macro economy

OIL AND GAS INDUSTRY

Petroleum in one form or other has always been the most useful natural resource of man . More than four thousand years ago , Herodotus , a Greek historian of 5th century B .C .E and Diodrus Siculus , a historian of Agyrim Sicily in C A 90 B C- C A 30 B C discovered that Babylon were using Asphalt black substance found in Petroleum during the construction of the walls and towers of Babylon . In 1410 AD , native Americans were harvesting the oil for medicinal purposes . It was in 1859 , in

the quite farm country of North Western Pennsylvania that the drilling of the first most important crucial oil well took place . This well began to be known as the Drake Well after the name of "Colonel " Edwin Drake , the man who gave the idea of drilling the well for commercial use . This was the first phase of the history of Oil Industry , which gave new lease to our lives (The Paleontological Research Institution , The History of Oil

Today , the Oil and Gas Industry has touched every sphere of our lives It is the most depleted and yet the most used natural resource by the economies all around the world . With the increase in new explorations and technological developments , the natural oil and gas production is increasing at the rate of two billion cubic feet a day , and currently Devon Energy is one of the largest and independent oil and gas producers in the United States . Based in Oklahoma City , it is supplying three percent of the gas consumed in North America and producing 600 ,000 barrels of oil a day . The company is also drilling more than 2000 oil wells every year in North America in an area stretching from the Gulf of Mexico to the northernmost reaches of Canada (O G Next Generation Oil and Gas , 2007

There are many unpredictable reasons , like over all economic growth continuous development in technology , change in energy prices , change in weather patterns and public policy decisions which led to the changes in the levels of production and in demand and supply . According to Energy Information Administration projections from 2007 to 2030 , the production of domestic liquid embracing crude oil , natural gas plant liquids , refinery processing gains and other refinery inputs , is expected to see a tremendous increase . The reason behind the increase is the growth in refinery processing and other refinery inputs . It is projected that this growth will compensate any predicted reduction in crude oil production after 2017 . This increase in the production owes to some extent to the high tech oil recovery methods , the increase in the production in the deep waters in Gulf of Mexico , higher resource assumptions for the Bakken Shale formation in the Williston Basin (Energy Information Administration , 2007

As per the AEO2007 reference case , the production including the supply of supplement natural gas reflects an increase from 18 .3 trillion cubic feet in 2005 to 21 .1 trillion cubic feet in 2022 (Energy...