Question

Petroleum is called “Liquid Gold” because _____________
A. It is used in all economic activities.
B. It is a very costly fuel.
C. It is available in a liquid state.
D. It is available beneath the ocean beds.

Answer 1

Hint: Petroleum is an expensive form of fossil fuel and is available in liquid form, throughout the world. Due to the high demand and limited resources, the fuel’s price is never constant and there is a certain monopoly over it.

Complete answer:
Petroleum, which is also referred to as crude oil, is a non-renewable form of mineral found in nature that is found under the Earth’s surface in various geological formations. It is used as fuel all over the world. Since various countries have a monopoly over the production of petroleum, the market value of this fossil fuel is extremely high. Till 1999, the prices of crude oil were pretty consistent throughout the world, but since 1999 there has been a gradual increase in the price. One of the main reasons for this was the rising oil demand in countries like China and India. Due to such high market value, the above-mentioned fossil fuel is compared to gold. The chemical assembly of petroleum is diverse, consisting of hydrocarbon chains of diverse lengths. Due to this, petroleum may be taken to the oil processing plant, and the hydrocarbon chemicals detached by decontamination and treated by additional chemical procedures, to be used for an assortment of tenacities. The entire cost per plant is about 9 billion dollars.

Thus, option (B) is correct.

Note: The rising oil costs might negatively impact the global economy. The supply of petroleum and natural is one of the most essential things for modern agricultural practices, the increase in the price of oil will increase the price of agricultural products and a rapid increase in food prices. This has happened in the yesteryears and the possibility of this happening again is not very low.