Oil Prices and their Effect on Consumption

I want to talk about the connection between energy prices and demand for consumer goods such as automobiles. It turns out that people pay attention to oil prices when choosing what type of car they are going to buy.

According to a study in the Electricity Journal there is a predictable pattern of oil prices having a direct effect on the demand and consumption of automobiles.

the author of the study goes on to find that the reduction in demand for automobiles was not equal across all categories of cars.



“Hamilton argues, all car sales should have declined. What happened instead was a 25% reduction for gasoline intensive SUVs, compared to only a 7% reduction for other domestic car sales.”

So a major determinant in the choice of automobile rested heavily on oil prices at the time of purchase.

You can see here in this chart how oil prices effect so many aspects of the American economy. It makes sense that an increase in price would effect even the most indirect things in our economy.

So a more expensive commodity led to a dramatic change in behavior for the consumer. So making oil more expensive will change the consumers negative buying habits with regard to the impact on our environment.

What things do you find yourself buying less of when the price goes up?

How important is the gas mileage of the car you are thinking about purchasing?

How high would oil prices have to get for you to change your driving habits significantly?

Further reading: 

The International Society for Ecological Economics 

Oil Prices Over the Last Century

 

How Do We Get Oil?

Petroleum oil does not just appear in an instant. Oil companies have to pump oil out of the ground by making wells and drilling rigs. Once the wells are emptied, they have to be relocated into a new spot. For drilling rigs, most are set below the seafloor meaning many problems can occur. One of which include oil spills. Oil spills are damaging to the environment including the marine life. An interesting fact is that most oil that spills in the ecosystem is actually leaked from cars, airplanes and boats.

When companies retrieve the oil, the oil must be refined to be used as gasoline, diesel fuel and etc. Oil taken straight from the ground contains many hydrocarbons all mixed together and for it to be used in our everyday life we must separate them into their different types. During the process of oil refining, it creates air pollution releasing many toxins in the environment that are dangerous for our health and the ecosystem. The process of oil refining also adds to the greenhouse gases in the atmosphere and to global warming. All of which is bad for the environment causing mountain glaciers to melt and the rising temperatures. We need to stop using foreign oil and slowly move away from oil itself but that is not an easy solution since almost everything we use contains oil. How can we prepare for a world without oil?

Learn more:

http://www.dummies.com/education/science/environmental-science/what-is-the-environmental-impact-of-petroleum-and-natural-gas/

Is Oil Hiding In Your Food?

When we think of oil, we think of something that powers our cars and homes, not an ingredient in our food. However, oil is tucked in and hidden in many of the things we consume.

But WHY?

The use of petroleum, or commonly referred to by the food industry as mineral oil, is to keep foods fresh and mold free.

So why is petroleum in foods a cause for concern?

Some health scientists insist that petroleum is extremely dangerous for consumption, finding links to cancer and ADHD in children.

So what should you pay attention to in order to avoid consumption??

• Certain packaged baked goods
• Some chocolates (will be labeled as food-grade paraffin wax)
• The ingredient Olestra
• TBHQ or tert-butylhydroquinone (can be found in foods ranging from frozen chicken nuggets and pizzas to rice crackers and cookies
• Foods containing food-coloring
• Many painkillers and vitamins
• Food additives

Reference: https://www.petro-online.com/news/fuel-for-thought/13/breaking-news/what-foods-contain-petroleum/37415

Your Crude Oil Consumption

How much crude oil do YOU use on a daily basis??? 

Short answer: More than you think. Oil is heavily relied on in people’s day to day life whether they are aware of it or not. The average American’s consumption of crude oil is a ballpark figure of 2.5 gallons a day, or 22 barrels a year. Drive a car? Transportation is the number one factor responsible for the most consumption of crude oil daily. Frequently fly on an airplane? Add about two thirds of a barrel to your annual consumption. Use electricity? The average American household’s use of crude oil to power the home averages out to 20 barrels annually. Drink bottled water? The bottled water industry alone is responsible for the use of 32 million barrels of oil a year.

