We recently explained how oil and gas is transported around the the world, which has opened our readers’ eyes to see that oil and gas can be found all around us. From the tires on an airplane, to the cellphone in your pocket to your toothbrush, byproducts of the energy sector are ubiquitous. A lot of our subscribers send us questions every day about oil price predictions, statistics, research information and various other topics. We’ve decided to start disseminating some of our energy sector knowledge every week so people can rely on STEER not only as the bridge between the oil and gas industry and the community, but also as a knowledge base.
Let’s jump right into some oil and gas facts that everyone should know:
Texas Has Taken The Lead
California, Texas and Louisiana consistently account for over half of all domestic refining capacity in the United States. Texas leads the states in crude oil production and keeps about 5 billion barrels in reserve.
It doesn’t stop there. According to the U.S. Energy Information Administration:
- In 2016, Texas was the leading oil-producing state, producing more than one-third of the nation’s crude oil.
- As of January 2017, the 29 petroleum refineries in Texas were able to process more than 5.6 million barrels of crude oil per day and accounted for 30% of total U.S. refining capacity.
- Texas accounted for more than 25% of U.S. marketed natural gas production in 2016, making it the leading natural gas producer among the states.
Crude Oil: Not Just An Unrefined Commodity
Investopedia explains, “Crude oil is one of the most important commodities in the world. It’s an unrefined petroleum product composed of hydrocarbon deposits and other organic materials that can be refined to produce usable products such as gasoline, diesel and various types of petrochemicals.”
You might know that crude oil is measured in barrels, but you might not know that one barrel can produce about 10 gallons of diesel fuel, nearly 20 gallons of gasoline, almost 4 gallons of jet fuel and just over a gallon and a half of heating oil.
Crude oil is often considered the mother of all commodities because so much of it is used in many different ways, including (but not limited to) the manufacturing process of numerous household products. Long before all of our modern-day uses for oil and gas, our ancestors used oil as a medicine to treat frostbite, gout, and to treat sick animals. Our civilization has been using crude oil for over 5,000 years!
The United States Is A Major Oil Consumer
This should be of little surprise: The United States gets the nod as the country which uses the most oil at just under 20 million barrels a day. How much does this equate to over the course of a year? We represent just 4 percent of the world’s population, yet we consume around 25 percent of the oil produced. China and India boast the highest populations in the world, yet we use nearly two times the oil these countries use combined!
There are very good reasons we keep so much oil in reserves. After Hurricane Katrina, we were forced to use 11 million barrels of our reserves. At this very moment, we have about 21 billion barrels in reserves, which, in case of an emergency, is enough to last us for roughly eight years.
Oil is normally used to produce gas, diesel and kerosene, but what you might not know is it’s also used to make common synthetic fibers like nylon, polyester, vinyl and acrylic. We literally wear oil and gas everyday!
As you can plainly tell, use cases for the energy sector span many years and industries. In a way, both oil and gas have transcended traditional uses, and more creative and efficient uses are being innovated everyday. How will you use oil today, tomorrow, next week and in the coming years? The only way to stay up-to-date with this fast-paced industry is to subscribe to our newsletter and follow us on Facebook and Twitter. Have questions we haven’t answered yet? Send us a message us at firstname.lastname@example.org.