| 1. |
According to the worlds liquid fuel chart we see that the world’s demand for oil increased sharply rising from 78 million barrels per day in 2002 to 86 million barrels per day in 2007. |
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True |
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False |
| 2. |
In the OPEC surplus crude oil production capacity it is seen that in 2008 the oil spare capacity was more than 2 million barrels per day. |
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True |
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False |
| 3. |
Although there are numerous, complex, and interacting forces at work in the determination of crude oil prices, spare capacity is not an important weathervane, and an important cushion between short term changes in oil demand and long-term investments in oil field development. |
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True |
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False |
| 4. |
The biggest single component of retail gasoline prices is the cost of the raw material used to produce gasoline which is ____________________________. |
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Crude oil |
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Naphthalene |
| 5. |
Because the oil and natural gas industry is massive and requires huge investments, its earnings contribute greatly to the American economy and way of life. They allow companies to reinvest in the facilities, infrastructure and new technologies that keep America going strong well into the future while generating returns that meet shareholders’ expectations. |
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True |
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False |
| 6. |
The oil and natural gas industry is probably one of the world’s largest industries. Its revenues are large, but so are its costs of providing consumers with the energy they need. Among those are the cost of finding and producing oil and natural gas and the costs of refining, distributing and marketing it. These costs remain huge, regardless of whether earnings are high or low. |
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True |
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False |
| 7. |
The energy Americans consume today comes from industry investments made years or even decades ago. As seen in the oil and natural gas new investments and earnings chart, between 1996 and 2007, the U.S. industry invested more than $1.2 trillion in a range of long-term energy initiatives compared to net income or earnings of $974 billion. |
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True |
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False |
| 8. |
Climate change is an extraordinarily complex and challenging issue that _______________ in energy, environment and the economy in profound ways. |
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Has an impact |
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Does not have an impact |
| 9. |
U.S. oil and natural gas companies are pioneers in developing alternatives and expanding America’s use of virtually every form of energy – from geothermal to wind, from solar to biofuels, from hydrogen power to the lithium ion battery for next-generation cars. |
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True |
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False |
| 10. |
The oil and natural gas industry has spent over $21 billion developing substitute and less carbon intensive fuels, such as liquefied natural gas and reducing methane fugitive emissions. This investment in fuel substitution technologies represents 73 percent of the total invested in this technology class. |
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True |
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False |
| 11. |
Production of oil and natural gas on federal lands has brought millions of dollars of revenue into federal and state treasuries. These are one of the smallest sources of income to the federal government. |
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True |
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False |
| 12. |
The oil and natural gas industry takes its environmental responsibilities very seriously and works during every phase of development with – well planning and engineering, drilling practices and standards, the design of offshore rigs and other facilities, and the training of personnel – to prevent spills. |
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True |
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False |
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