Oil 101
Everything you need to know about the world's most important commodity. A beginner's guide.
What Is Oil?
The basics of petroleum
Oil, or petroleum, is a fossil fuel formed from ancient organic matter over millions of years. It's a complex mixture of hydrocarbons that we extract from underground reservoirs and refine into products we use every day.
How Oil Forms
Why Oil Matters
The world's most traded commodity
Oil powers cars, trucks, ships, and planes. It's the raw material for plastics, fertilizers, and pharmaceuticals. Modern civilization runs on oil—for now.
The Oil Industry
From ground to gas tank
Upstream
Finding & Extracting
- Exploration (seismic surveys)
- Drilling (onshore & offshore)
- Production (well management)
Midstream
Moving & Storing
- Pipelines (land & sea)
- Tanker ships
- Rail, trucks, storage
Downstream
Refining & Selling
- Refining (crude to products)
- Petrochemicals
- Gas stations
What Oil Becomes
Products you use every day
Key Concepts
Terms you'll encounter
Benchmark Prices
Oil prices are quoted against benchmarks. Brent (from the North Sea) is the international standard. WTI (West Texas Intermediate) is the US standard. Prices are quoted per barrel (42 gallons).
OPEC
The Organization of the Petroleum Exporting Countries is a cartel of oil-producing nations that coordinates production levels to influence global prices. Members include Saudi Arabia, UAE, Iraq, and others.
Energy Transition
The ongoing global shift from fossil fuels toward renewable energy sources. While oil's role is changing, it remains significant—most projections show substantial oil use continuing through 2050.