Oil: Crude and Petroleum Products - Energy Explained, Your Guide To Understanding Energy

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from http://www.eia.doe.gov/kids/energyexplained/sources/non-renewable/oil.html, Last revised: May 2008

How Was Oil Formed?

Oil was formed from the remains of animals and plants (diatoms) that lived millions of years ago in a marine (water) environment before the dinosaurs. Over millions of years, the remains of these animals and plants were covered by layers of sand and silt. Heat and pressure from these layers helped the remains turn into what we today call crude oil. The word "petroleum" means "rock oil" or "oil from the earth."

Three images, about Petroleum & Natural Gas Formation. Adapted from the National Energy Education Development Project.

The first image is about the Ocean 300 to 400 million years ago. Tiny sea plants and animals died and were buried on the ocean floor. Over time, they were covered by layers of sand and silt.

The second image is about the Ocean 50 to 100 million years ago. Over millions of years, the remains were buried deeper and deeper. The enormous heat and pressure turned them into oil and gas.

The third image is about Oil & Gas Deposits. Today, we drill down through layers of sand, silt, and rock to reach the rock formations that contain oil and gas deposits.

Products Made from a Barrel of Crude Oil

Did You Know Crude Oil Can Be Sweet or Sour?

Crude oil is called "sweet" when it contains only a small amount of sulfur and "sour" if it contains a lot of sulfur. Crude oil is also classified by the weight of its molecules. "Light" crude oil flows freely like water, while "heavy" crude oil is thick like tar.

After crude oil is removed from the ground, it is sent to a refinery by pipeline, ship, or barge. At a refinery, different parts of the crude oil are separated into useable petroleum products. Crude oil is measured in barrels (abbreviated "bbls").

A 42-U.S. gallon barrel of crude oil provides slightly more than 44 gallons of petroleum products. This gain from processing the crude oil is similar to what happens to popcorn, which gets bigger after it is popped.

This graphic illustration of a barrel shows the percentage of products that are made from 44 gallons of crude oil for 2008: 18.56% gasoline; 1.72% liquefied petroleum gas (LPG); 1.68% heavy fuel oil (residual); 7.01% other products; 4.07% jet fuel; 1.38% other distillates (heating oil); and 10.31% diesel fuel.

Click to enlarge »

Note: A 42-U.S. gallon barrel of crude oil yields between 44 and 45 gallons of petroleum products.

Last Updated: July 14, 2009

from http://www.eia.doe.gov/basics/quickoil.html, Last revised: Feb 2009 / Next update July 2009

Petroleum Statistics

(2008 data except where noted)

Supply
U.S. Petroleum Production (crude oil, NGPL, and other oils)	6,734,000 barrels/day
U.S. Crude Oil Production	4,950,000 barrels/day
U.S. Crude Oil Imports	9,783,000 barrels/day
U.S. Petroleum Product Imports	3,132,000 barrels/day
U.S. Net Petroleum Imports	11,114,000 barrels/day
Dependence on Net Petroleum Imports	57%
Top U.S. Crude Oil Supplier	Canada — 1,956,000 barrels/day
Top U.S. Total Petroleum Supplier	Canada — 2,493,000 barrels/day
U.S. Crude Oil Imports from OPEC	5,954,000 barrels/day
U.S. Petroleum Product Imports from OPEC	540,000 barrels/day
State Ranking of Crude Oil Production	Texas — 1,087,000 barrels/day
Top U.S. Producing Companies, Appendix A, p. 8	BP — 654,000 barrels/day (2007)
Top U.S. Oil Fields by Production, Appendix B, Table B1	Prudhoe Bay, AK (2007)
Top Oil Producing Countries & Exporters	#1 — Saudi Arabia (10,782,000 barrels/day)
Top Oil Consuming Countries & Importers	#1 — United States (19,498,000 barrels/day)
Consumption and Disposition
U.S. Petroleum Consumption	19,498,000 barrels/day
U.S. Motor Gasoline Consumption	8,989,000 barrels/day (378 million gallons/day)
Share of U.S. Oil Consumption for Transportation	71%
U.S. Total Petroleum Exports	1,802,000 barrels/day
Prices
Crude Oil Domestic First Price (wellhead price)	$94.04/barrel
Motor Gasoline Retail Prices (U.S. City Average)	$3.32/gallon
Regular Grade Motor Gasoline Retail Prices (U.S. City Average)	$3.27/gallon
Premium Motor Gasoline Retail Prices (U.S. City Average)	$3.52/gallon
Federal Motor Gasoline Tax	18.4 cents/gallon
U.S. Average Home Heating Oil Price	$3.22/gallon (excluding taxes)
Refining and Reserves
Number of U.S. Operable Petroleum Refineries	150
U.S. Refiners Ranked Capacity (1/1/2009)	#1 — Baytown, Texas (ExxonMobil) 572,500 barrels/day
Top U.S. Petroleum Refining States	#1 — Texas 4,689,179 barrels/day
U.S. Proved Reserves of Crude Oil as of December 31, 2007	21,317 million barrels
U.S. Strategic Petroleum Reserve	702 million barrels (2008)
International
Total World Oil Production	85,472,000 barrels/day
Total World Petroleum Consumption	85,534,000 barrels/day
Retail Gasoline Price in Selected Countries (2008) (regular unleaded, $/gallon)
Germany Japan Australia Canada United States China Mexico	$7.75 $5.74 $4.45 $4.08 $3.27 $3.11 $2.45
Measures
Gallons of Oil per Barrel	42
Barrels of Oil per Metric Ton (U.S.)	7.33

Last Updated: July 14, 2009

from http://www.eia.doe.gov/kids/energyexplained/sources/non-renewable/oil.html, Last revised: May 2008

How Was Oil Formed?

Products Made from a Barrel of Crude Oil

Did You Know Crude Oil Can Be Sweet or Sour?

Also on Energy Explained

Learn More

from http://www.eia.doe.gov/basics/quickoil.html, Last revised: Feb 2009 / Next update July 2009

Petroleum Statistics

Supply

Consumption and Disposition

Prices

Refining and Reserves

International

Measures

Also on Energy Explained

Learn More