Norwegian Oil Boom or Burden - Add-on (Counts as 7+)

            Most people would love to have the dilemma facing the Norwegian government. So much money it doesn’t know what to do with it.  Since discovering oil in the North Sea in 1969, Norway has resisted spending all its profits frivolously. Instead in 1990 the Norwegian government decided to invest the oil profits into a sovereign wealth fund, known as the Government Pension Fund Global.  This fund specifically insures that all Norwegians have a pension waiting for them after they retire at the age of 67 years old. The good news, since Norway only has a population of a little over 5 million people each one of them is technically a millionaire as the fund “reached 5.11 trillion crowns, or ($931.87 billion).” (“Price”) Norwegians conservative government has much to consider as many think diversifying the current windfall into a few smaller funds might be advantageous.

            Since Norway seems to have much wealth to spare, this makes it an example to the rest of Europe that is struggling with large amounts of debt. Many of its European neighbors want to borrow money from the fiscally conservative nation. However Norway addresses this issue by investing the money from the fund abroad, instead of lending to other countries. This profits the Norwegians with wise investments and helps its neighbors to promote growth within their own countries’ economies, a win-win for both. Another side effect is that the Norwegian “oil wealth may have made the state reluctant to make reforms.” (“Norwegians”) Norwegian dairy farmers feel the emphasis on oil wealth has undermined the importance of their way of life.  Being so close to the Artic, it is necessary to keep the cows in heated barns and provide subsidies for farmers during harsh winters. Many of these benefits have been hard to come by as the government’s emphasis has switched to foreign investments and fiscal conservatism.  Another down side seems to be that Norwegians have seen a slide in the unemployment rate and a new reluctance to work, "One in five people of working age receives some kind of social insurance instead of working.” (“Norwegians”) While oil has certainly made the Norwegians richer, one wonders if all this new found wealth will degrade at a traditional hard working people.

            However for now the oil reserves in Norway do not appear to be running out as the 7th largest exporter of oil in the world. Their fund is still going strong with wise investments, “Profits and taxes from the oil and gas industry give the government oil fund $1 billion a week.” (“Price”) It is estimated that by the year 2020, the fund’s worth will be over $1 trillion dollars.  By investing the oil profits in non-oil funds the Norwegian Government Pension Fund Global managers ride out turbulence in the global market with a peace of mind knowing diversity is the key.  However, Norwegians know that someday the oil reserves will run out, but that is part of their plan, “Their mission, by government mandate, is slowly and carefully to build up wealth to help fund this country long after the oil and gas reserves run out.” (“Norwegians”) In the meantime, other nations have used the Norwegian fund as an example to set up their own sovereign funds, such as United Emirates and Dubai.  These countries need to approach their wealth with caution as well.  With great wealth come great responsibilities, for their governments through the investments they make, and the impact on its people.

Norwegian Oil rig that has made all Norwegians millionaires

Bibliography

Price, Matthew. "Norway: Is World's Largest Sovereign Wealth Fund Too Big?" BBC News. BBC, 09 Dec. 2013. Web. 13 Jan. 2014. <http://www.bbc.co.uk/news/world-europe-24049876>.

"Norwegians Become Crown Millionaires as Sovereign Wealth Fund Hits Benchmark." ABC News. ABC, 9 Jan. 2014. Web. 13 Jan. 2014. <http://www.abc.net.au/news/2014-01-09/all-norwegians-become-millionaire-shareholders-in-world27s-big/5191480>.

Process of Refining Oil - P#7

A How to Guide: Separating Crude Oil into Energy Byproducts.

What is Crude Oil?
Crude Oil or petroleum is unprocessed oil which comes from the ground. This raw material is a natural resource, given the name “black gold”. The chemical makeup of Crude oil consists of hydrocarbon molecules. Hydrocarbons by their nature contain a tremendous amount of energy.  Crude oil can be separated into many energy products through the process of Fractional Distillation.

