CRUDE OIL HISTORICAL DEVELOPMENT 1990 The price of crude oil spiked with the lower production during Kuwaiti invasion by Saddam Hussein forces 1994 – The Gulf War to liberate Kuwait, crude oil prices declined. In 1994, the inflation adjusted oil price reached the lowest level since 1973 The United States economy was strong and the Asian Pacific region was booming which extended into 1997. From 1990 to 1997, world oil consumption increased 6. 2 million barrels per day.
Declining Russian production contributed to the price recovery. Between 1997 & 1998, the crude price spiralled downward in response to economic risis in Asia and increased oil production, OPEC failed to pre-empt such adverse impact. Prices began to recover in early 1999 to above $25 per barrel. Crude oil prices plummeted in the wake of September 1 1, 2001 terrorist attacks. Quota reduction by combined OPEC/Non OPEC produced desired effect with oil prices moving into the $25 range by March 2002.
In 2003, The loss of production capacity during military action in Iraq and strikes action in Venezuela was largely responsible for prices in excess of $40-$50 per barrel 2004 – Oil prices reach $49 per barrel in August, due to news that Russia’s biggest oil- xporting firm, Yukos, multi-billion-dollar tax debt case In 2008 – U. S. recession the oil price continued to soar to a record high $145. 29 on July 3, 2008.
In the face of recession and falling petroleum demand the price fell throughout the remainder of the year to the below $40 December ADVANCEMENT IN TECHNOLOGY 1990s – Introduction of near-bit sensor, which gathers data from Just behind the drill bit and transmits it to the surface. 1992 – 4D Seismic technique survey for more precise seismic imaging, allowing oil to be located more precisely. 1993 – Direct Seismic Indicators – used to search for hard to find hydrocarbon deposits 1999 –
Radar Imaging for detecting the presence, position and motion of oil deposits 2001 – Refraction Convolution Section – Interpretation of shallow seismic refraction data. 2002 – Ocean Bottom Cable – Seismic survey in areas of obstruction or shallow waters inaccessible to ships. 2004 – Surface Array Passive Seismic999 – A fairly new technology, Radar Imaging, sends directional pulses of electromagnetic energy and detects the presence, position and motion of oil and gas deposits by analyzing the portion of the energy reflected from oil and gas deposits New tools and techniques to reduce the costs and risks of drilling WEFED
The combined efforts of private industry, the Department of Energy, and national laboratories such as Argonne and Lawrence Livermore result in the introduction of several new tools and techniques designed to reduce the costs and risks of drilling, including reducing potential damage to the geological formation and improving environmental protection. Among such tools are the near-bit sensor, which gathers data from Just behind the drill bit and transmits it to the surface, and carbon dioxide/ sand fracturing stimulation, a technique that allows for non-damaging stimulation of a natural gas formation.