I will provide a factoid which you MUST use it in order to relate to the reading I uploaded here (***You can either use the article of ‘Hobsbawm Industrial Revolution’ OR the article of ‘Adam Smith On the Division of Labor’ However, one of these articles MUST be used as the source/reference***) in this response paper (approximately 280 words in total).

Also, please add/address at least TWO quotes with (author last name and page number) from one of the particular readings I provided above in this response paper as well.

Factoid:

I found a factoid that relates to the capital in the production of petroleum.

There are two major sectors within the oil industry, upstream and downstream. For the purposes of this tutorial we will focus on upstream, which is the process of extracting the oil and refining it. Downstream is the commercial side of the business, such as gas stations or the delivery of oil for heat.

Oil Drilling and Services

Oil drilling and services is broken into two major areas: drilling and oilfield services.

◦ Drilling – Drilling companies physically drill and pump oil out of the ground. The drilling industry has always been classified as highly skilled. The people with the skills and expertise to operate drilling equipment are in high demand, which means that for an oil company to have these people on staff all the time can cost a lot. For this reason, most drilling companies are simply contractors who are hired by oil and gas producers for a specified period of time. (For related reading, see Unearth Profits In Oil Exploration And Production)

In the drilling industry, there are several different types of rigs, each with a specialized purpose. Some of these include:

◾ Land Rigs – Drilling depths ranges from 5,000 to 30,000 feet.

◾ Submersible Rigs – Used for ocean, lake and swamp drilling. The bottom part of these rigs are submerged to the sea’s floor and the platform is on top of the water.

◾ Jack-ups – this type of rig has three legs and a triangular platform which is jacked-up above the highest anticipated waves.

◾ Drill Ships – These look like tankers/ships, but they travel the oceans in search of oil in extremely deep water.