Energy Business Exam 1 (Assignment 1-3)

Which of these is an advantage of horizontal (directional) drilling? Horizontal drilling is less expensive than vertical drilling. None of these. Horizontal wells are technologically easier to drill than vertical wells. A greater portion of the reservoir is exposed to drilling horizontally versus vertically. A single vertical well can access more of the reservoir than a horizontal well.

A greater portion of the reservoir is exposed to drilling horizontally versus vertically.

'Picture of CH4' The above hydrocarbon is known as: A) butane B) propane C) methane D) crude oil E) ethane

C) methane

Ethanol Mandates: A Bad Idea? and answer the following question (the choices are listed in the order of the blanks below (3 answers needed in the order of these blanks): Ethanol produces ____ less energy per volume than conventional gasoline, reducing cars' fuel economy. As for its effect on the environment, a 2010 Congressional Budget Office study found that corn-based ethanol subsidies are terribly inefficient, with the government spending an estimated ____ per metric ton of avoided emissions—an astronomically high price tag compared with other policies. The mandate soon diverted ____ of America's corn crop away from the food supply. A) 25% and $475; and 10% B) 30% and $150; and 40% C) 30% and $575; and 35% D) 38% and $388; and 25% E) 34% and $754; and 40%

E) 34% and $754; and 40%

Who was the first person to drill oil in the USA in 1859? A) Boone Pickens B) Charles Goodyear C) Thaddeus Fairbanks D) Sir William Robert Grove E) Edwin L. Drake

E) Edwin L. Drake

Which one of the companies operate large excavators in sprawling, opencast mines in Alberta oil sands and use the world's largest off-road trucks to take the sand to extraction plants, after which the liquid goes to upgrading facilities that convert it to light, low-sulfer crude oil. This question is from Chapter 4: Running Out: Peak Oil and Its Meaning, from Energy Myths & Realities. A) Devon Energy B) ConocoPhilips C) Chesapeake Energy D) ExxonMobil E) Suncor

E) Suncor

Who is the world's largest natural gas producer? (Hint: Look at the API reading.) A) Kuwait B) Saudi Arabia C) China D) Iraq E) United States

E) United States

What is one of the most used indicator of industrial activity in the upstream (which also impacts the oilfield and equipment sector) part of the oil and gas industry? A) storage B) production trees C) seismic surveys D) refining capacity E) rig count

E) rig count

Who patented an explosive devise in 1865 to stimulate oil well? Prof. Simkins None of these. Edward Roberts Nick Steinsberger Aubrey McClendon

Edward Roberts

The first commercial hydraulic fracturing jobs, in 1949, were performed by which company? Mitchell Energy ConocoPhillips Halliburton The Tulsa Drillers None of these.

Halliburton

Which of the following made lighting cheaper? a) GEnx-IB b) Edison's Pearl Street plant c) Roller-Cone drill bit d) The Haber-Bosch process e) Diesel engines

b) Edison's Pearl Street plant

Gasoline engines with spark-ignition systems are more efficient than diesel engines. a) True b) False

b) False

We are traveling faster cheaper and safer than before, but air quality has declined. a) True b) False

b) False

After the expansion of the Panama Canal, how many additional containers can a cargo vessel carry through the canal? a) 5,000 b) 13,000 c) 7,000 d) 6,000 e) 8,000

e) 8,000

What is the author's opinion on primitive harmony discussed in Part I? a) It is unclear what the results of primitive harmony would be. b) Primitive harmony is important for the sustainable growth of economy. c) The popularization of primitive harmony is important. d) We need more neo-Malthusians. e) It is time to discard the idea of primitive harmony.

e) It is time to discard the idea of primitive harmony.

Which of the following is not an example of a quest for Smaller Faster Lighter Denser Cheaper discussed in the book? a) Printing press b) Diesel and jet turbine c) Telescope and microscope d) Haber-Bosch process e) Vacuum cleaner

e) Vacuum cleaner

From 2008 to 2015, what was the percentage change in U.S. production of crude oil and liquids? 25 percent 46 percent 88 percent None of these. -12 percent

88 percent

The first oil price shock was in ____, with the Arab oil embargo which caused an ______ in oil prices and shattered the consuming countries' complacency about supply security and prices. A) 1973, rise B) 1979, rise C) 1973, drop D) 1984, rise

