Petroleum

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## Contents

* 1 Background
* 2 Production
* 2.1 Refining
* 3 Production and consumption data
* 4 Environmental impact
* 4.1 Industry practices
* 5 Economic impact
* 6 Recent news
* 7 Energy in the 50 states
* 8 See also
* 9 Footnotes

Petroleum is a thick, naturally occurring mixture of solid, liquid, and gaseous hydrocarbons and sulfur that is used for fuel and as raw material for multiple products, including consumer products. Petroleum can be separated into gasoline, kerosene, fuel oil, paraffin wax, asphalt, and more.[1][2][3]

Petroleum as a category encompasses crude oil and petroleum products, though the terms petroleum and oil can sometimes be used interchangeably. Crude oil is a mixture of hydrocarbons in liquid form located underground and remains a liquid as it is extracted from geological formations. The term crude is used because the oil must be refined before it can be used as a fuel or to make petroleum-derived products. Types of crude oil, which include light, intermediate, and heavy oil, are classified by where the oil is from and its weight and viscosity.[4]

## Background[edit]

Petroleum is composed of animal and plant remains covered by layers of sand, rock, and silt. Several millions of years ago, dead organic matter was left behind by receding oceans and swamps. Over time, the remains decayed as sedimentary basins became more oxygen deficient. Layers of sediment eventually covered over the animal and plant remains, and these layers were later compressed into rock. After heat and pressure from the rock were impressed on the remains over millions of years, the decayed matter turned into petroleum (crude oil). The physical composition of petroleum depends on where it is found. In general, petroleum consists of between 83 percent to 87 percent carbon, 11 percent to 16 percent hydrogen, 0 percent to 4 percent oxygen and nitrogen, and 0 percent to 4 percent sulfur.[2][5]

## Production[edit]

Example of a sediment basin

Geologists study rock layers underneath the Earth's surface to locate petroleum resources. Seismic surveys can be used to produce echoes from vibrations in order to detect the location of oil reserves. If enough petroleum is found from an exploratory well that has been drilled and tested, oil producers will drill a developmental well. Vertical drilling is used to access petroleum resources directly below the drilling site, while directional and horizontal drilling are used to access petroleum reserves that cannot be accessed solely through a vertical well. Some petroleum may require specific technologies and/or procedures to force the petroleum from the ground and up through a well (known as unconventional production), while other sources of petroleum may flow to the surface due to natural pressure (conventional production). According to the U.S. Energy Information Administration, "In the United States, most of the new oil and natural gas production activities on land use unconventional production technologies." One type of unconventional oil extraction is hydraulic fracturing, also known as fracking. Fracking involves injecting fluid into subterranean rock formations at high pressure. The high pressure fluid produces a fracture network that allows crude oil inside dense rocks to flow into a wellbore and be extracted at the surface. After petroleum is extracted from wells in an oil field, it is then transported to refineries through pipelines, trains, barges, or trucks. If the petroleum will be shipped overseas to other countries, it is delivered to ports to be loaded onto oil tankers.[6][7]

### Refining[edit]

See also: Refining process

Refining involves altering petroleum into usable, consumable products such as gasoline, diesel, jet fuel, fuel oil and other petroleum-derived products. When crude oil is refined, it is heated until it becomes a gas. The gas is then transferred into a distillation container where it is cooled. As the gas cools into liquid form, the liquid is pulled off at certain heights depending on the desired end product. According to the U.S. Energy Information Administration, one barrel of oil (42 gallons) produces approximately 19 gallons of gasoline, 12 gallons of diesel as well as some remaining petroleum to be used in other consumer products. As of January 1, 2016, the United States had a refinery capacity of 18.3 million barrels of crude oil per day at 149 U.S. refineries.[8][9]

## Production and consumption data[edit]

The graphs below show total petroleum production and consumption of refined petroleum products by world region, according to the U.S. Energy Information Administration. The data used in these graphs are available in the tables below.[10][11]

|

Petroleum production by region (and in the United States), 2012-2016
(in thousand barrels per day)

