Oil and Gas
Business Lesson 6
New Vocabulary
petroleum
нефть, бензин
crude oil
сырая, неочищенная нефть
sediment
осадочная порода
immense
огромный, безмерный, необъятный
reservoir
резервуар, хранилище
oil field
месторождение нефти
pump up
качать
refine
очищать, улучшать
gasoline
бензин, газолин
kerosene
керосин
byproduct
побочный продукт
fuel
топливо, горючее
coal
уголь, каменный уголь
pollution
загрязнение окружающей среды
downside
недостаток, обратная сторона
carbon dioxide
углекислый газ
greenhouse effect
парниковый эффект
global warming
глобальное потепление
devastating
разрушительный, опустошительный
supply
поставка, запас
barrel
баррель
shortage
нехватка, дефицит
oil refinery
нефтеперерабатывающий завод
consuption
потребление
carbon-based fuels
углеводородные виды топлива
petrochemical products
нефтехимическая продукция
synthetic rubbers
синтетический каучук
jet fuel
топливо для реактивных двигателей
chemical fertilizers
химические удобрения
derivatives
производные
low-carbon electricity
низкоуглеродное электричество
upstream
разведка и добыча нефти (как сегмент нефтегазового сектора)
downstream
переработка нефти и сбыт нефтепродуктов (как сегмент нефтегазового сектора)
detergent
моющее средство
pipeline
трубопровод, нефтепровод
stable substance
стабильное вещество
sales point
пункт реализации
barge
баржа
to dissipate
рассеиваться
LNG (liquefied natural gas)
СПГ (сжиженный природный газ)
contract arrangements
договорные соглашения
Nymex (New York Mercantile Exchange)
Нью-Йоркская товарная биржа
ICE Futures
Фьючерсы Межконтинентальной биржи
WTI (West Texas Intermediate)
нефть марки «WTI» (добывается в Техасе, США)
North Sea Brent
североморская смесь «брент»
benchmark
эталон (для сравнения марок нефти)
crude blend
смесь нефтей разных марок
Dubai crude
нефть марки «Дубаи»
exhaustible
исчерпаемый, истощимый
spot transactions
сделка за наличный расчет
oil&gas prospecting/oil&gas exploration
разведка нефти и газа
Oil Price (per barrel)
цена нефти за баррель
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Listen about the history of oil
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Read the following article and practise new words and expressions
10 Biggest Oil Companies
Oil remains a dominant source of energy worldwide, fueled by giant oil corporations that feed billions of barrels daily of petroleum products to energy thirsty economies. All this despite rising public concerns about climate change and moves to reduce the use of carbon-based fuels such oil. To be sure, oil prices have suffered from extreme volatility in 2020 as a result of the COVID-19 pandemic and exacerbating trade tensions. But many of the world's leading oil companies still have generated significant revenue. We look below at the 10 biggest oil companies by 12-month trailing (TTM) revenue. While Chinese and U.S. companies make up half of the 10 companies, major players also are from Saudi Arabia, Europe and Russia. This list is limited to companies which are publicly traded in the U.S. or Canada, either directly or through ADRs. Some foreign companies may report semiannually, and so may have longer lag times. All data provided by YCharts and as of September 9, 2020.

#1 China Petroleum & Chemical Corp. (SNP)

China Petroleum & Chemical is a producer and distributor of a variety of petrochemical and petroleum products. The company's products include gasoline, diesel, kerosene, synthetic rubbers and resins, jet fuel, and chemical fertilizers, among other related offerings. Also known as Sinopec, China Petroleum & Chemical is among the very largest oil refining, gas, and petrochemical companies in the world.

#2 PetroChina Co. Ltd. (PTR)

Oil and gas company PetroChina is engaged in oil products exploration, development, production, and sales. The company's primary products include crude oil, petrochemical products, and their derivatives. PetroChina is the exchange-listed branch of the Chinese state-owned China National Petroleum Corporation and is counted among the largest oil and gas producers in business today.

#3 Saudi Arabian Oil. Co. (Saudi Aramco)

Saudi Aramco, which went public in 2019, is one of the largest companies in the world across all industries, as well as among the very largest global oil companies by revenue. This company is unusual in this list in that its stock does not trade in the U.S. While Investopedia would not normally include non-U.S.-listed stocks, Saudi Aramco is such a major player in the oil industry that a list of the biggest oil companies would not make sense without including it.

