Petroleum Facts
Strategic Petroleum Reserve – Profile
The Strategic Petroleum Reserve (SPR), filled to capacity at 727 million barrels, is the world’s largest supply of emergency crude oil. The federally-owned oil stocks are stored in huge underground salt caverns along the coastline of the Gulf of Mexico.
Decisions to withdraw crude oil… Read more
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Origins
The Gulf of Mexico was a logical choice for oil storage sites. More than 500 salt domes, known to be an inexpensive and secure means of petroleum storage, are concentrated along the coast. Also, the Gulf Coast is the location of many U.S. refineries and distribution points for tankers, barges and pipelines… Read more
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Inventory
Current inventory - Visit source site below
Highest inventory - The SPR completed its fill program on December 27, 2009. Today’s inventory of 726.6 million barrels is the highest ever held in the SPR. Actual physical capacity is 727 million barrels.
Previous inventory milestones -
- 2008. Prior to Hurricane Gustav coming ashore on September 1, 2008, the SPR had reached 707.21 million barrels, the highest level ever held up until that date. A series of emergency exchanges conducted after Hurricane Gustav, followed shortly thereafter by Hurricane Ike, reduced the level by 5.4 million barrels.
- 2005. Prior to the 2008 hurricane releases, the former record had been reached in late August 2005, just days before Hurricane Katrina hit the Gulf Coast. Hurricane Katrina emergency releases of both crude oil sales and exchanges (loans) totaled 20.8 million barrels.
Crude oil inventory distribution -
- Bryan Mound – holds 254 MMB in 20 caverns – 78 MMB sweet and 176 MMB sour.
- Big Hill – holds 170.1 MMB in 14 caverns – 73 MMB sweet and 98 MMB sour.
- West Hackberry – holds 228.2 MMB in 22 caverns – 120 MMB sweet and 108 MMB sour.
- Bayou Choctaw – holds 73.2 MMB in 6 caverns – 22 MMB sweet and 52 MMB sour.
Current storage capacity - 727 million barrels
Fill status - The SPR completed fill on December 27, 2009 with a cargo that arrived and began to unload on Christmas Day. The cargo was 493,000 barrels of Saharan Blend, a light sweet crude that ws delivered to the Bryan Mound site.
Current days of import protection in SPR - 75 days (based on EIA data of 9.70 million barrels/day for 2009 net petroleum imports 2009). Note: the maximum days of import protection ever held in the SPR was 118 days in 1985.
International Energy Agency requirement - 90 days of import protection (both public and private stocks). The United States fulfills its commitment with a combination of SPR stocks and industry stocks.
Average price paid for oil in the Reserve - $29.76 per barrel
Drawdown Capability
- Maximum drawdown capability - 4.4 million barrels per day
- Time for oil to enter U.S. market - 13 days from Presidential decision
Source: US Department of Energy
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Petroleum Fuels
Petroleum fuels make up the vast majority of energy consumed in the U.S. transportation sector. According to the Energy Information Administration’s Annual Energy Outlook 2006, the United States consumed over 15 million barrels per day of petroleum products in 2004, and consumption is expected to increase to nearly 26.1 million barrels per day by 2025. Additionally, U.S. refineries have been operating at full capacity in recent years to meet current U.S. demand.
Source: US Department of Energy
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Ultra Clean Fuels
In 2001, DOE agreed to fund 50 percent of a $26 million project with ConocoPhillips and its partners to perform comprehensive life-cycle systems analysis and techno-economic comparisons of producing ultra clean fuels from stranded natural gas.
The life-cycle results will be compared to… Read more
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Advanced Syngas Production
The ITM technology combines the two steps of autothermal reforming – air separation and natural gas reforming – into one step. Natural gas and steam enter on one side of the membrane and air enters on the other. Oxygen from the air passes through the membrane and reacts with the natural gas and steam mixture on the other side to produce synthesis gas. By combining two steps into one, the process can potentially reduce the capital cost by 30% compared to… Read more
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Enhanced Oil Recovry/CO2 Injection
Program Goal
Enable enhanced recovery of the nation’s “stranded” oil resources. DOE’s program focuses on evaluating possible candidate locations for future CO2 injection enhanced oil recovery, utilizing CO2 from industrial sources, as well as geologic sources… Read more
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Alabama Injection Project Aimed at Enhanced Oil Recovery, Testing Important Geologic CO2 Storage
DOE-Sponsored Citronelle Project Appears Ideal Location for Concurrent CO2 Sequestration and EOR Operations
In the United States, CO2 injection has already helped recover nearly 1.5 billion barrels of oil from mature oil fields, yet the technology has not been deployed widely. It is estimated that nearly 400 billion barrels of oil still remain trapped in the ground… Read more
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Gasoline — A Petroleum Product
Gasoline is a nonrenewable fuel made from petroleum. Refineries in the United States produce about 19 gallons of gasoline from every 42-gallon barrel of crude oil that is refined. The rest of the barrel gets turned into other petroleum products like diesel fuel, heating oil, jet fuel, and propane.
