Oil Production Phases, Location Factors, and Trade Concepts

Oil Production Phases

• Exploration: The search activity for oil through geological and laboratory techniques.
• Exploitation or Production of Crude: A set of activities including locating fields, drilling wells, preparing pipes, building storage facilities, etc.
• Refinery: The process involving a set of physical and chemical processes from which crude oil yields various products.
• Marketing: The placement of oil and its derivatives in consumer markets.

Location Factors

• Market Access: Proximity to consumer markets reduces transportation costs and facilitates access to foreign markets via ports and airports.
• Communication Possibilities: The existence of communication infrastructure allows easy access to markets.
• Quantity and Quality of Labor: Requires a large number of staff with specialized training.
• Physical-Geographical Factors: Industrial centers tend to be located near sources of raw materials.
• Historical Factors: Associated with the initial settlement of the territory and the origin and development of major population centers.

Trade Concepts

Trade: The result of population agglomeration in towns and the emergence of an economic surplus. Trade types include:

• Domestic: Exchange of goods within national boundaries.
• Wholesale: Purchase and sale of goods in large quantities.
• Retail: Small-scale commercial transactions.
• Informal: Conducted by hawkers and street vendors.
• External: Trade of goods with other countries.
• Export: Placement of products in international markets.
• Import: Purchase of goods and commodities not produced domestically.
• Trade Balance: The relationship between the value of imports and exports, often tracked by institutions like the Central Bank of Venezuela.

Related Terms

• Sedimentary Basin: A large-scale depression in the Earth's crust where sediments accumulate over geological time, often containing oil and gas deposits.
• Hydrocarbon: Any compound (solid, liquid, or gas) containing carbon and hydrogen.
• National Income: The total value of all goods and services produced within a country during a specific period, representing its economic output.