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UNIT 1
                  THE HISTORY OF PETROLEUM INDUSTRY

                  Petroleum is a mixture of naturally occurring hydrocarbons
           that  may  exist  in  the  solid,  liquid  or  gaseous  states,  depending
           upon  the  conditions  of  pressure  and  temperature  to  which  it  is
           subjected. Virtually all petroleum is produced from the reservoir in
           either liquid or gaseous form, and commonly, these materials are
           referred to as either crude oil or natural gas, depending upon the
           state  of  the  hydrocarbon  mixture.  Petroleum  consists  of
           approximately 11-13 wt % hydrogen and 84-87 wt % of carbon.
           Traces of oxygen, sulphur, nitrogen and helium may be found as
           impurities  in  crude  oil.  Crude  oils  obtained  from  different  oil
           reservoirs  have  widely  different  characteristics.  Some  are  black,
           heavy, and thick like tar, and others are brown or nearly clear with
           low viscosity and low specific gravity.

                  Crude oil and Natural gas
                  Crude  oil is  a  mixture  of  hydrocarbons  that  exists  as  a
           liquid in natural underground reservoirs and remains a liquid when
           brought to the surface. Petroleum products are produced from the
           processing of crude oil  and other liquids at petroleum refineries,
           from  the  extraction  of  liquid  hydrocarbons  at  natural  gas
           processing plants, and from the production of finished petroleum
           products at blending facilities. Petroleum is a broad category that
           includes  both  crude  oil  and  petroleum  products.   The
           terms oil and petroleum are sometimes used interchangeably.
                  Crude  oil  and  natural  gas  are  nonrenewable  sources  of
           energy (fossil fuels). Crude oil is a mixture of various hydrocarbon
           compounds  and  other  materials;  usually  containing  about  84%
           carbon;  14%  hydrogen;  1  to  3%  sulfur;  and  nitrogen,  oxygen,
           heavy metals, and salts that total less than 1%. Crude oil can range
           from light, volatile oils that are highly fluid to nonfluid oils (e.g.,
           residual oils, heavy crude oils, and some high paraffin oils). When
           it is brought to the surface, crude oil may also contain natural gas
           and  product  fluids  such  as  salt  water  (i.e.,  produced  water)  and
           both  dissolved  and  suspended  solids.  The  natural  gas  is  either


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