A) 1973, rise

In the first two weeks of lectures, we discussed how energy consumption is measured quadrillion btus. We mentioned how we consume about 35 quadrillion btus in oil currently. Which if the following is the correct way to write this number? A) 35,000,000,000,000,000 B) 35,000,000 C) 35,000,000,000 D) 35,000,000,000,000 E) No choice is correct

A) 35,000,000,000,000,000

In the lectures about the Energy Value Chain, according to Dr. Simkins, there is an energy arbitrage opportunity along the border of which two countries? A) Canada and the U.S B) Greece and Poland C) Columbia and Venezuela D) Saudia Arabia and Kuwait

A) Canada and the U.S

What are the 3 forms of fossil fuels? A) Coal, natural gas, and petroleum. B) Coal, natural gas, and bitumens. C) coal, natural gas, and gasoline D) Tyrannosaurus Rex, Ankylosaurus, and Velociraptor. E) Coal, peat, and petroleum.

A) Coal, natural gas, and petroleum.

Which of the following is not a paraffin? A) Ethylene B) Butane C) Propane D) Methane

A) Ethylene

What is the process of breaking up rock formation by pummeling rocks with various liquids, creating pathways for natural gas to flow to the surface, known as ? A) Fracking B) Tearing C) Breaking D) Cracking

A) Fracking

Fertilizer is made primarily from which feedstock into the chemical industry? A) Methane (natural gas) B) Naptha C) Ethane D) Propane E) Benzene

A) Methane (natural gas)

_________ is a term often used to describe the processing, storage and transportation sectors within the oil and gas industry. It defines the industry processes that occur between the upstream and downstream sectors. A) Midstream B) Downstream C) Petrochemicals D) Upstream

A) Midstream

What is considered the world's first true synthetic fiber? A) Nylon B) The glue on 3M Post-it Notes. C) polyethylene D) PVC

A) Nylon

What does Boone Pickens NOT liked to be called? A) Tar Man B) BP C) Rich D) Oil Man

A) Tar Man

What did Dr. Simkins say about Hurricane Harvey? A) The crack spread increased rapidly B) Weather did not affect oil prices C) The refineries were able to keep up with oil demand D) OPEC raised oil prices

A) The crack spread increased rapidly

In the syllabus lecture and about me, Dr. Simkins explained why she is referred to as an "Ex Con". What is the reason? A) This is a name given to people who worked for Conoco in the past. She worked for them too. B) She served time but claims she is still innocent of why she was locked up for six years. C) She worked in upstream before becoming a professor. This name is a short name for crude oil and people who have worked in upstream. D) She has 3 children, all ex-cons. E) She worked for Converse shoes in the past and people who worked for them are referred to as "Ex Cons".

A) This is a name given to people who worked for Conoco in the past. She worked for them too.

Which US sector is responsible for the largest petroleum consumption? Hint: From the Ch. 3 Energy Economics lecture. A) Transportation B) Residential C) Commercial D) Industrial E) Electric

A) Transportation

Sweet crude has less than 1% sulfur content and sour crudes have greater than 1% sulfur. This statement is: A) True B) False

A) True

The October 1973 Embargo and the production effects of Iranian Revolution followed by the last 1970s Iran-Iraq war had a similar effect on oil prices. What was this effect? A) prices more than doubling B) none of the choices is correct C) small stable increases in price D) negligible effect on prices E) steep decline in prices

A) prices more than doubling

In 1978, who wrote in Scientific American that "the supply of oil will fail to meet increasing demand before the year 2000"? This question is from Chapter 4: Running Out: Peak Oil and Its Meaning, from Energy Myths & Realities. A) M. King Hubbert B) Richard Duncan C) Colin Campbell D) L.F. Ivanhoe E) Andrew Flower

E) Andrew Flower

Three specific petrochemicals from Stage 1 form the foundation of the industry. This is from the lecture on petrochemicals. These three petrochemicals are: A) natural gas, oil, and coal B) ethylene, naptha, and NGLs C) LLDPE, HDPE, and PET D) Olefins and aromatics E) Ethylene, propylene, and benzene

E) Ethylene, propylene, and benzene

According to what person, did they say that the end of the oil era in the near future will bring "the inevitable doomsday" to be followed by "economic implosion," which will make "many of the world's developed societies look more like today's Russia than the U.S."? This question is from Chapter 4: Running Out: Peak Oil and Its Meaning, from Energy Myths & Realities. A) Richard Duncan B) Jean Laherrere C) Kenneth Deffeyes D) Colin Campbell E) L.F. Ivanhoe