So how can YOU cut down on your use of oil? 

Simple changes can combat your oil consumption. These changes can be as small as utilizing public transportation or investing in a reusable water bottle. No matter, it is time to take responsibility and start thinking about the amount of oil we consume.

Reference: http://oilprice.com/Energy/Crude-Oil/How-Much-Crude-Oil-Do-You-Consume-On-A-Daily-Basis.html

Peak Oil

 The Curves pictured here are known as Hubbert curves. They track the availability and production of scarce resources.








 I have done some research on the concept of peak oil. A man named Marion King Hubbard developed the theory of “peak oil” in the 1950’s. He used a series of mathematical equations to track and predict the availability and production of limited resources. One of the resources he studied was petroleum reserves. Given the known amount of reserves at that time, he predicted that the peak production of oil would be around 2005. Here is a website that goes into the background of the theory:

http://klemow.wilkes.edu/Hubbert.Curve.html

The curves representing American production of oil track closely to the Hubbert theory. The difference in the theory and the actual data is that production is lasting longer than predicted.

by:Eric Shull

Where to Begin with Eco-Cleaner

Nowadays there are so many “eco-friendly” products which are a positive representation of the human population becoming more aware of their impact on the planet. But which ones are better than others? Sometimes it can be hard to tell if it’s merely just a marketing and advertising ploy or if these products really do reduce one’s carbon footprint. Here are some questions you can ask yourself when you’re shopping for your next eco-friendly household product. 

1. Where do the ingredients come from? Are they naturally occurring materials or renewable resources? Renewable is even better! 
2. What are the byproducts of its production? For example, Vinyl is made from petroleum, which is a natural non-renewable resource. Its production is negative to our environment because it releases toxins into the atmosphere. 
3. How was the product delivered or installed? If it has to travel long distances to get to its final destination, then it’s not as good as something that was manufactured and sold locally. 
4. How is the product used? If it lasts a long time and doesn’t produce toxins or pollutants, then that’s a good sign!
5. Does the product contribute to health problems in animals, humans, or the eco-system? Not processed and natural tend to be better. Products tested on animals are negative because they pose potential health risks to them. 
6. How is the product disposed of? If it can’t be recycled or reused, then it’s probably not good, unless it being disposable doesn’t negatively affect the environment. 

If you remember these simple questions to ask yourself when you’re shopping and take a minute to analyze the product you’re needing to purchase, then you can have a great impact on our environment. By making careful and thoughtful consumer choices you can reduce the use of our non-renewable resources, like oil. 

Check out Tree Hugger’s list of 10 Eco-Friendly All Purpose Cleaners for more ideas and information!

Resources: 

http://greenercleaner.blogspot.com/2007/05/whats-eco-friendly.html

http://www.conserve-energy-future.com/25-green-eco-friendly-products.php

Ripple Effect: The Impact on Niger Delta

The Cost of Oil - The Atlantic 

An Overview

Beneath the blackened depths of Nigeria’s Niger Delta, there isn’t an ounce of uncontaminated water to be found.  In what was once covered with crystal blue water has slowly disintegrated into a dark body of oily muck – tarnished, burnt and crumbled by decades of contamination.  This eerily transformation is not without a catalyst.  Decades of oil spills have damned the once thriving Niger Delta into a hazardous wasteland – and water.  Despite cries of help, the damage on the Niger Delta is ongoing.  These destructive oil spills are optimized by 2014 documents that reported Royal Dutch Shell and ENI – two predominant oil companies – of leaking 204 and 349 spills respectively [1].  All in one calendar year.  Given this, it comes to no surprise that Nigeria was reported as having the highest oil spills in the world [2]. 

Nigeria has been riddled with decade long oil spills that have severely impacted its people and environment.  The oil pollution has damaged the Nigerian ecosystem - shutting down avenues for water and food resources in a country where such access is already severely limited.  It’s not only the living organisms that have suffered, but the severe human cost associated with oil pollution.  Hazardous pollutants create a dangerous predicament for the Nigerian community, families and children.  Illness, disease and other health effects are prevalent, where they are often worsened by the lack of health care in the country [3].  The Niger Delta acts as a glaring symbol of the human and ecological costs associated with oil spills.  One that provides a devastating reminder of the human impacts hat plague the entire country.  Yet, it also showcases the damage that confronts many countries, whose lands have been continually drilled for oil.  Whether it be the spillage from drilling or transport, the associated damage is profound [4].  

