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Oil (Background (fossil fuels are derived from remains of living creatures…
Oil
Background
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The rate of formation for coal, oil and gas is dependent on temperature and pressure
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Formation
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They accumulated in low oxygen conditions and were buried, heated and the complex molecules were broken down into simple molecules
For oil to be economically useful it has to accumulate in large enough amounts, usually oil traps which prevent the oil escaping. These can be drilled and pumped to extract the oil
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Problems with reserves
Improved drilling techniques, seismic interpretation and efficient extraction help recover more oil. But the improvement are only slight
Reserves reporting is strictly controlled by the stock exchanges so companies don't exaggerate the size of their reserves and make them appear a better investment
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