Here is a step by step process by which Fractional Distillation separates these products into useful energy byproducts:

1.      Obtain crude oil from the source, such as an oil rig or derrick from oil field.

2.      Turn the furnace up to 400 degrees Celsius.

3.      Crude oil is desalted to remove inorganic salts, primarily sodium chloride.

4.      Steam heaters raise the temperature of the crude oil slowly.

5.      The crude oil enters the fire heated furnace raising the temperature to 400°C.

6.      The heated crude oil is routed to the fractioning tower, where it is separated into fractions of the different oil products.

7.      The fractions of products with the lower boiling points rise to the top.

8.      The fractions of products with the higher boiling points settle at the bottom.

9.      The fractions of product from top to bottom are as follows: gas, naphtha, gasoline, kerosene, diesel fuel, fuel oil, lubricating oil, paraffin wax, and asphalt.

Oil's Impact Poem - P#6

Oil, so many ways to reference your impact on us,

Fuel, lubrication, cosmetics, plastics, power and influence.

All from a neutral, non-polar chemical substance, viscous liquid,

That is hydrophobic, immiscible with water or water fearing,

I take you for granted when I am in my car steering.

Drip, Drip, Drip.

 

 

As my engine hums, and my car roars down the highway,

I wonder why we have not found an alternative renewable.

If we ran out of you tomorrow, would parting be sweet sorrow?

Time ticks away as each day we fill the air with carbon dioxide,

The suns’ radiation cooks our planet hotter and hotter.

Drip, Drip.

 

Our environment suffers, our world seems dirty, full of filth.

Accidents happen, to err is human, forgiveness divine. 

Animals, aquatic beings and beaches, once sublime,

Until disaster, oil spills like Deepwater Horizon make us think,

Oil, gasoline, and fuel at what price, to fill up my tank?

 

Drip, Drop. Stop.

Rockefeller Biography - P#5

          John Davidson Rockefeller the oldest son of six children, born on July 8, 1839, in the sleepy hollow of Richford, New York. The second oldest of his siblings, John showed remarkable traits as a focused student and obedient son. His father a con-artist, who frequently went on lengthy trips, had many affairs.  John Rockefeller went into the business field and learned to be a bookkeeper. He quickly got into the business field with his first partner Maurice B. Clark. Rockefeller would pursue oil as a businessman, owning his own refinery and soon naming his company Standard Oil. His company became a monopoly which totally overwhelmed the oil industry. Late in Rockefeller’s life he devoted himself to philanthropy. While John D. Rockefeller died on May 23, 1937, his net worth over $650 billion dollars by today’s standard, still ranks as one of the wealthiest people that ever lived.

          John D. Rockefeller, from an early age demonstrated excellent study habits excelling in mathematics and debate club.  His mother, Eliza, a devout Baptist taught him to be fair, conscientious, thrifty, and a good work ethic. His father, William or “Bill”, a con-man, and infrequent in the family’s life, taught young John to always get the better part of a deal. “Bill used to cheat his own children out of a deal to teach them to always be sharper than the other person.” (“John”)  John D. Rockefeller moved with his family to Cleveland, Ohio at the age of 16, where he got his first real office work as a bookkeeper for the produce company, Hewitt and Tuttle.  John learned all the parts of the business and in 1859, by age 20, purchased his own produce business with his partner Maurice Clark. By the end of his first year of business they had earned almost a half a million dollars.

          While John, by any measurement, found success at an early age, he continued to look beyond his current venture.  Seeing an opportunity in the early oil industry, since whale oil had become quite expensive, he purchased his first oil refinery in 1863 near Cleveland.  John Rockefeller never fought in the American Civil War as his brother Frank did, but “made large contributions to the Union to stay out of the army.” (“American”) By the end of the Civil War, John Rockefeller and his partners owned the largest refinery in the world by purchasing other smaller refineries in the Cleveland and New York areas. In 1870, Rockefeller formed the Standard Oil Company of Ohio, the largest company to ship oil and kerosene in the United States. He attempted to control the railroads by offering rebates to ship his oil instead of his competitor’s oil. John D. Rockefeller found himself in trouble with the press, the public, and lawmakers. He backed off for a short period, only to come back and buy up the competition, improve the efficiency of his business, and again offering secret deals and discounts on oil shipments.

