Import of Crude Oil in Pakistan
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At first, black oil bubbled from natural springs in many localities such as Western Pennsylvania, but no one knew how to extract it until the interesting if not persistent Edwen drake constructed the first make-shift oil derrick in 1859 in that same area. His well was 70 feet deep and produced a reported 15 barrels per day. The surrounding area quickly boomed, and the modern oil industry was born.
According to the Canadian Association of Petroleum Producers online, crude oil is a natural liquid that is made up of mainly hydrogen and carbon molecules and is usually discovered deep underground. The viscous substance is formed from the fossilization of plants and animals. Fossilized plant and animal matter (dinosaurs reportedly providing much of this) holds many trapped hydrogen and carbon molecules, but the chemical breakdown of these elements can take millions of years as they need to be heated and pressurized to create the substance we call oil.
World War II, the Middle East became a major supplier of oil and during this period of time from the end of World War II through to the end of the 1960s. During this
time, the price of crude oil went up $.50 and considering that it was only $2.50 to start out with, many people would consider that to be a considerable increase. In reality, it was simply keeping up with the effects of inflation. Another example of this occurred from the late 1950s through to 1970. The price of oil per barrel at this time was roughly 3 dollars.
This was especially felt for the first time during 1972 whenever the Yom Kippur war began. Over the next two years, the price of a barrel of oil increased over 400% from three dollars a barrel to $12 a barrel. In an effort to show support for Israel, the United States and many of the countries of the Western world started the trade embargo which drastically reduce the amount of oil that came into these countries.
Additional problems were felt during the Iran, Iraq crisis that...