E) L.F. Ivanhoe

Which petrochemical feedstock (hint: think of a natural gas liquid) is the most important, #1, to the petrochemical industry. Which is #2? A) Propane and butane B) Methane and propane C) Butane and iso-butane D) Ethane and butane E) None of the answers are correct

E) None of the answers are correct

According to the article entitled, "Myths and Facts on Wastewater Injection, Hydraulic Fracturing, Enhanced Oil Recovery, and Induced Seismicity," by Rubinstein and Mahani (Seismological Research Letters, 2015), hydraulic fracturing is the primary cause of the large change in seismicity that has been observed in the U.S. True False

False

In OECD countries, consumption has recovered to a level equal to that prior to the recession in 2008. (From Ch. 3 Energy Economics and updated class lecture) True False

False

This is polyethylene terephtalate. It is also known as PETE or PET.

Plastic #1

HDPE is short for high density polyethylene, and is the most often recycled plastic.

Plastic #2

LDPE plastics are made of low-density polyethylene.

Plastic #4

Polyvinyl chloride is commonly known as PVC.

Plastic #4

Polypropylene (PP)

Plastic #5

Polystyrene, or Styrofoam on the street (PS) __4__ LDPE plastics are made of low-density polyethylene. __5__ Polypropylene (PP) Incorrect Response __3__ (4) Polyvinyl chloride is commonly known as PVC. __2__ HDPE is short for high density polyethylene, and is the most often recycled plastic. 1. Plastic #1 2. Plastic #2 3. Plastic #3 4. Plastic #4 5. Plastic #5 6. Plastic #6

Plastic #6

Which of the following technologies did not contribute to the shale boom during the 2008-2015 period? Directional drilling Hydraulic fracturing All of these are correct. Multi-well pads Radiography

Radiography

The US can now export crude oil as of January 2016, the first time in the last 40 years. This statement is: True False

True

What are the 3 sectors of the Oil and Natural Gas industry? In other words, what are the sectors of the energy value chain. Exploration, production, and marketing Refining, pipeline, and compression Upstream, downstream, up a stream without a paddle Upstream, midstream, and downstream

Upstream, midstream, and downstream

Which of the following is not a result of the invention of the Roller-Cone drill bit? a) Directly led to accidents like the Deepwater Horizon accident in 2010. b) Made gasoline and other refined oil products more abundant. c) Fostered suburban sprawl, and air pollution. d) Made gasoline and other refined oil products cheaper. e) Intensified commute times.

a) Directly led to accidents like the Deepwater Horizon accident in 2010.

Which of the following are considered pivotal instruments of the scientific revolution? a) Telescope and microscope b) Digital-communications c) Printing press d) Diesel and jet turbine e) Power plant

a) Telescope and microscope

What energy has changed human society the most since the nineteenth century? a) Gas b) Wind energy c) Electricity d) Solar energy e) Diesel

c) Electricity

Which of the following is not proof that technologies are raising living standards? a) Increased access to online education have expanded educational access. b) Technology has increased the discovery and utilization of new and valuable natural resources. c) The rapid decline in the stock of natural resources. d) Technology has led to the production of more productive and specialized tools. e) The increase in average wealth caused by the push towards smaller faster lighter denser and cheaper technology.

c) The rapid decline in the stock of natural resources.

Which of the following does not represent an improvement in living standards discussed in this section? a) Women's rights, freedom, and education levels has increased. b) The invention of satellite television has led to increased access and globalization for millions of people. c) There is now a real need to reduce our consumption levels. d) Expanded high-speed low-cost internet connectivity. e) The combination of hybrid seeds, better pest control methods and more accurate applications of fertilizers allow farmers to produce more food.

c) There is now a real need to reduce our consumption levels.

According to author Robert Bryce in Smaller, Faster, Lighter, Denser, Cheaper, which of the following is not part of Greenpeace's viewpoint? a) Greenpeace wants to stop economic growth to save the planet. b) Greenpeace wants to protect existing ecosystems. c) Greenpeace opposes the use of hydrocarbons. d) Greenpeace believes governments need to tax ecologically harmful industries. e) Greenpeace is antinuclear.

d) Greenpeace believes governments need to tax ecologically harmful industries.

