Oil Gas and Energy Management

Running head: OIL GAS AND ENERGY MANAGEMENT
Oil Gas and Energy Management
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OIL GAS AND ENERGY MANAGEMENT
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Contents
Answer 1:.........................................................................................................................................2
Answer 2a:.......................................................................................................................................2
Answer 2b:.......................................................................................................................................3
References:......................................................................................................................................6

OIL GAS AND ENERGY MANAGEMENT
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Answer 1:
The decision as to which petroleum products a refinery will produce will depend on number of
factors including impact of such product on the environment, cost of production, demand in the
market, supply in the market, expected price of the product and expected profit to the refinery.
Thus, both qualitative and quantitative factors are to be considered by a refinery manager while
taking a decision on the petroleum products to be produced in a refinery.
Major Petroleum products, users and main applications of petroleum products:
Major petroleum products include fuel for generation of electricity, transportation fuel, gasoline,
lubricating oil, asphalt, waxes, various types of chemicals, synthetic materials, etc. Major users
of petroleum products include transport industry, airline industry and electricity industry. It is
clear from the major petroleum products and major users of these products that primary
application of these products are in transportation. Apart from that generation of electricity and
use in airline are also key applications of petroleum products (Kondratov, Varepo and Ermakova,
2016).
The decision of a refinery manager shall be influenced due to the Coronavirus outbreak as most
of the countries across the globe has either gone into complete lock down or has closed their air
root for foreign airlines. Thus, the major application of petroleum products which is in
transportation and airline industry is down hugely. As a result it would be appropriate for the
manager to concentrate on producing other petroleum products till the crisis continues. Hence,
gasoline, cooking gas, petrochemical, lubricating oil and asphalt are few products which the
refinery manager should produce till the coronavirus outbreak continues (Jean and Lee, 2017).