Source: US Energy Information Administration
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Gasoline changes with the seasons.
The main difference between winter- and summer-grade gasoline is their vapor pressure. Gasoline vapor pressure is important for an automobile engine to work properly. During cold winter months, vapor pressure must be high enough for the engine to start easily.
Gasoline evaporates more easily in warm weather, releasing more volatile organic compounds that contribute to health problems and the formation of ground-level ozone and smog. In order to cut down on pollution, the Environmental Protection Agency requires petroleum refiners to reduce the vapor pressure of gasoline used during the summer months.
Source: US Energy Information Administration
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The First Oil Well Was Dug Just Before the Civil War
Edwin Drake dug the first oil well in 1859 and distilled the petroleum to produce kerosene for lighting. Drake had no use for the gasoline or other products, so he discarded them. It wasn’t until 1892 with the invention of the automobile that gasoline was recognized as a valuable fuel. By 1920, there were 9 million vehicles on the road powered by gasoline, and service stations were popping up everywhere.
Source: US Energy Information Administration
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Leaded Gasoline Was Taken Off the U.S. Market
Unleaded gasoline was introduced in the 1970s, when the health problems from lead became apparent. In the United States, leaded gasoline was completely phased out in the 1980s, but it is still being used in some parts of the world.
Source: US Energy Information Administration
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Burning a gallon of gasoline produces about 19 pounds of carbon dioxide.
In 2007, total U.S. carbon dioxide emissions from gasoline combustion were about 1,180 million metric tons, about 20% of total U.S. carbon dioxide emissions.
Laws Such as the Clean Air Act Reduce Environmental Impact… Learn more
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Where Is Oil Produced?
Crude oil is produced in 31 States and U.S. coastal waters. In 2009, 50% of U.S. crude oil production came from five States:
- Texas (21%)
- Alaska (12%)
- California (11%)
- North Dakota (4%)
- Louisiana (3.5%)
In 2009, the U.S. imported about 52% of the crude oil and refined petroleum products that it used. About 100 countries produce crude oil and NGPL; the top five producing countries in 2009, and their share of total world production:
- Russia (12.3%)
- Saudi Arabia (12.0%)
- United States (9.0%)
- Iran (5.2%)
- China (4.7%)
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Where Our Oil Comes From
Most Oil Originates from the Remains of Diatoms
It is a common misconception that crude oil comes from the remains of dinosaurs. Crude oil actually derives primarily from tiny one-celled creatures called diatoms.
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Most of the Petroleum We Use Is Imported
The United States consumed 18.8 million barrels per day of petroleum products during 2009, making us the world’s largest petroleum consumer. The United States was also third in crude oil production at 5.4 million barrels per day. But crude oil alone does not constitute all U.S. petroleum supplies.
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The United States Also Exports Oil
Because the United States is the world’s largest importer, it may seem surprising that it also exports about 2 million barrels a day of oil, almost all of it in the form of refined petroleum products. Due to various logistical, regulatory, and quality considerations, it turns out that exporting some barrels and replacing them with additional imports is the most economic way to meet the market’s needs. For example, refiners in the U.S. Gulf Coast region frequently find that it makes economic sense to export some of their gasoline to Mexico rather than shipping the product to the U.S. East Coast because lower-cost gasoline imports are available from Europe.
Source: US Energy Information Administration
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Offshore Drilling
The first oil well was drilled in 1859, and by 1897 the first offshore oil well was drilled. It was at the end of a wharf, 300 feet out into the Pacific Ocean in Summerland, California. In 1953,…
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How We Use Crude Oil
Over 2/3 of total U.S. petroleum consumption is for transportation, and almost 2/3 of transportation sector petroleum consumption is gasoline. In 2007, gasoline consumption reached a record high of 9.3 million barrels a day (or 391 million gallons per day), before declining to about 9.0 million barrels per day in 2009. About 7% of the gasoline consumed in 2009 was actually ethanol mixed with gasoline.