#4 Royal Dutch Shell PLC (RDS.A)

Based in the Netherlands, Royal Dutch Shell explores, produces, and refines petroleum through its subsidiary companies. In addition to operating gas stations around the world, Shell produces and sells fuels, lubricants, and other chemicals.

#5 BP PLC (BP)

British oil company BP is involved in oil and petrochemical exploration, production, and supply. The company refines and sells petroleum products including chemicals such as acetic acid, ethylene, polyethylene, and terephtalic acid. BP also generates solar energy for sale as well.

#6 Exxon Mobil Corp. (XOM)

Exxon Mobil is a global petroleum and petrochemicals business. The company explores, produces, trades, transports, and sells oil and natural gas. It's also involved in electrical power generation through coal and minerals operations. Among the many products that Exxon Mobil sells are fuel, lubricants, and other petroleum-derived chemicals. After Saudi Aramco, Exxon Mobil is the second-largest oil company in the world by market value even though Exxon Mobil is more than 10 times smaller than the Saudi Arabian company.

#7 Total SE (TOT)

Total, headquartered in France, explores and produces crude oil, natural gas, and low-carbon electricity. Total also refines and produces petrochemical products. The company owns and operates gas stations throughout Europe, the U.S., and Africa. Like most of its large competitors, Total is an integrated energy company that engages in all aspects of the oil and gas business, from exploration through sale.

#8 Chevron Corp. (CVX)

Chevron is an integrated oil company with primary business operations both upstream and downstream. The upstream division is involved in the exploration and production of oil and natural gas, while the downstream operations cover refining, transportation, and marketing. Chevron is also involved in chemical and mining operations as well as non-energy activities such as technology development.

#9 Marathon Petroleum Corp. (MPC)

Marathon is a crude oil refining company. Serving customers across the U.S., the company refines, supplies, transports, and sells petroleum products. Marathon is leaseholder or owner of thousands of miles of petroleum pipelines and has been the owner of the Speedway gas station chain. In early August, Marathon agreed to sell Speedway and its 4,000 outlets to Japan's Seven & i Holdings, for for $21 billion. The Japanese retailer is owner of 7 Eleven.

#10 PJSC Lukoil (LUKOY)

Russian oil and gas company Lukoil conducts exploration, production, refining, transportation, and marketing of petroleum products primarily in the Siberian region. The company distributes oil and petroleum through an extensive pipeline system and by ship, serving customers in both Russia and the U.S.
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An expert describes what happens to a barrel of crude oil. Listen.
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Read the following article.
Marketing of oil and gas


After hydrocarbons have been produced and kept in storage tanks, they must be sold. There are different ways to sell oil and gas. Crude oil is a relatively stable substance (compared to gas) and can be easily transported to the sales point by pipeline, truck, barge or railway container. In most onshore fields oil can be sold directly from the wellhead once the operations enter the production phase.

Natural gas has the ability to dissipate into the atmosphere, and that's why keeping the appropriate pressure in the container while transporting the gas is a crucial issue. Unlike liquids, gas can be compressed and therefore large quantities can be kept and transported in special containers; gas can even be liquefied. LNG (liquefied natural gas) technology allows decreasing gas volume considerably for transportation by cooling it at a temperature of — 160 C.

On the global scale, oil is sold under a variety of contract arrangements and/or in spot transactions. Oil prices are highly influenced by two of the biggest oil exchanges: Nymex in New York and ICE Futures in London. These exchanges control global oil prices via oil futures contracts on two grades of crude oil — West Texas Intermediate and North Sea Brent. Major oil producers including Russia and Nigeria use Brent as a benchmark for pricing the crude oil they produce. Brent is a key crude blend for the European market. The third oil exchange is Dubai Mercantile Exchange (DME), trading Dubai crude.

In general crude oil is priced by a standard formula: base price (usually based on a market indicator) plus or minus a quality adjustment. Oil price is also greatly influenced by the fact that oil is an exhaustible resource.