          By the 1880s, Rockefeller dominated 90% of the oil refineries in the U.S. His business developed all kinds of oil based products such as tar, paint, and even petroleum jelly. He had influence of much of the railroad industry as he owned tanker cars, “but also lead the oil industry in a new system of oil pipelines for the purpose of transporting.” (“American”) John D. Rockefeller an innovator in law as well, created the first trust, the Standard Oil Trust in 1882. John and eight other trustees ran 41 companies in the trust, and Standard Oil continued to grow each year until 1911, becoming the most feared and richest corporation in the world. In 1911, the Supreme Court flexed political muscle finding Standard Oil of New Jersey in violation of the Sherman Antitrust Act.  Deemed a monopoly by the Supreme Court’s decision, Standard Oil split into 34 new companies. However, John D. Rockefeller and his stockholders received stock in all 34 companies. John in particular still held 25% of the stocks and ten years later the profits of the 34 companies increase his wealth five times to almost a billion dollars.
            John D. Rockefeller considered himself retired at the age of 56 years old in 1895, and turned to philanthropy. John, raised a Baptist, always gave 10% of his earnings to his church from the time of his very first job. As his income increased, he became increasingly more generous with his giving. “His wife Laura Spelman and her family were passionate abolitionists before and during the Civil War, and in turn John D. Rockefeller gave large amounts of money to African American educational institutions such as colleges and universities.” (“John”) He founded the Rockefeller Sanitary Commission in 1909 that lead to the eradication of hookworm in the United States. John became one of the greatest benefactors of medical science the world has ever seen. He created the Rockefeller Foundation in 1913 which started many medical schools like the University of Chicago, John Hopkins, Yale, Harvard, Columbia, Brown, Wellesley, Vassar, and even those in foreign countries like the Peking Union Medical College in China and the Central Philippine University. In total, during his lifetime, John D. Rockefeller donated more than $550 million dollars more than half of his entire wealth.

          All in all, John D. Rockefeller started from very humble beginnings, as poor as most during his early life with a less than desirable home life. However, his impact on American business, capitalism, the stock market, and our dominance in the world oil industry can all be traced back to John D. Rockefeller. His influence as a philanthropist set the example for many other wealthy men such as Andrew Carnegie, J. P. Morgan, and even the wealthy of today such as Sam Walton (of Walmart) and Bill Gates (of Microsoft). His great work ethic, drive, and generosity should serve as an example to all of us.

John D. Rockefeller

The Rockefeller Foundation 1913, He donated $550 million dollars more than half of his entire wealth.

Bibliography

"American Experience: TV's Most-watched History Series." PBS. PBS, 2012. Web. 12 Jan. 2014. <http://www.pbs.org/wgbh/americanexperience/features/biography/rockefellers-john/>.

"John D. Rockefeller Biography." Bio.com. A&E Networks Television, 2014. Web. 11 Jan. 2014. <http://www.biography.com/people/john-d-rockefeller-20710159>.

The Gym Life - P#4 Radical Revision: Fat Reduction

            As an active teenager leading a busy life between friends, family, school, and social activities; I look forward to going to the CVU workout gym after school as much as possible. Yes, finding contentment at a busy gym with loud music, noise of metal hitting metal, weights falling to the ground, and weights getting racked sounds unlikely, but I do. The best part about the CVU gym is that it’s a great mental break from school and it’s a stress reliever.
           
            The first thing you notice as you approach the gym is that you can see into the gym from the outside as it is lined with big windows all the way around. As you walk through the door, you smell that potent gym odor. I can only describe it as a mix between metal, sweat, and rubber. The distinct smell is soon replaced by the orchestra of clanging of metal, thuds of weights being dropped and the grunting of teenagers pumping iron. As you look down you will notice the bright vivid red floor that is a rubber like substance. On the left are the yellow cubbies for your bags. When the gym is crowded there won’t be any place for more bags, people then resort to the floor space below the cubbies. Plenty of times you’ll trip trying to get your bags as you attempt to be cautious of other people’s belongings.
  
