Crude oil, also known as petroleum, is a type of naturally occurring, unrefined fossil fuel derived from organic materials such as the remains of dead plants and animals over millions of years. It is a complex mixture of hydrocarbons, which are compounds made up of hydrogen and carbon atoms.
Crude oil is typically found in underground reservoirs, usually in porous rocks such as sandstone or limestone. It is extracted through a process known as drilling, where wells are drilled into the earth’s surface to reach the oil-containing formations. Once extracted, crude oil is transported to refineries via pipelines, tankers, or trucks.
Due to its unrefined state, crude oil often appears dark and viscous. Its color can range from light yellow to black, depending on its composition and impurities. Different types of crude oil exist with varying properties, such as density, sulfur content, and viscosity.
Crude oil serves as a valuable commodity as it is the primary source for a wide range of products. When refined through a process called distillation, it yields various fuels such as gasoline, diesel, and aviation fuel. Furthermore, crude oil is a vital component for the production of plastics, lubricants, asphalt, and other chemicals.
The price of crude oil is, to a large extent, determined through market forces and geopolitical factors. It is a globally traded commodity, with prices often experiencing fluctuations caused by supply and demand dynamics, natural disasters, political events, or conflicts in oil-producing regions.
