Economics - Crude Oil Market Analysis
A PROJECT REPORT
ON
DEMAND, SUPPLY & ELASTICITY
OF
CRUDE OIL
SUBMITTED BY
Group -5
Karan Chopra (2012137)
Manik Grover (2012155)
Manish (2012156)
Nancy Pande (2012178)
Nayan Sharma (2012182)
Nitya Agarwal (2012188)
Introduction
Crude oil is a naturally occurring substance (i.e., “Fossil Fuel”, formed from organic remains over a period of millions of years) found in certain rock formations in the earth. It is a dark, sticky liquid which, scientifically speaking, is classified as a hydrocarbon. Crude oil is highly flammable and can be burned to create energy. Derivatives from crude oil make an excellent fuel.
Measuring Crude Oil
Crude oil is measured in barrels. When crude oil first came into large-scale commercial use in the United States in the 19th century, it was stored in wooden barrels. One barrel equals 42 US gallons, or 159 liters. In some cases crude oil is also measured in tons. The number of barrels contained in each ton varies depending on the type and specific gravity of each crude, however the average number considered would be around 7.33 barrels per each ton.
Factors Affecting Demand * Population
A significant factor on petroleum demand has been human population growth. Oil production per capita peaked in the 1970s. The world’s population in 2030 is expected to be double that of 1980. There are speculations or predictions that oil production in 2030 will have declined back to 1980 levels as worldwide demand for oil significantly out-paces production. Oil production per capita has declined from 5.26 barrels per year (0.836 m³/a) in 1980 to 4.44 barrels per year (0.706 m³/a) in 1993, but then increased to 4.79 barrels per year (0.762 m³/a) in 2005. In 2006, the world oil production took a downturn from 84.631 to 84.597 million barrels per day. This has caused the oil production per capita to drop again to 4.73 barrels per year (0.752 m³/a).One factor that has so far helped ameliorate the effect of population growth on demand is the
ON
DEMAND, SUPPLY & ELASTICITY
OF
CRUDE OIL
SUBMITTED BY
Group -5
Karan Chopra (2012137)
Manik Grover (2012155)
Manish (2012156)
Nancy Pande (2012178)
Nayan Sharma (2012182)
Nitya Agarwal (2012188)
Introduction
Crude oil is a naturally occurring substance (i.e., “Fossil Fuel”, formed from organic remains over a period of millions of years) found in certain rock formations in the earth. It is a dark, sticky liquid which, scientifically speaking, is classified as a hydrocarbon. Crude oil is highly flammable and can be burned to create energy. Derivatives from crude oil make an excellent fuel.
Measuring Crude Oil
Crude oil is measured in barrels. When crude oil first came into large-scale commercial use in the United States in the 19th century, it was stored in wooden barrels. One barrel equals 42 US gallons, or 159 liters. In some cases crude oil is also measured in tons. The number of barrels contained in each ton varies depending on the type and specific gravity of each crude, however the average number considered would be around 7.33 barrels per each ton.
Factors Affecting Demand * Population
A significant factor on petroleum demand has been human population growth. Oil production per capita peaked in the 1970s. The world’s population in 2030 is expected to be double that of 1980. There are speculations or predictions that oil production in 2030 will have declined back to 1980 levels as worldwide demand for oil significantly out-paces production. Oil production per capita has declined from 5.26 barrels per year (0.836 m³/a) in 1980 to 4.44 barrels per year (0.706 m³/a) in 1993, but then increased to 4.79 barrels per year (0.762 m³/a) in 2005. In 2006, the world oil production took a downturn from 84.631 to 84.597 million barrels per day. This has caused the oil production per capita to drop again to 4.73 barrels per year (0.752 m³/a).One factor that has so far helped ameliorate the effect of population growth on demand is the