Where Does Crude Oil Come From?

February, 2018 by

Crude oil is a natural resource that takes thousands of years to create. Commonly known as petroleum, the thick liquid is a result of time, pressure and heating of organic materials with hydrocarbons. Over time, these elements combine to create liquid black gold deep under the ground. Due to the various uses of petroleum and its by-products, once it has been extracted from the ground, it is one of the world’s most highly sought out investment portfolios.

Crude Oil Formulation

To understand why investing in crude oil is so popular in all respects, one of the key factors that needs to be analyzed is how crude oil is formed. The majority of the crude oil discovered and extracted today has been a result of the decomposition of many organic products for millions of years. What is considered crude oil today, was once plants, swamps and dinosaurs. Over time, these organic materials break down and under the right circumstances, turn into crude oil. Because of this long process, crude oil’s valuation sky rockets due to the scarcity of this resource.

Crude Oil Locations

Because circumstances must be just right in order for crude oil to form, it’s to be understood this resource is not found everywhere on Earth. Although every country heavily relies on crude oil for daily functionality within a nation, only few countries have discovered and extracted crude oil. This makes investing in crude oil quite lucrative. In fact, a majority of the world’s crude oil is derived from one of the Organization of the Petroleum Exporting Countries (OPEC) nations. OPEC’s members produce around 80 percent of the world’s petroleum and holds representation from Algeria, Angola, Ecuador, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, UAE and Venezuela.

Overall, as one of the world’s most utilized commodities, investing in crude oil is high because of its demand and supply imbalance.

Interested in finding out more about this resource and investing in crude oil? View Crude Funder’s website to find out more.

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