Region or country | 2012 | 2013 | 2014 | 2015 | 2016
Africa | 9,915.14 | 9,261.25 | 8,742.55 | 8,644.16 | 8,199.56
Asia & Oceania | 9,484.03 | 9,495.97 | 9,641.89 | 9,793.82 | 9,505.17
Central & South America | 7,991.52 | 8,106.78 | 8,393.19 | 8,581.46 | 8,272.11
Eurasia | 13,608.02 | 13,782.08 | 13,901.89 | 14,111.65 | 14,229.87
Europe | 3,993.40 | 3,812.11 | 3,857.99 | 4,021.46 | 4,073.37
Middle East | 27,881.29 | 27,472.76 | 27,938.19 | 29,391.41 | 30,999.57
North America | 17,905.34 | 19,357.04 | 21,346.84 | 22,259.43 | 21,885.93
United States | 11,108.70 | 12,368.90 | 14,131.77 | 15,123.49 | 14,827.26
World | 90,778.73 | 91,287.99 | 93,822.54 | 96,803.37 | 97,165.59
Source: U.S. Energy Information Administration, "International Energy Statistics"

Consumption of refined petroleum products by region (and in the United States), 2010-2014
(in thousand barrels per day)

Region or country | 2010 | 2011 | 2012 | 2013 | 2014
Africa | 3,522.81 | 3,445.03 | 3,644.16 | 3,809.26 | 3,989.29
Asia & Oceania | 28,000.28 | 28,871.90 | 30,041.40 | 30,755.40 | 31,184.80
Central & South America | 6,604.79 | 6,738.19 | 7,050.60 | 7,107.84 | 7,273.48
Eurasia | 4,329.00 | 4,668.50 | 4,643.70 | 4,663.80 | 4,914.00
Europe | 15,391.00 | 14,900.10 | 14,406.80 | 14,252.00 | 14,172.40
Middle East | 7,663.31 | 7,839.80 | 8,230.56 | 8,221.61 | 8,513.94
North America | 23,662.70 | 23,419.20 | 23,074.20 | 23,514.20 | 23,562.90
United States | 19,180.0 | 18,882.0 | 18,490.0 | 18,961.0 | 19,106.0
World | 89,176 | 89,882 | 91,093 | 92,325 | 93,609
Source: U.S. Energy Information Administration, "International Energy Statistics"

## Environmental impact[edit]

See also: Oil and natural gas pollution

Pollution can result from the production, distribution, and use of petroleum. The most common forms of oil pollution are air and water pollution. In sufficient amounts, any chemical can be toxic (harmful to living organisms). Thus, toxicity depends on the dose or amount of a chemical to which an organism has been subjected.[12][13][14][15][16][17]

Air pollutants result from burning oil. In addition, pollutants can leak out of storage tanks during oil production and distribution. Different kinds of oil emit different amounts of a pollutant depending on the oil's content. For example, when oil is burned for electricity, sulfur dioxide, mercury compounds, and nitrogen oxides are produced. On average, 12 pounds of sulfur dioxide and four pounds of nitrogen oxides are emitted per megawatt hour of electricity generated from burning oil. Other air pollutants released by oil can include volatile organic compounds (such as benzene) and particulate matter (small particles of dust). Oil can also spill from oil tankers into the ocean or on land through pipeline leaks, railroad accidents, natural seeping into soil, or poor oil storage.[18][19]

Air pollutants from petroleum use are regulated by the federal and state governments under the Clean Air Act. Waste from petroleum production is regulated under the Resource Conservation and Recovery Act.[20][21]

### Industry practices[edit]

Oil producers adopt safety equipment and procedures aimed at preventing pollution and responding to spills or leaks. Equipment and procedures include the following:[22][23]

Equipment

* Oil production facilities use blowout preventers, which are specialized valves or similar devices used to monitor and prevent the uncontrolled release of natural gas or crude oil from a well.[24]

* Oil and natural gas pipelines have computers, electromagnetic devices, and ultrasonic instruments to detect potential vulnerabilities in pipeline equipment and alert employees who can conduct repairs in real time.[25]

