Petroleum Economics and Legalizations

BASIC TERMS AND CONCEPTS

-Petroleum refers to crude oil and natural gas or simply oil and gas. These are mixtures of hydrocarbons which are molecules, in various shapes and sizes, of hydrogen and carbon atoms found in the small, connected pore spaces of some underground rock formations.

-petroleum reservoirs are generally thousands of feet below the surface. Crude oil and natural gas are believed to be the remains of plants and animals, mostly small marine life, that lived many millions of years ago.

From petroleum we get numerous useful products:

 In the United States natural gas is measured in two ways, both important in petroleum accounting: