Pros And Cons Oil Business

We make use of crude oil in so many walks of life. It has become a primary substance of use because it is used to generate power, providing heat and also provides fuel for billions of cars all around the planet. I feel that life would have been very primitive and completely different if it weren’t for the discovery of oil energy. Oil energy is one of the most used and necessary forces on planet earth. No other energy comes close to how efficient and popular. Water energy, wind energy and nuclear energy are amazing second options, but, oil energy is used almost everywhere. It is estimated that, with the current pace of use, oil and energy will be exhausted in the next 45 to 50 years. So I guess we have half a century to decide or come up with another alternative to oil energy. In this guide, I will be talking about the pros and cons of oil businesses and oil in general.

Here are some pros to start off with.

Crude oil is always readily available. Although crude oil has become a finite source, it is still readily available and billions of people use it. It is one of the most needed and used forms of energy along with natural gas and coal as well. There also exists a proper global infrastructure which supports and requires oil extraction, refining and transportation. After the refining process is done, oil is then sold. Since oil is readily available, it happens to be a cheap solution when it comes to meeting the global energy requirements. The world needs to run and the world is not ready to wait for renewable options. The world is behind oil energy and coal and it seems that a lot of companies do not care about destroying the environment. There are a lot of companies like Apple. Inc that are running on 100% renewable energy. I feel that we need to try and catch up with companies like Apple.

Oil Business

I understand that oil is highly versatile and has so many amazing uses. I urge you to use it responsibly. It also has a high energy density. It can be stored very easily. One of the other pros that I would like to mention is that oil energy can be constant.

Some cons of oil energy

Oil energy has been known to produce some horrible toxic gases into the environment, which has led to the destruction of clean air and a complete downfall of healthy ecosystems. Oil energy produces greenhouse gases and, that contributes to climate change. Oil leaks have been devastating when we are talking about the disgusting effect that it has had on oceans and seas. Millions of creatures have died because of oil spills. Finally, oil energy is nonrenewable. It means that there is a finite amount of oil left in the planet. We need to find an alternative as soon as possible.

The Pros And Cons Of Mining

Mining is famously known as the extraction of valuable minerals or even other geological materials from the earth which are usually in or form. The deposit form mineralised kind of package which is very economical in nature and it draws the interest to a lot of minors and the market as well. The owners which are recovered by the miners include coal, oil shale, gemstones, limestone, rock salt, gravel, dimension stone, metals and more. Mining is fundamentally required when it comes to opening any material that cannot actually be grown with the help of agricultural processes or even artificially created in a laboratory or a factory. Mining includes the extraction of nonrenewable resources from the earth, and this includes petroleum, natural gas or even water, in a lot of cases.

Mining Activity

Mining is an activity that involves the extraction of valuable materials from the surface of the earth and sometimes it can go deeper as well. Mining can either be surface mining or even underground mining. Mining is not only beneficial to the surrounding community and the public but it also poses a lot of risks when it comes to the community. In this list, I will be talking about some pros and cons of mining.

Here are some pros when it comes to mining.

Mining has been known to create jobs. The mining process results in the creation of thousands of opportunities for local people and it also attracts a lot of professionals in the particular markets. Mining process results in the rise of all kinds of business activities and also a skyrocketing change in the per capita income. This, in turn, results in a greater human development index which is caused because of life expectancy and per capita income. Mining also accounts for exportation purposes which results in enormous earnings to people who are working in mines and this boosts the financial sector. Mining activities also result in the proper extraction of oil, gas, iron ores, coal and other raw materials which provide energy.

Cons of mining

Here are some cons of mining.

Mining is one of the major reasons for water pollution. It results in the contamination of the soil and it completely destroys the groundwater because of the chemicals which are used in mining zones. The contaminated groundwater sometimes flows into rivers and lakes and kills most of aquatic life and contaminates the water, rendering it useless to human beings and other living creatures. Mining has also been one of the biggest reasons for deforestation. Mining in certain areas leads to the destruction of trees and forests. The clearing of trees contributes to climate change. Thousands of species of animals have lost their homes because of mining activities. Mining also contributes to landslides. Improper and illegal mining can result in natural calamities like landslides and floods, which leads to the death of people and animals.

5 Biggest Iron Ore Mines in the World

Mining ores are present all across the globe, but the size differs from one location to another depending on the natural conditions. Minerals keep producing beneath the surface of the earth and have been replenishing to provide the humans with essentials. Of all the natural resources that are produced, iron is one mineral that the world needs in large amounts. Mines for the metal are located in several parts of the planet, and they have been contributing immensely to the total production. Brazil has five big iron ores, making the country the largest producer of iron. Australia and Africa also have massive iron ores that make for a critical part of the total output. Let us have a look at the biggest iron ore mines in the world.

1. Carajas, Brazil

Holding around 7.27 billion tonnes of reserves, Cajaras is a Vale-owned mine in the state of Para. The Serra Sul, Serra Leste, and Serra Norte iron ore deposits are the targeted spots in the Carajas District for the open-pit mining operation. Vale is implementing an expansion project that has been estimated for about $19.6 billion in the Carajas mining complex. The project that focusses on the development of a new mine is named Carajas Serra Sul S11D Iron project. This mine started its operation in 2016 and managed to reach its peak production rate in 2018. Carajas is expected to have a mining life of up to 2065.


2. Samarco Alegria, Brazil

Samarco Alegria is the second-biggest iron ore mine in the world. It is located in the state of Minas Gerais in Brazil, and it contains around 2.98 billion tonnes of iron ore. Alegria North and Alegria South are the two active pits for the open-pit mining operation in Samarco Alegria. Both these have been operational since 2000, and they are a joint venture by Vale and BHP Billton. This mine is estimated to produce iron up to 2053.

3. Minas Itabiritos, Brazil

The third biggest iron ore comprises four mines in the state of Minas Gerais. Joao Pereira, Sapecado, Galinheiro, and Segredo are the mines that have been producing around 2.78 billion tonnes since its peak in 2012. Galinheiro and Sapecado have been functional since 1948, and the Joao Pereira and Segredo started operating in 2003. Minas Itabiritos is estimated to have a mine life up to 2047.

Vargem Grande

4. Vargem Grande, Brazil

This Vale-operated mine site contains 2.53 billion tonnes of iron ore. It is located in the state of Minas Gerais, Brazil. Caitao do Mato, Tamandua, and Aboboras are the three open-pits in the Vargem Grande site. In 2012, the Vargem Grande produced a total iron ore of 22.6 million tonnes. This mine is expected to have a life up to 2058.

5. Zanaga, Republic of Congo

Zanaga is an open-pit iron ore mine that contains around 2.5 billion tonnes of ore. This project was developed in two stages with the first phase having developed 14 million tonnes of iron ore per year and the second phase with a capacity of 30 million tonnes per annum. Zanaga has an estimated mine life of 30 years.

Top 3 Producers of Oil in the World

Revenue generation of the oil industry has been immense, and the countries that have a galore of resources make for the list of the richest countries in the world. Domestic consumption isn’t the only aim behind fostering such a practice and business idea within a country. Export of oil products is the highest revenue-generating area for most of these companies. Extraction technology has been affecting the industry as the new oil discoveries are also in progress in several countries. More than half of the world’s crude oil production is attributed to the top five oil-producing nations. The crude oil and natural gas plant liquids are processed to form the oils, refined products, and lease condensate. Although several other energy sources are proliferating, oil remains to be an indispensable part in ensuring stability to the global economy. Here are the top countries that produce oil.

1.      United States

With an average of 17.87 million b/d, the United States stands at the top position in oil production. This accounts for around 18% of the world’s total oil production. In 2017, oil production in the US stood at 15.6 million b/d, which has grown over the past two years. The country has held on to this spot for more than six years now. Russia was on the second spot till 2012, and the US superseded that position that year. In the following year, the US surpassed the former leader Saudi Arabia in oil production to acquire the top spot. Fracking in the shale formation in North Dakota and Texas has been the reason for the increased oil production in the US. Since early 2011, the US has been a net exporter, meaning they have been an exceeding number of exports than imports.

Saudi Arabia

2.      Saudi Arabia

Around 12% of the world’s total oil production is attributed to Saudi Arabia with its contribution of 12.42 million b/d. The only member of the OPEC that has been on the top of this list is Saudi Arabia. The petroleum sector covers almost 42% of the country’s GDP, 90% of export earnings, and 87% of budget revenues. The major oil fields in Saudi Arabia are Safaniya, Ghawar, Qatif, Zuluf, Manifa, Khurais, Khursaniyah, Abqaiq, and Shaybah.

3.      Russia

Despite the fall in 2012, Russia has been producing an impressive amount of oil since then. With an average of 11.4 million b/d having been produced in 2018, the country still holds onto the top position. This amount of oil accounts for around 11% of the world’s total production. Siberia, Arkhangelsk, Krasnoyarsk, Komi Republic, Yakutiyta, Sakhalin, and Irkutsk are the main regions of oil production in Russia. The Samotlor fields in Western Siberia is the area that produces the highest amount of oil in the country. Russia’s oil industry has gone through an interesting journey that has gone down into history. Although the industry was privatized after the Soviet Union’s fall, the control was reverted to the state after a few years. Tafnet, Surgutneftegaz, Rosneft, and Gazprom Neft are the most prominent oil production companies in Russia.