            The camaraderie in the gym provides an atmosphere of belonging. The gym transforms into a social club, where friends hangout and encourage each other to get stronger or just release the stress of the day.  The gym provides a safe, drug-free, alcohol free zone where friends can push themselves physically and just hang out together. The bonds you form with the friends you work out are truly something. You receive compliments from each other, push each other, and joke around. Everyone is respected in the gym no one is mistreated. The fitness teachers are there to support you. They are there to maintain a safe place, give advice, and make sure injuries are minimal. Their supervision does not seem intrusive at all; in fact they offer good advice in a very supportive manner.

            I find contentment in the gym the only thinking required is how much weight, how many reps, and how far can I push myself today. Personal goals are set, as an individual challenges themselves to push beyond their limits. The benefits of physical activity can be measured in physical health, but the mental benefits can only be measured by how I feel when I am there in the gym. A calm and content feeling comes over me knowing I’m doing something for myself. Sometimes friendships are formed in the gym as strangers assist each other or “spotting” one another. It starts as a mutual respect, helping a “buddy” out, as they test their mettle. The gym builds confidence and through this confidence contentment for oneself forms as the gym provides a place to cast off the weights of school by piling on the weights on a bench press bar.

            It is a good feeling going somewhere in the school that homework doesn’t exist, textbooks are not required and there are no tests. The workout helps you feel a sense of accomplishment. When the day has been stressful or life seems out of your control, there is a sense of being in control to push yourself in the gym. It is physical, primitive and satisfying. The weights don’t talk down to you; they challenge you to see what you are made of.  There is no pass or fail, no A or F, and everyone leaves feeling a sense of accomplishment. The only grade a C for contentment, as I leave the gym ready to face another day in the life of a teenager in high school. 

Documentary Critique: History Channel’s “Black Gold: The Story of Oil” - P#3

            After viewing The History Channel’s “Black Gold: The Story of Oil”, which is a historical account of the impact that oil had on the United States from 1850 to the present, I was quite impressed by the detail and information revealed.  The documentary provided historical accounts, insightful information, and cause and effects that oil had on the United States during the 160 years.

            One of the most interesting historical accounts about the early discovery of oil pertained to the segment Edwin L. Drake. Drake, the founder of the first huge oil strike, and drilling of the United States, discovered the oil saturated ground of Titusville. It was interesting to learn that Drake never had a specific field of work, he was a railway worker, clerk, train conductor, express agent, and finally after having the luck of the draw was hired by George Bissell. George Bissell the owner of Seneca Oil paid him $1,000 a year to investigate the oil seeps on land owned by Seneca Oil. There was a lot more accountable information throughout the movie that made you understand how important oil was even back then.

            Perhaps the historical fact that was most eye opening was the creation of Standard Oil and how he took over the oil industry so quickly and easily overpowered his competitors. As Rockefellers Oil Empire swallowed up smaller oil companies the lack of competition caused turmoil as the price of oil gouged the consumers across the nation. The US Justice Department brought Standard Oil to court as a monopoly due to the Sherman Anti-Trust Laws. While this information was really insightful there were some details that were left out that disappointed me, such as the breakup of Standard Oil into 34 different small companies. Many of these companies would go on to form multinational corporations that we recognized today, Exxon, Chevron, and Shell to name a few. Standard Oil’s impact on future corporations fell short in this documentary as it was forgotten in the vast amount of information already shared.

            “Black Gold: The Story of Oil” showed how the US addiction to oil only grew after the discovery of kerosene. The documentary really shows the truth behind oil, it showed how kerosene addicted people because it made a great light source, after this was the internal combustion engine which made machines work, and finally was the invention of the car which used the internal combustion engine which is the most useful today.

            The documentary exposed the shady side of oil’s influence of US foreign policy. After World War II, in an attempt to contain Communism the US persuaded governments by buying the counties oil. As Americans’ consumption of gasoline, a derivative of oil, increased beyond our domestic production, it made the US dependent on imported foreign oil, thus making our foreign policy changed. Prior to our obsession with gasoline guzzling cars, we had very little concern about the barren desert nations of the Middle East. But once oil was discovered in Saudi Arabia by Standard Oil in 1936, the stage was set for the issues and conflicts in the Middle East that plague the US and the world even today.

            I would recommend this video documentary to anyone who enjoys historical issues that affect our American economy, society and foreign policy today.  You will never look at a gasoline station quite the same. In fact you may have a sudden urge to buy a Prius or go solar.

