Lesson 5 Activity
Take a look at the value chain for energy commodities (figure 1 above). Review the lesson slides and think about the various parts of the crude oil value chain. Do some research and extract 5 cost items associated with the value chain.
For example: According to EIA, transportation cost for shipping crude oil from Cushing, OK to the U.S. Gulf Coast, without pipeline constraints, is estimated to be around $3.50/bbl. (EIA 2017)
- We know that the amount of crude oil the US imports continues to decline due to increased domestic production, but, do you see demand increasing or, decreasing, over the next decade? What are your reasons for this stance?
You will be graded on the quality of your responses. This question is worth up to 20 points on the EBF 301 grading scale; each question is worth up to 10 points.
The Fundamental Factors activity is due as usual this week, at 11:59 pm on Sunday, and is worth 30 points on the EBF 301 grading scale. Please refer to the Fundamental Factors Instructions for additional information and grading rubric.
Submitting Your Work
Petroleum Products Activity: Submit your work as a word processed document to the Petroleum Products Activity on Canvas.
Fundamental Factors: Submit your work as a single word processed document to the Lesson 5 Fundamental Factors Activity in Canvas.