What is the author's opinion of Bill McKibben's Energy-Starvation Plan? a) Only India has the current capabilities to pursue the Energy-Starvation Plan b) Solar and wind energy will provide a majority of global energy in the future c) The mathematics supporting the plan support the plausibility of the plan d) The plan is a prescription for short-term economic drawbacks but long-term economic prosperity e) The plan is a prescription for economic suicide

e) The plan is a prescription for economic suicide

The change in the U.S. production of crude oil and liquids, during the 2008-2015 period, represented what percentage of the entire world's increase in production? None of these. Almost 70 percent Less than 10 percent Between 40 and 45 percent Nearly 25 percent

Almost 70 percent

How much oil flows through the Strait of Malacca each day? This is from the Midstream lecture. A) 20 million barrels B) 15 million barrels C) 17 million barrels D) 8 million barrels E) 12 million barrels

B) 15 million barrels

From the API reading. What are the five types of renewable energy? A) Biothermal, hydropower, geothermal, wind, and solar B) Biomass, hydropower, geothermal, wind, and solar C) Biomass, ethanol, geothermal, wind, and solar D) Biomass, hydropower, geothermal, wind, and nuclear

B) Biomass, hydropower, geothermal, wind, and solar

What type of fuel has the highest BTU per volume? Hint: From the Ch. 3 Energy Economics lecture. A) Gasoline B) Diesel C) Wood D) Kerosene E) Natural gas

B) Diesel

Peter Parker works for a company that refines and sells oil. What kind of company is this? A) Midstream B) Downstream C) Mr. Stark I don't feel so good about this upcoming test D) Upstream

B) Downstream

From the API reading, Energizing American: Facts for Addressing Energy Policy. Growth in world oil consumption is expected to be concentrated in OECD countries. This statement is: A) True B) False

B) False

Ivanhoe is the patron saint of peak-oilers, considered an infallible and prescient seer because, as we are repeatedly reminded, he correctly predicted the peak of U.S. oil production in 1970 This question is from Chapter 4: Running Out: Peak Oil and Its Meaning, from Energy Myths & Realities. A) True B) False

B) False

Specialty chemical prices are more cyclical than commodity chemical prices. A) True B) False

B) False

The refining industry and petrochemical industry are not cyclical industries. A) True B) False

B) False

What are the three principal feedstocks for the chemical industry. (I do not mean the base petrochemicals. I am asking about the feedstocks into the chemical industry.) A) Heating oil, ethylene, and naptha B) Naptha, natural gas, and natural gas liquids C) Propylene, natural gas liquids, and coal D) olefins and aromatics.

B) Naptha, natural gas, and natural gas liquids

What is used to measure the complexity of a refinery? A) Estimated complication spreadsheet B) Nelson complexity index C) Standard refinery matrix D) Parker industries complexity matrix

B) Nelson complexity index

Refining and marketing is known collectively as ___________. A) Petrochemicals B) No choice is correct C) Midstream D) Upstream

B) No choice is correct

Which natural gas liquid is used to make the base chemical, propylene? A) Methane B) Propane C) Ethane D) Pentane E) Butane

B) Propane

Which of the following is a light sweet crude oil? A) API of 30 and 1.5% sulfur B) API of 40 and 1.1% sulfur C) API of 30 and 0.5% sulfur D) API of 20 and 1.5% sulfur E) API of 110 and 4% sulfur

C) API of 30 and 0.5% sulfur

What are hydrocarbons? A) An organic compound consisting of carbon and nitrogen. B) An organic compound consisiting of carbon, hydrogen, and oxygen. C) Any organic compound consisting only of carbon and hydrogen. D) Any organic compound.

C) Any organic compound consisting only of carbon and hydrogen.

From the API reading: Which renewable fuel is expected to provide the greatest percentage of our energy needs in 2040 in the US? A) Geothermal B) Solar energy C) Biomass D) Wind E) Hydroelectric

C) Biomass

______________ is the cleanest, quickest and most cost-efficient way to extend today's energy supply in the future. Select the best answer. This is from the API reading. A) Wind B) Solar C) Energy efficiency D) Natural gas

C) Energy efficiency

Who in his acceptance speech for the Binneial OPEC Awards in 2006 concluded that today's peak-oilers, much like their predecessors, will soon proved wrong; that the present contribution of oil and natural gas to the global total primary energy supply will decline only modestly by 2050; and while natural gas will become the leading fossil fuel, the oil industry at the end of the twenty-first century will still be larger than it was in 2003. This question is from Chapter 4: Running Out: Peak Oil and Its Meaning, from Energy Myths & Realities. A) Addalla Salem El-Badri B) Rex Tillerson C) Peter Odell D) Richard Nehring E) Khalid Al-Falih

C) Peter Odell

Why were the 1980's an awful time in the oil business? The answer to this question is found in the lectures about the Energy Value Chain and Energy Economics lectures. A) Growing supply from the South Sea B) Political unrest in Peru C) Some members of OPEC ramped up production D) All of the above E) None of the above.