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How Much Petroleum Does the World Consume?
Worldwide consumption of petroleum was 85.4 million barrels per day in 2009. The three largest consuming countries were:
- United States (18.7 million barrels per day)
- China (8.12 million barrels per day)
- Japan (4.4 million barrels per day)
Source: US Energy Information Administration
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Emissions and Byproducts Are Produced from Burning Petroleum Products
Petroleum products give off the following emissions when they are burned as fuel:
- Carbon dioxide (CO2)
- Carbon monoxide (CO)
- Sulfur dioxide (SO2)
- Nitrogen oxides (NOX) and Volatile Organic Compounds (VOC)
- Particulate matter (PM)
- Lead and various air toxics such as benzene, formaldehyde, acetaldehyde, and 1,3-butadiene may be emitted when some types of petroleum are burned
Nearly all of these byproducts have negative impacts on the environment and human health:
- Carbon dioxide is a greenhouse gas and a source of global warming.1
- SO2 causes acid rain, which is harmful to plants and to animals that live in water, and it worsens or causes respiratory illnesses and heart diseases, particularly in children and the elderly.
- NOX and VOCs contribute to ground-level ozone, which irritates and damages the lungs.
- PM results in hazy conditions in cites and scenic areas, and, along with ozone, contributes to asthma and chronic bronchitis, especially in children and the elderly. Very small, or “fine PM” is also thought to cause emphysema and lung cancer.
- Lead can have severe health impacts, especially for children, and air toxics are known or probable carcinogens.
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Diesel Fuel
Most diesel fuel consumed in the United States is produced in U.S. refineries. In 2008, 4% was imported, mainly from Canada and the Virgin Islands.
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Rudolf Diesel originally designed the diesel engine to use coal dust as fuel, and then experimented with vegetable oil (biodiesel) before the petroleum industry came out with the product now known as diesel fuel.
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Diesel fuel accounted for about 7% of all energy used in the United States in 2009 and 17% of all petroleum products, the second largest petroleum product after gasoline.
Diesel fuel is important to America’s economy, quality of life, and national security. As a transportation fuel, it offers a wide range of performance, efficiency, and safety features. Diesel fuel contains between 18% and 30% more energy per gallon than gasoline. Diesel technology also offers a greater power density than other fuels, so it packs more power per volume….learn more
Source: US Energy Information Administration
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Heating Oil
Heating oil gets dyed red.
The Internal Revenue Service requires heating oil and distillate fuel oils that are not for highway use to be marked with a red dye. The red color makes it clear that the product is tax-exempt and cannot legally be used as highway diesel.
Source: US Energy Information Administration
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Approximately 11 gallons of distillate are produced from each 42-gallon barrel of crude oil. Of these 11 gallons of distillate, less than 2 gallons are heating oil, and the other 9 are diesel fuel. Because diesel fuel requires additional processing to remove sulfur, it is more costly to produce than heating oil.
Source: US Energy Information Administration
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In 2008, about 3.8 billion gallons of heating oil were sold to residential consumers in the Northeast; this is 82% of total residential fuel oil sales….learn more
Source: US Energy Information Administration
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Propane
Liquefied Petroleum Gases Were Discovered in 1912
Liquefied petroleum gases are mixtures of propane, ethane, butane, and other gases that are produced at natural gas processing plants and refineries. Fractionation plants then separate the liquids from each other.
LP-gases were discovered in 1912 when a U.S. scientist, Dr. Walter Snelling, discovered that these gases could be changed into liquids and stored under moderate pressure. The LP-gas industry got its start shortly before World War I when a problem in the natural gas distribution process occurred. A section of the pipeline in one natural gas field ran under a cold stream, and the coldness led to a lot of liquids building up in the pipeline, sometimes to the point of blocking the entire pipeline. Soon, engineers figured out a solution: facilities were built to cool and compress natural gas, and to separate the gases that could be turned into liquids (including propane and butane).
Source: US Energy Information Administration
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About 45% of propane is used by the chemical industry as a raw material for making plastics, nylon, and other materials.
Source: US Energy Information Administration
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What Influences Propane Prices
Although propane is produced from both crude oil refining and natural gas processing, its price is influenced mainly by the cost of crude oil. This relationship is because propane competes mostly with crude oil-based fuels… Learn more
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