Price of Oil - Greenpeace UK

Niger Delta - National Geographic

Why it matters....

How does the Niger Delta relate to us?  The human cost of the Niger Delta is part of a large ripple effect.  One that circles back to an excessive need, reliance and use of oil.  While most would attribute oil with gasoline use, many of us are unaware of oil’s ubiquity in our everyday products.  These are the taken-for-granted products that are unconsciously used and sometimes abused.  They can be in the everyday trash bags we use, the disposable bags at the supermarket, our toothbrushes – even our shampoos!  Even as I type this blog post, I can identify the oil in my keyboard, monitor, the headphones I’m wearing and the speakers attached to my computer.  Oil is ubiquitous and hidden in the fabric of our everyday lives.  You would be hard-pressed to find something not made from oil, crude oil and petroleum [5].  As the need for oil increases, lands are continually drilled and a greater chance for destructive oil spillage is increased around the world. 

This aim of this post is not to guilt you from using oil products altogether.  It is also not meant to scare you from using products containing oil.  It is meant to be an eye-opening look at the ubiquity of such everyday products.  An effort to draw attention to our unconscious use of oil, crude oil and petroleum products.  At its core, the devastating and damaging oil spills in Nigeria showcases the sheer amount of oil being distributed around the world.  As it relates to the everyday products we use, individuals must gain a stronger awareness of hidden oil.  The costs are real and the future of oil scarcity is not inconceivable.  It’s important for individuals to be aware of these issues and of oil usage.  Only from awareness can we truly reflect on the hidden cost of oil and what it means.  A major cost? One would have to look no further than the utter decay of the Niger Delta to understand its sheer impact and why this matters. 

Direct links for further reading:

http://ngm.nationalgeographic.com/2007/02/nigerian-oil/oneill-text

http://www.greenpeace.org.uk/blog/climate/price-oil-shell-niger-delta-20111007

http://www.theatlantic.com/photo/2011/06/nigeria-the-cost-of-oil/100082/

https://www.amnesty.org/en/latest/news/2015/03/hundreds-of-oil-spills-continue-to-blight-niger-delta/

References and Resources:

[1] Nigeria: Hundreds of oil spills continue to blight Niger Delta. (2015, March 9). Retrieved from https://www.amnesty.org/en/latest/news/2015/03/hundreds-of-oil-spills-continue-to-blight-niger-delta/

[2] Umoru, H. (2012, November 14). Nigeria has highest oil spill in the world. Retrieved from http://www.vanguardngr.com/2012/11/nigeria-has-highest-oil-spill-in-the-world-senate/

[3] Edoigiawerie, C., & Spickett, J. (1995, May 2). The environmental impact of petroleum on the environment. Retrieved from https://www.ncbi.nlm.nih.gov/pubmed/12160434

[4] Spooner, A. M. (n.d.). Environmental impact of petroleum and natural gas. Retrieved from http://www.dummies.com/education/science/environmental-science/what-is-the-environmental-impact-of-petroleum-and-natural-gas/

[5] The hidden, but vast, world of petroleum products. (n.d.). Retrieved from http://www.oilandgasinfo.ca/hidden-vast-world-petroleum-products/

Niger Delta [Online image]. (2007). Retrieved February 1, 2017 from http://ngm.nationalgeographic.com/2007/02/nigerian-oil/oneill-text

Price of oil [Online image]. (2011). Retrieved February 1, 2017 from http://www.greenpeace.org.uk/blog/climate/price-oil-shell-niger-delta-20111007

The cost of oil [Online image]. (2011). Retrieved February 1, 2017 from http://www.theatlantic.com/photo/2011/06/nigeria-the-cost-of-oil/100082/