Crude oil, also referred to as petroleum, is a resource that is drilled for throughout the world. Crude oil is the "black stuff" that comes out of the ground, also known as Petroleum. It's made up of a variety of elements like carbon, hydrogen and sulfur, and originates from the remains of animals and plants that existed millions of years ago -- hence the term "fossil fuel."When refined and processed, crude oil provides the energy resources we have come to depend on in modern society. Crude oil provides the foundation for many products including plastics and petrochemicals in addition to the fuel for our cars and heating oil for our homes
Crude Oil is a complex mixture consisting of 200 or more different organic compounds, mostly alkenes and smaller fraction aromatics. Different Crude contains different combinations and concentrations of these various compounds.
Crude oil is refined into hundreds of products such as gasoline, diesel, jet fuel, natural gas, heating oil, kerosene, asphalt, road oil, lubricants and liquid petroleum gases such as butane and propane. Like prices of other commodities the price of crude oil experiences wide price swings in times of shortage or oversupply. The crude oil price cycle may extend over several years responding to changes in demand as well as OPEC and non-OPEC supply.
However, crude oil in its purest form is of little use to anyone. People must refine it in order to produce energy, a process that creates gasoline, diesel fuel, kerosene and other products. The completed petroleum products later end up in places like gas stations and factories all over the world.
Liquefied Petroleum Gas (LPG) is essentially a petroleum gas that has been converted to a liquid by application of pressure. LPG consists of Propane, butane or a mixture of these, depending on the application and or climate.
Crude oil prices are important in determining gasoline prices because crude is the primary raw material used to produce gasoline and other petroleum products. In some cases, the price of crude oil may account for up to half the price of a gallon of gasoline.
In the next five years, almost half of global oil demand growth will come from China, and this trend is set to continue to 2035, as oil demand from the transportation sector is growing strongly in countries such as China and India. In contrast, oil demand among OECD countries is expected to decline over the next two decades, driven mostly by government policies on fuel efficiency and the fact that rates of vehicle ownership are already high.
Total world consumption increased by 390,000 bbl/d from the first quarter to the second quarter of 2013, reaching 89.5 million bbl/d. EIA projects consumption to grow by an additional 940,000 bbl/d in the third quarter of 2013, driven by seasonal consumption patterns. EIA expects annual average total world consumption to increase by 1.1 million bbl/d in 2013 and by 1.2 million bbl/d in 2014.