C) Some members of OPEC ramped up production

What are the two leading global benchmark crude oils, including the location of the crude oil. A) WTI at Cushing, OK and Brent (Saudi Arabia) B) West Texas Intermediate at Henry Hub, LA and Brent in the North Sea (UK) C) West Texas Intermediate at Cushing, OK and Brent in the North Sea (UK) D) West Texas Intermediate at Cushing, OK and Saudi Light (Saudi Arabia)

C) West Texas Intermediate at Cushing, OK and Brent in the North Sea (UK)

In 1985/86, Saudi Arabia's jettisoning of the swing producer role and adoption of netback pricing triggered _____ in oil prices. A) a sharp increase B) no change C) a sharp decrease D) a small increase

C) a sharp decrease

Over time, electricity has been responsible for most of the energy consumption growth in the commercial sector due to the use of what? Hint: From Chapter 3 Energy Economics lecture. A) cooking B) natural gas cars C) air conditioning D) heating systems E) electric vehicles

C) air conditioning

According to the API reading, the US is expected to need about ___ % more energy and the world is expected to need ___ % more energy by 2040. Choose the best answer. A) none of the choices are correct B) less than 7%; more than 40% C) less than 10%; more than 50% D) less than 10%; more than 60% E) more than 50%; less than 10%

C) less than 10%; more than 50%

How many discussion posts do you need to make this semester and how many points in total are they worth? Note: See the syllabus for details on what types of discussion posts count, how much they are worth, and other requirements. A) 1000, a million points B) 10, 35 points C) 8, 40 points D) 7, 35 points E) 5, 25 points

D) 7, 35 points

What were the forecasts of peak-oil theorists, especially the doomsday scenarios, in the coming decades? This question is from Chapter 4: Running Out: Peak Oil and Its Meaning, from Energy Myths & Realities. A) None of the choices are B) Mass unemployment C) Starvation D) All of the choices are correct E) Near-stone age conditions

D) All of the choices are correct

You just purchased food at WalMart and they gave you a plastic bag with your goods. This plastic bag is most likely made from which of the following plastics? (Hint: This question is from the Petrochemicals lecture. A) Low-density polyethylene (LDPE) B) Polyethylene terephthalate (PETE) C) Polyvinyl chloride (PVC) D) High-density polyethylene (HDPE) E) SAP

D) High-density polyethylene (HDPE)

As shown in Figure 4-1b, which of the options below best describes how the average global per-capital consumption of primary energy has evolved over 1950 to 2010. This question is from Chapter 4: Running Out: Peak Oil and Its Meaning, from Energy Myths & Realities. A) It has remained flat over the time period. B) It is impossible to tell. C) All of the answers are correct. D) It has increased over the time period. E) It has decreased over the time period due to efficiencies.

D) It has increased over the time period.

What is the major component of natural gas? A) Ethane B) Propane C) Emissions by people D) Methane

D) Methane

Who owns the majority of hydrocarbon assets in the world? This is from the API reading. A) U.S. government B) Major Oil Companies, i.e. Shell, Exxon-Mobil, etc. C) Bill Gates D) National Governments E) Publicly traded companies

D) National Governments

What is the overall and primary goal of the Energy Value Chain? A) To fuel the transportation industry B) To produce ethanol products for the American population C) To create the best gas products in the world D) To make money

D) To make money

Consumption in non-OECD countries has changed in what way over the past 15 years? (From Ch. 3 Energy Economics) A) growth that was halted by the 2008 recession and then proceeding to decline steadily B) an exponetially growing amout of consumption (i.e., more than doubling every year). C) declining because of efficiencies D) an almost linear trend upward E) fairly flat with little growth

D) an almost linear trend upward

The natural gas producing Barnett Shale is located in which state? North Dakota Pennsylvania None of these. Texas Oklahoma

Texas