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... unable if it's at a relatively shallow depth and near other fields. However, to warrant the cost of producing in more challenging regions (the Arctic North Slope, for example) the reservoir may have to be several hundred feet thick. Third, entrapment.
The earth is constantly creating irregular geologic structures through both sudden and gradual movements such as: earthquakes, volcanic eruptions and erosion caused by wind and water. Uplifted rock, for example, can result in dome like structures or arched folds called anticlines. These often serve as receptacles for hydrocarbons. The probability of discovering oil is greatest when such structures are formed near a source rock.
In addition, an overlying, impermeable rock must be present to seal the migrating oil in the structure. The oldest oil-bearing rocks date back more than 600 million years; the youngest, about 1 million. However, most oil fields have been found in rocks between 10 million and 270 million years old. Subsurface temperature, which increases with depth, is a critical factor in the creation of oil. Petroleum hydrocarbons rarely are formed at temperatures less than 150 degrees Fahrenheit and generally are carbonized and destroyed at temperatures greater than 500 degrees. Most hydrocarbons are found at "moderate" temperatures ranging from 225 to 350 degrees.
It is the particular crude oil's geologic history that is most important in determining its characteristics. Some crude's from Louisiana and Nigeria are similar because both were formed in similar marine deposits. In parts of the Far East, crude oil generally is waxy, black or brown, and low in sulfur. It is similar to crude's found in central Africa because both were formed from non marine sources. In the Middle East, crude oil is black but less waxy and higher in sulfur. Crude oil from Western Australia can be a light, honey-colored liquid, while that from the North Sea typically is a waxy, greenish-black liquid.
Many kinds of crude's are found in the United States because there is great variety in the geologic history of its different regions. Crude oil is a surprisingly abundant commodity. The world has produced some 650 billion barrels of oil, but another trillion barrels of proved reserves have yet to be produced. An additional 10 trillion barrels of oil resources await development, assuming the price of oil someday justifies production.
These resources include bitumen, shale oil and oil in existing fields that might be produced through enhanced recovery methods. Talk of crude oil oozes with superlatives. Not only was crude oil the basis of the world's first trillion-dollar industry, it also is the largest item in the balance of payments and exchanges between nations. And it employs most of the world's commercial shipping tonnage.
Crude oil may not be the panacea that snake oil claimed to be. But for 20 th century industrialized nations, it has proved to be more than good medicine. To me at least, I see it as the biggest fuel on which our society is created on. Some other contracts trading at the exchange are Heating Oil, Unleaded Gasoline, Natural Gas, Petroleum, Silver, and Gold.
At the NYMEX exchange the price quotation is in dollars and cents per barrel. Minimum price fluctuation is $ 0. 01 per barrel, ten dollars per contract. The maximum daily price fluctuation is $ 15. 00 per barrel, $ 15, 000 per contract, for the first two contract months. Initial back month limits of $ 1. 50 per barrel rise to $ 3. 00 per barrel if the previous day's settlement price in any back month is the $ 1. 50 limit. In the event of a $ 7. 50 move in either of the first two contract months, back month limits are expanded to $ 7. 50 per barrel above the limit in place, in the direction of the move. Trading Unit for crude oil is 1, 000 U.
S. barrels, that would be 42, 000 gallons. The trading hours are 9: 35 A. M. - 3: 20 P. M. (New York Time). The last trading day is at the close of business on the third business day prior to the 25 th calendar day of the month preceding the delivery month.
Deliveries take place along the Texas U. S. Gulf Coast at one of several qualified marine terminals; by pipeline into designated pipeline connections; or out-of-storage. The difference between hedgers and speculators is that hedgers insure against the movement of the market in the wrong direction. On the other hand speculators are people who buy or sell commodities, hoping market will be favorable to their gambles. Some hedgers that would be involved with my commodity would be oil field owners.
