Energy culture is based on the behaviors of consumers. Energy culture is relevant energy practices and material culture. What kind of products or fuels are used? How much are they used? Where are they used? Why are they used? All questions is for determining energy culture.
Energy culture has importance for international oil industry. Energy culture helps us to understand and comment industry of oil. It also effects producers and consumers countries policy.
Energy culture has changed in time. When new energy sources discovered, if it has more advantages than others, it will start to use. This situation that name as energy transition is really important for energy sector. First energy product was wood. People collect woods from forests or jungles and burn it to warm up their home or produce something.
First energy transition is from wood to coal. Coal was started to use and become popular while industrial revolution. Stream power engines upgraded and started to use in industrial production. Coal has much energy content from wood. Coal effected lifestyle of people like production. Higher production rate, decrease production cost effects people.
Second transition is from coal to oil. Oil was started to use and become popular in 20th century. Internal combustion engines invented and started to use which use oil to run. Also different areas of usage appeared. Nowadays, oil is most used energy source. It is using many areas. The reason of becoming oil popular is oil has some advantages.
Oil is liquid product. It is easy to fill somewhere for transporting. Tankers, trucks and also trains can transport oil product from production area to consumption area. Pipeline can also transport oil easily. It is also easy to store because it’s liquid. The other advantage of oil is energy content. Oil contents much energy compare to other any other energy products. It is profitable sector to make money. It brings to investors high profit. Oil product is easy to find because of its wide usage. In cities there are lots of pump station.
Oil has wide usage but the most important usage area is transportation. In transportation sector oil has a dominant place when compared to any other energy product. Internal combustion engines which is burn oil to run, are using transportation vehicles. An important fact is about cars. Nowadays cars with internal combustion engine is basic need for people, it’s not a luxury need.
Wide usage of oil and its dominant place in energy sector increase important of oil producer areas in global politics. Petrol producer zones, Cenral Asia, the North Sea, Latin America, West Africa, Russia, Middle East, attract attentions. Producer countries try to get more importance. Producer countries strategies, policies, quantity and quality of their sources, locations etc. determine the countries importance.
In these look Middle East has unique importance in international oil industry. It has big resources. Middle East occupies two thirds of the global oil resources. Additionally low level of exploration, drilling and production cost is really low when compare to other producers and areas.
Middle East’s location is close consumption areas. This situation gives two opportunities, transportation cost and transportation time get low. It is close main consumption areas like Europe so transportation costs are low compare with other areas. Short distances cause lead time between load and unload shorter. Time is crucially important as cost.
Other opportunity is spare production capacity. Spare production capacity increase production without any damage main resources. Middle East has spare production opportunity. Because of all reasons, Middle East is crucially important for international oil industry. Middle East continue their importance as well as oil continue its importance.