How Well Do You Know Your Crude?
Crude oil is one of the world’s leading commodities and practically everyone uses it on a daily basis. Today we will help you get to know the black gold better by listing 11 crazy, interesting, fun facts that you may, or may not know about oil.
- This commodity is the result of a decomposition process where organic materials are exposed to intense heat and pressure for millions of years.
- Humans have been using oil for more than 5,000 years. Needless to say, it wasn’t originally used in vehicles and originally has medical uses, to treat frostbite and gout.
- While it has been around for thousands of years, drilling of this commodity is a far more recent phenomenon. The first successful drill took place in 1859, in Pennsylvania.
- Crude oil is not just a commodity, but is viewed as the “mother of all commodities” due to its use in a large variety of products including synthetic fabrics, pharmaceuticals, computers and, obviously, gasoline. Are we done? Not even close. During the refining process of crude oil many other products are synthesized including tires, perfumes, fertilizers, plastic, ammonia and bubble gum
- The word “Petroleum” is a combination of two Greek words: “Petra” which means rock and “Elaion” which means oil.
- While the USA only has 4% of the world’s population it consumed about 25% of the world’s oil – using more oil than any other country in the world. US drivers use more oil than the drivers in India and China combined.
- With all due respect to Elon Musk and Tesla Motors, gasoline is still very popular worldwide and it makes up around 45% of all crude oil.
- John D. Rockefeller has revolutionized the oil industry in the late 19th and early 20th century. He achieved a net worth of about $1.4 trillion, adjusted to current dollar rates.
- In the 1950s, up to 33 percent of the cost of oil was shipping because transporting this commodity from the Persian Gulf to USA was very pricey. By the 1970s, supertankers were developed and shipping costs dropped to only 5 percent of the price of Persian oil in the United States.
- The demand for this commodity varies according to various macroeconomic conditions. According to the International Energy Agency, high oil prices tend to have a negative impact on economic growth around the globe.
- Nowadays many people trade oil right from their home computer – investing in price rather than having to purchase and store the actual barrels.