Petroleum: More Than Fuel
At AXON we thought it important to talk about things that are of interest to our colleagues in the industry, and to those outside of our industry. With that thought in mind we decided to add a Blog to our new website.
Since we realize there is a good deal of controversy about the oil and gas industry versus “clean” energy, we thought that our first Blog publishing should be about some simple facts above and beyond the traditional uses of petroleum products, such as gasoline and diesel fuel.
Many people may not realize how important our industry is to the world economy, even if other sources of energy were able to completely replace petroleum products that are used as fuel for our cars, trucks, homes, and businesses. So, we’ve put together a list of facts to ponder...
According to the American Petroleum Institute (API), America’s oil and natural gas industry supports 9.2 million jobs throughout the economy and 7.5 percent of GDP.
- From 2004-2007, the oil and natural gas industry was responsible for creating nearly 2 million additional domestic jobs.
- In 2009, 41 percent of total U.S. energy consumption was used in residential and commercial buildings, 30 percent in industrial activities, and 29 percent in transportation.
Contrary to what many people may believe, America’s oil companies aren’t owned by a small group of wealthy investors.
- Only 1.5 percent of industry shares are owned by corporate management. The rest is owned by tens of millions of Americans.
- 55 million U.S. households with mutual funds and 45 million personal retirement accounts are likely to invest in oil and natural gas stocks.
- Since 2000 the industry has invested $1.7 trillion in U.S. capital projects to advance all forms of energy, including alternatives, and reduce the industry’s environmental impact.
- Between 2000 and 2008, the industry invested more than $58 billion in new low and zero carbon emissions technologies.
The Department of Energy reports that a 42-U.S. gallon barrel of crude oil provides slightly more than 44 gallons of petroleum products, which is more than a 6 percent gain. You can think of processing crude oil as being similar to what happens to popcorn when it's popped, it produces more useable volume.
- One barrel of crude oil produces about 19 gallons of gasoline, and 10 gallons of diesel.
- Other petroleum products are produced from that same barrel of oil, such as propane used to heat homes.
The byproducts of processed petroleum are used to make other products used in our everyday lives, such as:
- Heart valves
- Ammonia
- Rubber Cement
- Anesthetics
- Rubbing Alcohol
- Antihistamines
- Ink
- Artificial limbs
- Crayons
- Antiseptics
- Dishwashing liquids
- Aspirin
- Deodorant
- Shampoo
- Cosmetics
- Shaving Cream
- Eyeglasses
- Toothpaste
- CDs and DVDs
- Trash Bags
- Tires
- Cell phones
There are over 6,000 items that are manufactured using petroleum based products. Nearly every product used in our everyday lives is made from oil. These products are made by machines and systems that are dependent on petroleum products to operate, which need to be transported to the various factories making these products. The methods of transportation are usually by means of gasoline or diesel fuel powered methods.
While solar, wind, and other sources of alternative energy are important to meeting the energy and environmental demands of today and tomorrow, we must ask the question of the greater impact to society and our economy if drilling for oil were to cease.
How would the thousands of other petroleum based products be made, and how long would it take to develop these alternatives? How many jobs, in America and around the world, in these numerous other industries would be lost?