Chicago commodity exchange is futures market where crude oil, coffee, and soy bean are all traded on. The futures market is different from a stock market in the sense that a futures market is a commodity that you own and trade that will be delivered to you at a future time. In a stock market on the other hand you own and trade a part of a company. Name Farnaz Kermaani Commodity Crude oil Trading Firm Merrill Lynch June 99 Name Farnaz Kermaani Commodity Crude oil Trading Firm Merrill Lynch June 99 Name Farnaz Kermaani Commodity Crude oil Trading Firm Merrill Lynch June 99 Date Economic Factors & Effects on Supply, Demand, Price May 4 Fairly good weather which can result in the dwelling of crude oil to be successful.
There for their will be a descent supply and more for people to supply increasing the price of the crude oil May 5 Not much rain or any other negative weather occurring to shift the temperature of the day but their was a somewhat cloudy day resulting in the somewhat bad weather May 6 The weather occurring to day was some what flaky in the sense of high winds their for the weather is bad and the temperatures fall dramatically their for the stock market drooped May 7 The day was somewhat dry and the continue throughout the world. The continued temperature of this weather was what resulted in the stock market went down and resulted in the weather. May 8 There is some troubles going on in the middle east that can result in the stock market settlement price that is now lowered in the stock market by a rather big way May 11 There is no important economic factors in the news. Market price should remain stable May 12 There is more of the middle east situation going on so the same reaction is taking place in the market once more as the say two days ago May 13 There is no major news that applies to economic factors there for resulting May 14 The weather was rather good their for the crude oil mining was in a rather stable mood that resulted in a supply decrease and a higher market price for my commodity May 15 The temperatures was at a rather high compared to usual resulting in the dwelling of crude oil that is in the supply and demand shifting of the charts May 18 The dry conditions continue throughout the states that continues the dryness could hurt the mining of the crude oil. With a possible drop in the supply and an increase in demand May 19 Much of the mining to day was good because of the bad weather factors that resulted in the demand and the supply of the crude oil commodity futures May 20 There is some troubles going on in the middle east that can result in the stock market settlement price that is now lowered in the stock market by a rather big way May 21 The day was somewhat dry and the continue throughout the world. The continued temperature of this weather was what resulted in the stock market went down and resulted in the weather.
May 22 Fairly good weather which can result in the dwelling of crude oil to be successful. There for their will be a descent supply and more for people to supply increasing the price of the crude oil Name Farnaz Kermaani Commodity Crude oil Trading Firm Merrill Lynch June 99 Trade 1: I bought a stock trade of crude oil on Monday May 4 at the market price of $ 17. 77. On Tuesday May 5 th I sold the Commodity for $ 17. 90. Trade 2: On Wednesday, May 6 ht, I opened another position buy game commodity at a low $ 17. 75. I sold my commodity on Thursday, May 7 th on the off set position o n the high for June at price $ 17. 77 Trade 3: bought one futures on May 8 th at the excellent price of $ 17. 73. The following day on May 11 I sold that crude oil future at the not to greatly decreased price of $ 17. 62 Trade 4: On Monday May 11 th I sold the commodity for the price of commodity at $ 17. 82 I also decided to buy another one of the offset positions in the price of the $ 17. 62.
On May thirteenth I sold the one commodity for the decreased price of $ 17. 65 Trade 5: On Thursday May 14 th I decided my features at the high risen price for the price of 17. 34 because the stock market was greatly so I bought one and unfortunately lost it the next day and the lowered price of $ 17. 30 Trade 6: I bought one crude oil commodity features on the date of Monday May 15 for the high price of $ 17. 39. To my dissatisfaction at an offset the next day the crude oil commodity was lowered to $ 17. 19 Trade 7: I bought six crude oil futures at an open market on Monday May 18 for the month of June at the price of $ 17. 19. I then sold the six features profitable futures the next day on Tuesday May 19 for the dramatically increase price of $ 17. 30 after a rise in the market on an offset. Trade 8: I bought two crude oil commodity futures on the market price of $ 17. 20 some what low so I could gain more profit. I then sold the two commodities that I had bought on Tuesday May 19 for more feature on the day of May 20 for the great market price of $ 17. 49 after a rise in the market place. Trade 9: I bought three crude oil commodity market futures after no decrease in the market price for the commodity crude oil on May 20 I decided to then sell all three the next day on May 21 at the lowered price of $ 17. 01 Trade 10: I bought a on May 21 six crude oil futures each at $ 17. 0.
