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HISTORY Oil in general has been used since early Human History to keep fires ablaze, and also for Warfare . Its importance in the World Economy evolved slowly. Wood and Coal were used to Heat and Cook with, while Whale Oil was used for Lighting . Whale oil however, produced a black, smelly, thick liquid known as Tar or Rock Oil and was seen as a substance to avoid. When the Whaling industry hunted the Sperm Whale almost to extinction and the Industrial Revolution needed a Fuel to run Generators and Engines , a new source of Energy was needed. In the search for new products, it was discovered that from Crude Oil or petroleum, kerosene could be extracted and used as a light and heating fuel. Petroleum was in great demand by the end of the 1800's, forcing the creation of the petroleum industry. INFRASTRUCTURE The petroleum industry can be divided into two broad groups: ''upstream'' producers (exploration, development and production of crude oil or natural gas)and ''downstream'' transporters ( Tanker , Pipeline Transport ), Refiners , retailers, and consumers. Oil Companies are generally categorized as ''"majors"'' and ''"independents" or "jobbers."'' Most upstream work in the Oil Field or on an Oil Well is Contract ed out to drilling contractors and oil field service companies. IMPACT Petroleum is a non-renewable Natural Resource and the industry is faced with the spectre of the inevitable eventual depletion of the world's oil supply. By the very definition of Non-renewable Resources , Oil Exploration alone will not stave off future shortages of the resource. Resource economists argue that oil prices will rise as demand increases relative to supply, and that this will spur further exploration and development. However, this process will not increase the amount of oil in the ground, but will rather temporarily prolong production as higher prices make it economical to extract oil that was previously not economically recoverable. The Hubbert Peak theory, also known as peak oil, is an influential theory concerning the long-term rate of conventional oil production and depletion. REFERENCES
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