Turning Oil into Electricity: Is it worth it? - P#2

            Oil provides for 40 percent of our energy needs through such products as gasoline, kerosene, jet fuel, propane and heating oil.  However, when it comes to producing electricity, oil accounts for only 8 percent of the electricity consumed by Americans. These electric generating plants use three technologies to produce electricity, conventional steam, combustion turbines and combined-cycle turbines. Conventional steam uses oil to heat up boilers creating steam to turn turbines creating electricity. Combustion turbines look like giant jet engines in which the oil fuels these turbines creating electricity and is the most common method using oil. A newer technology, combined-cycle combines both conventional steam and combustion; the combustion turbine produces super-hot exhaust that boils steam to turn another steam turbine producing twice as much electricity. While the technology used in these power plants proves efficient, there are many side effects and impacts to the environment that are detrimental, and perhaps oil power plants should be replaced with cleaner, renewable forms of energy.

            The Environmental Protection Agency (EPA) regulates laws on a Federal and State level to protect the environment and the health of the American population. This federal agency monitors all sources of energy, renewable and non-renewable to make sure it is doing as little harm to our environment as possible.  However, oil burning power plants release into the air on average,  “1672 lbs/MWh (Megawatt hour)  of carbon dioxide, 12 lbs/MWh of sulfur dioxide and 4 lbs/MWh of nitrogen oxides.” (“Oil”)  This in turn causes acid rain which kills plants and trees destroying our environment. Acid rain is the main cause to erosion which leads to landslides and the destruction of native species of plants and animals.
           
            Oil power plants need to use water for many reasons: for the production of steam, for the cooling machinery, and for the cleaning out systems. All of these sources produce pollutants that affect our environment. When oil power plants use steam, large amounts of water are used from lakes or rivers, which in turn can kill aquatic life. Wastewater used to cool super-hot equipment “is generally hotter than the water in nearby lakes and streams, often harming fish and plants.” (“Oil”)  In addition many chemicals like mercury are released which in turn collects in fish populations. Mercury poisoning can occur from the consumption of contaminated fish, which in turn can cause blindness, loss of hearing, brain damage and death.

            Oil refineries which take crude oil and remove impurities are a source of great environmental concern. The recovery of oil from the ground often causes methane to be released, which is a greenhouse gas, and may be contributing to global climate change. Another side effect of oil drilling can cause oil to be released into groundwater supplies which contaminates underground rivers and streams and eventually makes it to surface water. “Drilling also produces a long list of air pollutants, toxic and hazardous materials, and emissions of hydrogen sulfide, a highly flammable and toxic gas.”  (“Electricity”)  Wastewater sludge and other solid waste produced by the refining of oil contains high levels of toxic compounds that require special waste management and disposal.

            While oil is an abundant fuel source, it is nonrenewable, meaning it cannot be replenished during our normal lifetime. It takes over a million years of the earth’s heat and pressure and the decomposition of organic material to produce oil.  With only 8 percent of the electricity being produced from oil power plants, it seems to make sense that the United States should focus on replacing these oil power plants with renewable sources of electricity. Renewable sources like solar, wind, hydro and biomass can also be used to produce electricity, and these sources produce very little pollutants and carbon footprint. 

 

 

Bibliography

 

"Electricity from Oil." Electricity from Oil. N.p., n.d. Web. 01 Dec. 2013. <http://www.powerscorecard.org/tech_detail.cfm?resource_id=8>.

 

"Oil." EPA. Environmental Protection Agency, n.d. Web. 01 Dec. 2013. <http://www.epa.gov/cleanenergy/energy-and-you/affect/oil.html>.

 

"How Do Oil Spills Damage the Environment?" About.com Environmental Issues. N.p., n.d. Web. 01 Dec. 2013. <http://environment.about.com/od/petroleum/a/oil_spills_and_environment.htm>.

 

"Types of Renewable Energy." Why Is Renewable Energy Important? N.p., n.d. Web. 01 Dec. 2013. <http://www.renewableenergyworld.com/rea/tech/home>.