* Some oil tankers are double-hulled tankers. A double hull is a ship design in which the sides and bottom of a ship have an outer hull layer and an inner hull layer. Double-hulled tankers are used to decrease the likelihood of leaks or spills.[26]

Diagram of the types of directional wells

* Above ground and underground storage tanks have leak prevention technology, such as oil and water separators and overfill sensors. An oil and water separator is used to recover oil spilled during the refining process. The device separates the oil from water and/or other solids and directs the oil out of the tank through a pipe via gravity or a pump. Meanwhile, the water is collected for removal through a separate pipe. Overfill sensors are found in the roof of a storage tank. They identify a specific level of petroleum production and trigger an automatic shut-off valve to prevent overfilling in a tank.[27][28]

* Horizontal drilling (also known as directional drilling) is used to access oil reserves that are not located directly underneath a drilling rig. Some oil and gas producers argue that directional drilling techniques allow operators to access oil and gas without disturbing nearby surface and subsurface lands.[29]

Procedures

* Oil producers adopt protocols and maintenance procedures to prevent spills and leaks. Spill, Prevent, Control, and Countermeasure Plans (SPCC) outline specific pollution prevention procedures. These documents and practices are shared between producers in the industry. The procedures require regular testing and inspection of pollution prevention equipment and processes.[30]

* Oil industry employees, such as equipment operators, are trained on prevention measures and emergency procedures. Tanker crews may use three-dimensional simulators in employee training. Instructors may control or revise these simulations to test employees on their responses to simulated real-time conditions.[31]

* A catalog of standards covering employee training is shared across the oil industry. In addition, oil producers provide training courses as well as certification programs aimed at improving employee performance.[31]

## Economic impact[edit]

See also: Gasoline prices

The price of petroleum can affect national economies in different ways. Higher petroleum (oil) prices can result in job growth and higher investment in the petroleum industry. On the other hand, high oil prices can increase the costs of manufacturing for businesses. In turn, these higher costs can be passed down to consumers in the form of higher prices. Further, gasoline prices are affected by the price of oil. Higher oil prices generally result in higher gasoline and thus transportation costs for consumers. Lower oil prices can negatively affect domestic oil companies and their employees. Additionally, oil companies have less of an incentive to devote time and resources to drilling for oil when prices are low. On the other hand, low oil prices can benefit businesses and manufacturers, and lower gasoline prices can bring down transportation costs for businesses and individuals. As a result, individuals and businesses have more disposable income to be used in other parts of the economy.[32]

Petroleum is a major source of energy for businesses and individuals. According to the U.S. Energy Information Administration, petroleum accounted for approximately 37 percent of total energy use in the United States in 2016. Approximately 71 percent of petroleum use occurred in the transportation sector in the form of gasoline, diesel fuel, and jet fuel, followed by around 24 percent in the industrial and manufacturing sectors. The remaining petroleum was used for residential and commercial buildings and to generate electricity.[33][34]

According to the U.S. Bureau of Labor Statistics, the oil and natural gas extraction industry employed approximately 177,100 individuals as of January 2017. As of January 2017, the average hourly earning of oil and gas production and nonsupervisory employees was $35.35; the average weekly hours worked by these employees was 44.4 hours as of January 2017. In 2016, petroleum engineers earned an average annual wage of $151,630. Petroleum pump system operators, oil refinery operators, oil gaugers earned an average annual wage of $64,530. As of May 2016, the average annual wage for all occupations in the oil and gas extraction industry was $90,310.[35][36]

A September 2013 study published by IHS, a business and governmental data analysis organization, concluded that an increase in unconventional petroleum and natural gas production (production that uses technology to force petroleum or gas from the ground and up through a well) increased disposable income per U.S. household by an average of $1,200 in the year 2012. The study's authors argued that this increased income came in the form of lower energy bills and lower costs for goods and services The full study can be accessed here.[37]

## Recent news[edit]

The link below is to the most recent stories in a Google news search for the terms Petroleum United States. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

Petroleum - Google News

## Energy in the 50 states[edit]

Click on a state below to read more about that state's energy policy.