As to natural gas prices, they are primarily tied to oil prices since natural gas is the main alternative to crude oil.

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Dr Marion Bell is an expert on the world consumption of oil. Listen to an extract of a radio interview where she was asked about trends in oil consumption.
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Watch the video and answer the questions
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Your homework is to write the summary of this topic, minimum 15 sentences, using new words and expressions
Write your own beautiful success story!
Translate the following sentences into English
the first set is mandatory
Compare your answers to the answer key
Audio 1 answer key
  1. building, making ships waterproof
  2. mid-nineteenth century
  3. oil for lamps for lighting their homes
  4. when the automobile (car) was invented
  5. fuel for cars, lorries, aircraft, heating and cooling of buildings, plastics, medicine, fibres and detergents
Audio 1 tapescript
We know that people used oil about 4000 years ago in the Middle East. They used it on the outside of boats and ships. This was to make them waterproof. They also used it when they were building. They put it between the building stones. They found the oil in small pools. There was also oil along riverbanks. It simply seeped from below the ground to the surface and collected there in pools.

At about the same time people in Egypt and Japan used oil to light their homes. They also used oil as medicine to treat several illnesses. And we also know that bitumen was used on the early streets of Baghdad. Bitumen is a black almost solid form of oil. People drilled oil thousands of years ago in China. The interesting thing is that they didn't want oil. They wanted salt. The oil was isn't important, so they threw it away.

But in the middle of the 19th century people realized how important oil could be. They found they could distill oil to produce kerosene, which they burned in oil lamps to light their homes. This happened in several different countries: in America, Russia and Romania.

People didn't use oil as a fuel for transport for many years. That changed when the automobile (the car) was invented. When they distilled oil to make kerosene for lamp oil, they also produced petrol or gasoline. And this became a very important product. The car was the real start of the oil industry.

Today oil is used for lots of things: fuel for cars, lorries, aircraft, heating and cooling of buildings. And it's also used in many industrial processes. For example, it's used to make plastics, medicine, fibers and detergents.
Answers to the text 1 questions
  1. There are over 200 oil and gas companies in the world. NOT GIVEN
  2. Oil prices have suffered from extreme volatility in 2020 as a result of the COVID-19 pandemic and exacerbating trade tensions. TRUE
  3. Many of the world's leading oil companies haven't generated significant revenue in 2020. FALSE
  4. The PetroChina's primary products include gasoline, diesel, kerosene, synthetic rubbers and resins, jet fuel, and chemical fertilizers, among other related offerings. FALSE
  5. Saudi Aramco is one of the largest companies among the very largest global oil companies by revenue. TRUE
  6. The Shell name and logo is tied to the "Shell" Transport and Trading Company - it's founder's father had originally created a business selling seashells to collectors. NOT GIVEN
  7. BP generates solar energy for sale. TRUE
  8. Russian oil and gas company Lukoil conducts exploration, production, refining, transportation, and marketing of petroleum products primarily in the Siberian region. FALSE
Audio 2 answer key
  1. black, green or clear
  2. two billion
  3. eighteen million
  4. four thousand kilometres
  5. over a million
  6. petrol (1), diesel (2), jet (3), LPG (liquefied petroleum gas) (4)
  7. ammonia, bitumen, plastics, chewing gum, deodorant
Audio 2 tapescript
When it comes out of the ground crude oil is black, green or even clear. It's not very useful in its original state, so it has to be refined in an oil refinery. It travels there by water in a tanker or by pipeline. 2 billion tons of oil travel by tanker each year across the seas. They carry 18 million barrels of oil through the straits of Hormuz in the Gulf every day. Pipelines vary in length. The longest pipeline in the world is the Druzhba pipeline. That runs 4000 kilometers from southeast Russia to the Czech Republic and Germany. It can transport over a million barrels each day.

When we measure oil, we usually talk about barrels. A barrel of oil contains 42 US gallons, but it can make 44 gallons of petroleum products. The main use of crude oil is to produce fuel for energy. After it reaches its destination crude oil is changed into different petroleum products. Just over 19 gallons become petrol or gasoline. Another 9 gallons become diesel. And four gallons are used as jet fuel. The rest is turned into heavy fuel oil, heating oil and LPG (that liquid petroleum gas). The last 7 gallons are changed into other products.

