Supply of petroleum fuels by Russell Hedrick

Oil production in the United States is a very important industry. The demand for oil for power production as well as transportation is a driving factor for the amount of oil produced. Approximately 50% of all oil production goes towards transportation. In the past few decades oil production has gone through many ups and downs. The fear of a dwindling supply as well as when the oil production will peak has led to many conflicts all over the world. This has been especially true in the area labeled as the Middle East.

Oil production has been increasing greatly over the past few decades. This has been even more prevalent over the last few years. This has been especially true over the past few years in field production in the United States. The annual field production went from 6,783 thousand barrels of oil per day in 2008 to 10,000 thousand barrels of oil per day in 2013. This is very good news from an economic and political stand point but may not be good from an environmental standpoint. This increase in domestic production has led to a decrease in the imports of oil as well as increase in exports. This is a good step in the right direction of becoming a more energy independent country.

In 2008 the United States imported 12,915 thousand of barrels of oil per day. That is almost twice the amount that was produced domestically. Also in 2008 we exported roughly 1,802 thousand of barrels of oil per day. The reason we exported oil, even though we are importing more then we are producing, is because there are other markets around the world where it could be sold at higher prices. The number of imports dramatically changed from 2008 to 2013. In 2013 the United States imported 9,794 thousand barrels of oil per day. That is roughly a 32 percent decrease in total imports per day. Also in 2013 the United States exported roughly 3,594 thousand of barrels of oil per day. This is roughly a 200 percent increase over the number of exports in 2008.

This is a pretty drastic increase in just five years. These increases in field production and exports are due to an increase in oil wells discovered and utilized, although this could have a negative impact on the environment. The more oil wells that are being pump the more potential there is for accidents. This can be seen in the more recent disaster of the BP oil spill in the Gulf of Mexico. This oil spill devastated the region and the effects of it still can be felt today.

The decrease in imports also has a positive environmental impact here in the United States. Imports from the Middle East as well as Mexico are more sour crude, meaning there sulfur content can higher. There sulfur content is roughly 3% more then WTI and LLC sweet crude here in the United States. The higher the sulfur content the more refining and distillation that is required to meet the standards set forth. Less importing of these sour crudes is a good thing for the environment and oil refining here in the United States.

The refining process is crucial for production of gasoline for internal combustion engines. 50 percent of crude oil production goes towards producing gasoline. A steady supply needs to be maintained so there are no surpluses or shortages in the supply chain.

References:
1. http://www.eia.gov/todayinenergy/detail.cfm?id=7110
2. http://www.eia.gov/dnav/pet/pet_sum_snd_d_nus_mbblpd_a_cur.htm

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