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## See also[edit]

* Oil

* Natural gas

* Horizontal drilling

* Glossary of energy terms

## Footnotes[edit]

1. ↑ U.S. Energy Information Administration, “Glossary, P” accessed January 29, 2014
2. ↑ 2.0 2.1 U.S. Geological Survey, "Organic Origins of Petroleum," December 5, 2013
3. ↑ American Association of Petroleum Geologists, "What Is Petroleum?" accessed April 11, 2017
4. ↑ U.S. Energy Information Administration, "What is the difference between crude oil, petroleum products, and petroleum?" December 8, 2014
5. ↑ Penn State University, "Petroleum," accessed August 14, 2015
6. ↑ U.S. Energy Information Administration, "How was crude oil formed?" accessed April 11, 2017
7. ↑ U.S. Energy Information Administration, "How is crude oil found and produced," accessed April 11, 2017
8. ↑ U.S. Energy Information Administration, "Refinery Capacity Report," January 1, 2016
9. ↑ U.S. Energy Information Administration, "Frequently Asked Questions," May 30, 2013, accessed March 18, 2014
10. ↑ U.S. Energy Information Administration, "International Energy Statistics - Production," accessed April 11, 2017
11. ↑ U.S. Energy Information Administration, "International Energy Statistics - Consumption," accessed April 11, 2017
12. ↑ Merriam Webster, "toxic," accessed August 13, 2015
13. ↑ New York Department of Health, "What You Know Can Help You - An Introduction to Toxic Substances," accessed August 13, 2015
14. ↑ Scientific American, "Strange but True: Drinking Too Much Water Can Kill," June 21, 2007
15. ↑ National Oceanic and Atmospheric Administration, "Greenhouse gas benchmark reached," May 6, 2015
16. ↑ The University of Waikato, "Measuring toxicity," accessed August 13, 2015
17. ↑ National Oceanic and Atmospheric Administration, "Toxic Levels of Concern," accessed August 13, 2015
18. ↑ U.S. Environmental Protection Agency, "Oil," September 25, 2013
19. ↑ Earthworks, "Air Contaminates," accessed August 13, 2015
20. ↑ U.S. Environmental Protection Agency, "Air Quality Trends (1980-2013)," accessed July 24, 2015
21. ↑ U.S. Environmental Protection Agency, "Resource Conservation and Recovery Act (RCRA)," accessed August 11, 2014
22. ↑ American Petroleum Institute, "Environmental Principles," accessed February 7, 2017
23. ↑ Oil Spill Prevention and Response, "Refineries and Storage," accessed February 7, 2017
24. ↑ Schlumberger, "Blowout preventer," accessed February 7, 2017
25. ↑ Oil Spill Prevention + Response, "Equipment," accessed February 7, 2017
26. ↑ Marine Insight, "Single Hull Vs Double Hull Tankers," accessed February 7, 2017
27. ↑ Containment Solutions, "Underground Oil/Water Separators," accessed February 7, 2017
28. ↑ Varec, "Overfill Prevention," accessed February 7, 2017
29. ↑ NaturalGas.org, “Directional and Horizontal Drilling,” accessed January 28, 2014
30. ↑ Oil Spill Prevention and Response," accessed February 7, 2017
31. ↑ 31.0 31.1 Oil Spill Prevention and Response," accessed February 7, 2017
32. ↑ Investopedia, "How Oil Prices Impact the U.S. Economy," March 25, 2015
33. ↑ U.S. Energy Information Administration, "Table 1.3: Primary Energy Consumption by Source," accessed April 11, 2017
34. ↑ Institute for Energy Research, "Petroleum," accessed April 11, 2017
35. ↑ U.S. Bureau of Labor Statistics, "Oil and Gas Extraction: NAICS 211," accessed April 11, 2017
36. ↑ U.S. Bureau of Labor Statistics, "May 2016 National Industry-Specific Occupational Employment and Wage Estimates - NAICS 211100 - Oil and Gas Extraction," accessed April 11, 2017
37. ↑ IHS Markit, "U.S. Unconventional Oil and Gas Revolution to Increase Disposable Income by More than $2,700 per Household and Boost U.S. Trade Position by More than $164 billion in 2020, New IHS Study Says," September 4, 2013

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