This amazing range of products made from petroleum ranges from ammonia to the bitumen (we put on our roads) to plastics. But there are other products whose connection with petroleum is hard to imagine. For instance, the gum you chew and the deodorant you use may both use petroleum.
Answers to the text 2 questions
  1. storage tanks
  2. sales
  3. pipeline
  4. wellhead
  5. containers
  6. cooling
  7. futures
  8. benchmark
  9. European
Audio 3 answer key
  1. 2006 (1), 17% (2), 3.4% (3), doubled (4), 120 (5)
  2. 3 (transportation), 1 (domestic), 4 (commerce), 2 (industry)
  3. a) more than half, b) over 70%
  4. In China and India, most oil is used for industry.
  5. He believes that China and India will probably use more oil for transportation as more and more people buy cars.
Audio 3 tapescript
INTERVIEWER: Are people using more oil?

DR. BELL: Yes, oil consumption keeps rising. Between 1994 and 2006 it went up 1.7% a year. In fact, in one year between 2003 and 2004 it increased by 3.4%. The main reason for this increase is the development of China and India. In China, for instance, consumption doubled between 1996 and 2006 and it has grown by 8% each year since 2002. By 2030 it is expected to rise to about 120 million barrels a day but much will depend on the world economy.

INTERVIEWER: What are the main uses of oil?

DR. BELL: Well, in order of importance the full principle uses are transportation, domestic, you know, for heating people's homes, commercial and in fourth place industrial. But there are big differences between countries. Globally, over half of all the oil we use is for transportation, but in the US this goes up to 70%, and in China and India most oil is for industry. Of course, this is probably going to change as more people in these countries buy their own cars. One day transportation will become their principle reason for oil consumption as elsewhere. So, the situation is changing all the time?
Video answer key
  1. Unprocessed
  2. A seashell
  3. Underground
  4. Oil occurs naturally as a liquid; coal is a solid.
  5. C
  6. Greenhouse gases are released when it's burned
  7. Limited
  8. The United States consumes far more oil than any other country in the world
  9. A large tropical storm in the Gulf of Mexico
  10. Corn
The first set
  1. The price of OIL is spiking as a result.
  2. But it such as GASOLINE for the car.
  3. At present over 90,000 people receive free COAL.
  4. They noted that a premium of 5 cents per BARREL was the most that contractors could reasonably obtain.
  5. Other items, such as KEROSENE for cooking, are unavailable.
  6. The ingredient is CARBON DIOXIDE.
  7. These include SHORTAGE of skills, funds and appropriate infrastructure.
  8. We all recognize the IMMENSE potential in this field.
  9. The PIPELINE was designed to withstand a power outage.
  10. Yemen, in particular, began exporting LIQUEFIED NATURAL GAS in November 2009.
The second set
  1. The battery in this sense, is the CRUDE OIL.
  2. But I brought it back, figuring out a way to REFINE it.
  3. Instead it gave us POLLUTION and slums.
  4. I keep only a small SUPPLY for the purpose of relaxation.
  5. Anger is a BYPRODUCT of unrealized expectations.
  6. The GREENHOUSE EFFECT is a worldwide phenomenon, only global solutions can help.
  7. The island is host to an OIL REFINERY and several large gas holders.
  8. Swedish forests constitute a large carbon RESERVOIR.
  9. Visit an exclusive SALES POINT or Customer Service Center.
  10. To do that we've got a bit of a performance BENCHMARK.
The third set
  1. This SEDIMENT is 100 percent made up of the shells of microscopic plants.
  2. Put a plant there, PUMP UP river water for the fish farm.
  3. Luckily, that's the only DOWNSIDE.
  4. I wanted to create a DEVASTATING explosion to get back my mom.
  5. For environmental reasons petrol and FUEL prices are relatively high.
  6. I'm glad GLOBAL WARMING never happened.
  7. The materials address the problems posed by own account CONSUMPTION.
  8. In 1947 a major OIL FIELD was discovered near Edmonton.
  9. Development in the region is mostly based on the exploitation of EXHAUSTIBLE natural resources.
  10. Today's OIL PRICE is also linked to anticipated future interest rates.
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