20 Best Oil and Gas Interview Questions & Answers
Oil and Gas industry deals with extracting, refining and selling crude oil. Basically the entire work in this system is also divided further into various sub sectors where the people associated with extraction are a complete different industry than the ones who are refining it and selling it. If you are applying for a job in a company which deals with refining and selling the fuel, then here are the 20 best interview questions for oil and gas interviews:
1. What are the factors that determine the prices of the crude oil?
Ans: The cost of the crude oil is basically determined on the factor of demand and supply.
2. What is OPEC?
Ans: OPEC is an Organization of Petroleum Exporting Countries.
3. Name a few members of the OPEC?
Ans: List the countries which export petroleum such as UAE, Saudi Arabia, Indonesia, Iran, Iraq, Qatar, Libya, Nigeria, Angola, Algeria, Kuwait, Venezuela and other Gulf Countries.
4. What is the supreme moto behind the formation of the OPEC?
Ans: OPEC was formed in 1960 as an organization of countries that export petroleum. It was formed the crude trade globally and also to decide prices of the oil.
5. What are the total different categories of crude found worldwide and how are they classified?
Ans: There are around 161 different categories and they are classified on the basis of sulphur content present in the oil.
6. What is API?
Ans: API stands for American Petroleum Institute.
7. What is API gravity?
Ans: API gravity is a measure where a sample of petroleum is somepard with water and is determined how heavy or light it is compared to water. If the API gravity is greater than 10, then the petroleum is lighter and it floats on water, else if it is lesser than 10 then it is heavier and sinks inside the water.
8. How is API gravity calculated?
Ans: API gravity equals to the ratio of 141.5 to the specific gravity the whole then subtracted by 131.5.
API gravity = (141.5/specific gravity) - 131.5
9. Which stock exchange markets are responsible for deciding the crude prices globally?
Ans: International Petroleum Exchange in London (IPE), Singapore International Monetary Exchange (SIMEX) and New York Mercantile Exchange ( NYMEX).
10. What is the role of the US dollar in pricing the crude oil?
Ans: Oil is priced in US dollars, if the price of a dollar goes down then the prices of other currencies increases and the same countries can buy more oil at same price. Which increases the demands, hence again rises the dollar.
11. What is the cost structure for a gallon of gasoline?
Ans: The cost is distributed as 67% for the crude oil, 13% for refining, 8% marketing costs and 12% taxes.
12. What share of the dollar does each company earn on gas?
Ans: Of each dollar earned in the sales, the oil and natural gas companies earn 8.6% share of it.
13. What factors are responsible behind the fluctuation of gasoline prices?
Ans: Increasing demand, Price of Dollar, Expected or Unexpected outages and supply disruption.
14. What is the proportion of ethanol content in gasoline?
Ans: About 10-15% of the complete gasoline volume.
15. Who is EIA?
Ans: EIA is Energy Information Administration, which is the independent administrating agency of the Energy department in the United States. It gives weekly data about the supply of oil in the U.S.
16. How does EIA present its report?
Ans: It schedules weekly publications known as WEEKLY PETROLEUM STATUS REPORT and THE WEEK IN PETROLEUM. The reports elaborate about the rising demands, prices, sales, business shares, etc.
17. How would you describe the company’s leadership philosophy?
Ans: The company assigns us projects and wants to work in a team and the work is distributed to all the members by one person, who infect is the leader of the team. The leader is very experienced person and the company wants the other employees to follow his instructions and work as a team. That person is entirely responsible for the team’s performance.
18. Suppose you are given the chance to decide the prices of crude oil, what strategy will you use?
Ans: Suggest a strategy which practically possible and helps the industry gain a lot of profit.
19. Suppose that day comes when there is no drop of crude left on earth, what new ways would come up with to support your company?
Ans: Suggest them that you will try to invent ideas to convert ethanol as an efficient fuel, you can also suggest them with bio-gas plants.
20. Suggest some measures that can be taken to decrease the pollution level from gasoline.
Ans: By refining it to its purest form and also minimizing the content of Lead from it.