The Great Craving: The Effect of Oil - P#1

          While the use of oil in itself is not bad, the dependence on foreign oil has caused the United States to focus its foreign policy on the Middle East oil rich countries economically, politically and militarily. This foreign policy has caused the US to make some less than desirable concessions to scrupulous leaders, uses of military might, and been cornered into economic crisis. Finding a region besides the Middle East that is more stable economically, didn’t have trouble with political leaders, didn’t have constant conflicts with neighboring countries, and could supply the US with our desired oil is a solution, or maybe we should try turning to more alternative energy sources.

          Ever since the discovery of oil in Titusville, Pennsylvania and the invention of the internal combustion engine, US society and more so its foreign policy have changed. This became more evident in the twentieth century with the occurrence of two World Wars as the US would take a more active role in the affairs of foreign countries. As the consumption of oil and gasoline would rise beyond the amount of domestic oil production, the US would look to foreign sources to meet the demand. In particular after WWII our foreign policy would change economically, politically, and militarily based on this demand for oil; however, the new oil foreign policy has not always worked to our advantage.

          The discovery of oil in Saudi Arabia by Rockefeller in 1936, US foreign policy would change to have a focus on the oil rich nations of the Middle East. Prior to 1936, as early as 1919 in fact the United States had the opportunity to be involved with the Middle Eastern countries. The door was open by the League of Nations as those regions of the Ottoman Empire were divided into independent states to become more involved in Middle Eastern affairs. However, there was no considerable economic advantage in buying Persian goods, such as rugs, figs, and minerals. The US did not feel moved to intervene in their political disputes over such novelties. Until of course the natural resource became oil. The US had become an oil dependent society, as the automobile became a part of everyday life, and oil drove industries and economic policy. In 1973, OPEC forced an oil embargo on the US and other free world economies. This created gasoline shortages in the US and the price of gas quadrupled. Since then ensuring that supply of oil has been one of the most important foreign policy issues for the US economically.

          Politically, oil has forced our concern for the politics of the Middle East. In the 1950s the US government in attempt to keep communism out of Iran, helped oust the newly elected prime minister. The US backed a coup that would put into power the Shah of Iran in 1953, a pro-American leader. The Shah, Mohammed Reza, made sure to sell plenty of Iranian oil to the US in exchange for money and military might. Iran the largest country in the Middle East and certainly one of the largest oil producing countries in the world enjoyed this status with the US as much of the US relished in the oil supply. However, the Shah was ruthless to his own people, suppressing political opposition, employing a secret police and forcing western ways on them. The US turned a blind eye to these human right violations as not to upset the delicate relationship that included a very large supply of oil. In 1979 Islamist revolutionaries overthrew the Shah, took over the government. Since then the US has had a turbulent relationship with Iran, and has been shut off from the Iran oil supply since.

          Militarily, oil has been the reason for putting soldiers in harm’s way, all for the sake of protecting our oil supply. Prior to WWII, if conflicts arose in the Middle East, it would barely affect the United States and in fact the US would not get involved. When the German Army took over parts of the Ottoman Empire, the US protested but did not enter WWII over it. Today even the threat of war in the Middle East has US diplomats attempting to work out the issues with those upset neighboring countries to avoid conflict. In 1990, when Saddam Hussein and his Iraqi Army invaded neighboring Kuwait, the US responded by sending a large force made up of our Navy, Air Force, Marines, and Army to free Kuwait at the urging of the other Arab countries. Kuwait’s oil fields supplied the US on a small scale, but other larger oil supplies in Saudi Arabia were Saddam’s potential next target. American foreign policy driven by oil again pushed the US into conflict. While the US military force easily beat back the Iraqi military, our presence in Iraq would last for decades as another conflict would bring us back to Iraq again in 2002.

Iraqi Military during Operation Desert Storm when Saddam Hussein tried invading the Saudi Oil Fields.

American F-15 used in Operation Desert Storm




Bibliography

"Oil Embargo, 1973–1974 - 1969–1976 - Milestones - Office of the Historian." Oil Embargo, 1973 –1974 - 1969–1976 - Milestones - Office of the Historian. United States Department of State, 31 Oct. 2013. Web. 09 Jan. 2014.

 

"Oil's Impact" Audio Poem

http://www.youtube.com/watch?v=cigJqKz6I-0