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Oil Facts:
Does the U.S. export oil?
Surprisingly, yes - but the
amount is trivial, about 20,000
barrels per day vs. our
10,000,000 and more b/d imports.
All exported crude goes to
Canada, where it is likely
refined and sent back as
gasoline.
Did You Know?
There are essentially NO
major-brand retail gas stations
whose product derives from US
sources only, and basically all
of them have Middle East oil as
a significant proportion of
their source crude - because if
refineries used only American
oil, they would be incapable of
making the volumes that we
demand - a 60% shortfall. A few
small regional refiner-producers
may use MOSTLY American oil, but
even they likely use purchased
oil - with imported origins - to
produce the volumes of gasoline
that are demanded by the
American public. In addition to
all the crude imported, the U.S.
must import about 66 million
gallons of refined gasoline
because our refineries can't
make enough
US OIL DEMAND, 2004: Over 20
million barrels per day, up from
January 2002, when demand was
about 18.5 million barrels per
day, = 777 million gallons. If
lined up in 1-gallon cans, they
would encircle the earth at the
equator almost 6 times (about
147,000 miles of cans) — every
day. Here's another image: EVERY
DAY, the US consumes enough oil
to cover a football field with a
column of oil 2500 feet tall.
That's 121 million cubic feet.
55-60% of US consumption is
imported at a cost of $50
billion+ per year, amounting to
the largest single element of
our trade deficit. In summer
2004, thanks to higher prices,
increased demand, and lower
production, record trade
deficits of more than $50
billion per month were recorded,
with approximately 30% of that
attributable to imported energy
costs. In September 2004, the US
reported its lowest monthly oil
production in 55 years, at an
average of 4.85 million barrels
per day.
In
March 2004, the total trade
deficit was about $46 billion
for the month, and oil imports
were about 11 million barrels
per day x $40 per barrel x 30
days per month = $13.2 billion,
or about a quarter of the total
trade deficit for the month. If
March served as an average for
the year, the total value of oil
imports for 2004 would be about
$156 billion — but this number
depends on volume of imports
(which is unlikely to decrease)
and price of oil (which is
likely to fluctuate). UPDATE
2005: For November 2005, oil
imports cost the US $24 billion,
and amounted to more than
one-third of the trade deficit.
US demand for natural gas is
increasing, and production in
many long-time prime producing
areas (e.g. the Gulf Coast) is
diminishing to the point of
near-total depletion. Without
significant increases in
drilling (well beyond
anticipated levels), demand is
predicted to significantly
exceed supply soon. By 2000, US
demand (22.2 tcf/year) exceeded
production (18.7 tcf/year)
enough that about 14% of our
natural gas was being imported
from Canada. This may provide a
window of opportunity for
explorationists and producers
(especially smaller operators),
and may improve the domestic
market for geoscientists. Note
that it is currently impossible
(without complex liquefaction)
to transport natural gas across
oceans -- so huge gas reserves
in the Nile Delta, for example,
are irrelevant to US needs.
US PRODUCTION, early 2002:
About 5.9 million barrels of oil
per day, plus about 2 million
barrels of natural gas liquids
and condensate; and 55 billion
cubic feet of gas per day. Oil
production is a decline from 8-9
million b/d in 1986. Update,
2005: at the end of 2005, US
crude oil production stood at
4.86 million b/d, the lowest
value in more than 50 years.
Imports (10.01 million b/d)
amounted to 67% of consumption.
As shown in the figure at left,
even when US production was at
its peak in 1970 (and accounted
for more than 40% of all the oil
produced in the world), it could
not keep up with consumption.
Today's 21 million barrels per
day consumption FAR outpaces our
domestic production of 4.86
million barrels per day.
Prudhoe Bay's contribution
is shown in red. US oil
consumption exceeds the total of
the next 5 largest consumers -
China, Japan, Russia, Germany,
and India COMBINED.
Source • From 1990 to 2007,
US production decreased by 31%
at the same time as consumption
increased by 24%.
World's other largest producers:
Former USSR (once the world's
largest producer) production has
declined more than 30% since
1988, from more than 12 to about
8 million barrels per day. In
the early 2000s, production in
Russia is recovering, and new
production in Kazakhstan is
coming on-stream. Saudi Arabia
produces about 5 to 9 million
barrels per day (7.3 million in
early 2002; production depends
more on OPEC quotas and prices
than on real capability).
US crude-oil production
capacity, about 5 million
barrels per day, is accomplished
with about 510,000 oil wells,
averaging 10.5 barrels per well
per day. (That's more than half
of all the producing oil wells
in the world. The country
with the most wells, after the
US, is Russia at about 110,000;
then China with around 80,000,
and Canada with 68,000. World
total producing oil wells is
about 880,000.) Saudi capacity,
at about 8-9 million barrels per
day, is from 1500 wells —
averaging more than 5,000
barrels per well per day. The
best well in the onshore 48
states is in Grant Canyon Field,
Nevada, producing about 4000
barrels per day from sucrosic
Devonian dolomites in a small
fault block.
Oil
and Gas are used for much more
than fuel. Every time you brush
your teeth (nylon bristles),
drink milk or soda from a
plastic container, or play a
plastic CD.
And let's not forget that 52% of
the US's electricity is still
generated by burning coal. The
rest of our electricity (January
2005) is produced by nuclear
plants (20%), burning natural
gas (15%), burning oil (3%),
hydropower (7%), and other such
as burning wood, geothermal,
solar, wind, and miscellaneous
(2%). In contrast to US usage,
France obtains about 75% of its
electricity supply from nuclear
energy sources. The US produces
twice as much electricity from
nuclear sources as France,
although that is only 20% of the
US total.
In
terms of total US energy usage,
the breakdown by source is given
in the following table (for late
2001):
|
Energy Source |
Percentage of total |
|
Petroleum |
42%
|
|
Coal |
24%
|
|
Natural Gas |
20%
|
|
Nuclear |
8%
|
|
Hydro power |
2%
|
|
Solar, Wind, etc. |
2%
|
Did You Know? The
US oil industry lost more than
1,000,000 jobs from 1986-92,
more than the more-publicized
auto and steel industries
combined.
OIL
WORLD
PRODUCTION/CONSUMPTION:
Production in 2004 averaged
about 83.02 million barrels per
day, about equal to the world
consumption at 82.46 million
barrels per day in 2004 (up from
about 74 million b/d in 2002).
Consumption is increasing at a
faster rate than the increase in
production. And at the end of
2005, World demand was expected
to exceed world refinery
capacity for the first time -
demand of 84 million barrels per
day vs. 83.5 million barrels per
day refinery capacity.
Did You Know?
A
42-gallon barrel of oil makes
about 19.5 gallons of gasoline.
Compiled by Dick Gibson, Gibson
Consulting, 301 N. Crystal St.,
Butte, MT 59701
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