my crude oil commodity in the market place after a rise in the stock market to a price of $ 17. 21 for this reason I sold all six on May 22. Name Farnaz Kermaani Commodity Crude oil Trading Firm Merrill Lynch June 99 Trade Date Position Buy Sell Price Loss Profit/Loss 5 / 5 Offset 1 $ 17. 90 + 0. 13 +$ 535 5 / 7 Offset 1 $ 17. 77 + 0. 02 +$ 137 5 / 11 Offset 1 $ 17. 62 +. 11 +$ 313 5 / 13 Offset 1 $ 17. 65 - 0. 02 -$ 137 5 / 15 Offset 1 $ 17. 39 - 0. 05 -$ 241 5 / 18 Offset 1 $ 17. 19 - 0. 20 -$ 998 5 / 19 Offset 6 $ 17. 30 + 0. 11 +$ 313 5 / 20 Offset 2 $ 17. 49 +. 29 +$ 1, 210 5 / 21 Offset 3 $ 17. 01 -. 49 -$ 1, 996 5 / 22 Offset 6 $ 17. 21 -. 20 -$ 998 Crude oil, a commodity that ranges way beyond it's known definition. In my commodity challenge project I had learned an unbelievable amount. Through the trading period results I learned about the history of the stock market of crude oil. I also learned about how important crude oil is to our society and how our lives all depend on crude oil. I also learned about what a future is and how they work.
I am more knowledgeable know in the area of trading and how to make profits. Though I did not come out with a profit on the trade-author activity I still learned for future cases how to go about approaching it. In the supply and demand I learned about how less supply reaches towards higher prices and how more demand does so too. I learned what the equilibrium price is and about the market place.
I learned about how the price of crude oil is established through it's supply and demand factors. My favorite part of the commodity challenge I would have to say was getting to know my commodity because I got to get more creative of how to approach the report style and I got to put my own twist to it. It was also fun to make the charts that had to deal with what I wanted to talk about. Overall all parts of the commodity challenge were exciting and I learned a lot. &# 61623; Encarta Encyclopaedia, Petroleum, Microsoft, 1994 + 1995, Los Angeles. &# 61623; James W. Skelton, Jr. , Potential Effects of the International Sales Convention on U. S.
Crude Oil Traders, 9 Hous. J. Int'l &# 61623; The New Grolier Multimedia Encyclopaedia, Petroleum, Grolier Inc. , 1993, New York. Rick Wilkinson, Speaking of Oil and Gas, BHP &# 61623; Petroleum, 1995, Melbourne. &# 61623; Tom Gruner and Lisa Edwards, Gruner and Edwards on the Carriage of Crude Oil by Sea, William Collins Sons & Co, 1987, London. &# 61623; James Atkins, Pipelines and Tankers of OPEC, Hennerwood Publications Ltd, 1993, New York. &# 61623; web &# 61623; web i didnt paste right but i hope people could still get help out of it Bibliography: &# 61623; Encarta Encyclopaedia, Petroleum, Microsoft, 1994 + 1995, Los Angeles. &# 61623; James W. Skelton, Jr. , Potential Effects of the International Sales Convention on U. S.
Crude Oil Traders, 9 Hous. J. Int'l L. 95 - 110 (1986) e 259 &# 61623; The New Grolier Multimedia Encyclopaedia, Petroleum, Grolier Inc. , 1993, New York. Rick Wilkinson, Speaking of Oil and Gas, BHP &# 61623; Petroleum, 1995, Melbourne. &# 61623; Tom Gruner and Lisa Edwards, Gruner and Edwards on the Carriage of Crude Oil by Sea, William Collins Sons & Co, 1987, London. &# 61623; James Atkins, Pipelines and Tankers of OPEC, Hennerwood Publications Ltd, 1993, New York. &# 61623; web &# 61623; web
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Research essay sample on Crude Oil Merrill Lynch
