Let’s take a closer look at the role of oil in the world economy. Is oil so important?
In the last two decades, the global oil industry has undergone significant changes that have created a new production and commercial situation. These processes have affected the production, consumption and trade of oil, which, despite serious efforts to increase the share of alternative energy sources, remains the main energy resource and has a significant impact on the development of the global economy. The sharp ups and downs of oil quotations have become an acute problem of global economic development. The collapse of oil prices in 2015-2016 led to a significant reduction in foreign currency revenues to the state budgets of liquid hydrocarbon sellers. In an effort to rectify the situation, exporting countries, starting from autumn 2016, made efforts to prevent a further drop in oil prices.
So where is oil used and why is it so important?
Oil is the main source of energy in the world. It is used to produce various fuels such as petrol, diesel, paraffin and fuel oil. These fuels are used in automobiles, aircraft, ships, power generators and industrial processes. Due to its high energy density and relative cheapness, petroleum remains the preferred source of energy for many countries and industries.
Naturally, it is impossible to deny the fact that oil is the most essential resource. How can you sow the fields without fuelling the tractor? It is simply impossible. Yes, technologies do not stand still, that is why it is possible to use different energy sources. But the electric tractor is not yet such an advanced machine that would be widely used. Besides, the price for such equipment will obviously be high.
Oil is also an important raw material for the production of a wide range of industrial goods. It is used in the production of plastics, rubber products, fertilisers, pharmaceuticals and many other goods. Due to its chemical properties and versatility, petroleum plays a key role in modern industry. Even some cosmetic products and laundry powder have petroleum in them. No, of course you won’t find direct oil content, but there are particles of it!
In addition, associated petroleum gases, refined products and a number of residual fractions are used as feedstock for petrochemical synthesis of polymeric materials and plastics, synthetic fibres, synthetic rubber, synthetic detergents, alcohols, aldehydes, ketones and feed proteins
Interestingly, due to the development of the chemical and petrochemical industry, more than 8% of the world’s total oil production is used in the creation of synthetic rubbers and fibres, plastics, surfactants, detergents, plasticisers, additives and dyes.
Specific applications of oil
Crude oil is rarely used, now mainly to reinforce power lines and pipelines. Refined and refined petroleum is used to produce:
- petrol;
- paraffin,
- diesel fuel;
- jet fuel;
- fuel for gas turbines and boiler plants;
- lubricating and speciality oils;
- paraffin;
- bitumen for road construction and waterproofing;
- synthetic fatty acids;
- carbon black for the rubber industry
- coke for electrodes;
- solvents;
- raw materials for the chemical industry.
Many countries, especially those that are major oil producers, depend on oil exports to provide their economies with significant revenues from oil products. For these countries, oil is a major source of income and a key element of the national economy. If you are looking for a reliable oil supplier, look no further than Idol Energy. This company is a reliable partner in oil supply.