includes searching for potential underground or underwater crude oil and natural gas fields or exploratory wells and drilling and operating the wells that bring the crude oil in its raw form to the surface.
Petroleum oil glut: A situation in the global oil market where there is an oversupply of petroleum products leading to a decline or crash in the price of oil.
Oil shock: Is used to explain a situation in which the demand for oil is equal to its supply.
Evaluation Questions
1. A cartel is a monopolistic type of organisation established by producers of similar products for the purpose of restricting output of members. Explain the objectives of OPEC as a cartel
2. Discuss the contribution of petroleum to Nigeria economy
Responses