The most notable change in the supply of petroleum fuels for the United States is the drastic growth in domestic production of both natural gas and crude oil. The development of production in tight formations, or shale formations (particularly the now well-known Marcellus Shale in the Northeastern United States) combined with the technological advances (hydraulic fracturing and directional drilling), has had far-reaching effects, including decreased both dependency on and imports from other countries. The largest change is from Africa, with imports from that region decreasing by 90% from 2010 to 2014. For comparison, 2008 tight oil production accounted for only 12% of US production, while in 2012 the number rose to 35%. By 2019, we can expect half of US oil production to be from tight oil formations. This increased domestic production has also reduced costs, allowed prices to decrease, and making natural gas a viable and inexpensive alternative to coal in the generation of electricity. While increased use of natural gas in the electricity generation sector is partially environmental policy-driven, much of this growth can be attributed to the mechanics of a price competitive market. This change is beneficial, as when comparing these two sources of energy, combustion of natural gas produces far less carbon dioxide, nitrogen oxides, and sulfur emissions than coal. Natural gas also does not contain harmful particulate matter such as mercury. Furthermore, there have also been advances in other renewable sources of energy including wind and solar power. As these sources become more competitive as costs decrease, we can expect renewable electricity generation to account for 16% of total electricity generation in the United States by 2040.

There have been many positive changes regarding the environmental concerns from combustion of petroleum fuels in internal combustion engines. Though the total miles driven and vehicles used have increased (total vehicle miles traveled increasing by 0.9% each year), it has been more than offset by the increased fuel efficiency of engines. Strict regulations and standards set in place have forced manufacturers to develop better and cleaner vehicles. The EIA website states that light-duty vehicle fuel efficiency has increased by nearly 2% each year, and can be expected to reach 37.2 miles per gallon by 2040 from 21.5 mpg in 2012. Additionally, the entire nation has been slowly and gradually moving towards diesel fuels, biofuels, hybrid, and completely electric cars (most notably Tesla, with massive growth in recent years). Overall, I believe that the United States is moving in the right direction with regards to environmental policy and sustainability. However, this is a global issue and countries such as China and India must also follow suit (though India’s new prime minister has stated that the entire country will be moving towards solar powered homes, hoping that each home is powered by the year 2019).

http://ebf301.dutton.psu.edu/2014/05/25/supply-of-petroleum-fuels-in-the-united-states-and-petroleum-fuels-in-internal-combustion-engines/

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

Michael H Bufalini, May 1^st, 2014

The US Energy Information Association is the most notable source for our countries energy supply and demand. Using the most recent data of supply and disposition the determination of our major fuel sources and import and export business can be analyzed. The Petroleum and Other Liquids data sheet illustrates the break down how the produced crude oil and petroleum products are used for energy consumption per thousand barrels of distillate liquid.

According to the supply data the US produces approximately 11,000 barrels of crude oil and petroleum products per day while importing 9,240 barrels per day. This data table also involves the net production based on these two values while subtracting the production from renewable fuel sources and oxygenate plant production such as Fuel Ethanol. The production value is 75% crude oil production with the other 25% being natural gas liquids and liquefied refinery gases. The crude oil production is expected to have a higher value because it supplies the majority of the vehicles on the road with our combustible fuel, gasoline. Although not a major contribution, natural gas still holds a high percentage because of the growing use of electricity generation, some use for transportation and in home heating.

The finished petroleum use about 50% of the products for the internal combustion engine in vehicles around the country. Another large percent of the finished petroleum products are used for distillate oils. Approximately 4,800 barrels per day are produced of distillate fuel oils for the use of diesel fuel, domestic heating, and in some cases outdoor portable stoves and heaters.

While we are importing 9,240 barrels a day of crude and petroleum we are also exporting about 40% of that amount of the same products. The majority of the US export business is finished petroleum products in the distillate fuel oil category. This is an expected leader of export because outside of the United States, countries use larger transportation methods and more vehicles run on diesel fuel. The largest distillate fuel export is also 15ppm sulfur content or lower which shows a greater reduction of harmful SOx emissions.  Petroleum Coke is also a high exported fuel source of the finished petroleum products. This is most likely used for a source of fuel for other countries power plants.

The refining process follows regulations with how much a certain fuel needs to be refined for permissible amounts of emissions. Certain fuels need more refining to reduce the carbon, sulfur, and nitrogen emissions. The majority of our distillate fuel oil is refined to be under 15ppm of sulfur and our gasoline is blended with additives such as ethanol and other oxygenates to boost octane and meet air quality requirements. With ethanol being in the fuel it ensures higher percentage of carbon dioxide in the emissions rather than carbon monoxide. Ethanol is being produced by hydrolysis from ethylene, which is manufactured in cracker plants from natural gas liquids.

According to the EIA.gov website, the total weekly product of oil supplied was used to create seven major products. ~49% of the 18,855 thousand barrels of crude oil supplied on the 16th of May 2014 was used to make motor gasoline. This is by far the most produced product from crude oil. 8% of the supplied crude oil on this day was used to make jet fuel. 20% was used to make diesel fuel.

Crude oil inherently contains toxic compounds which must be removed in the refining process to meet safe standards when burned. Benzene, sulfur, and organometallics are some of these compounds. Because benzene is a carcinogen, only a limited amount can be found in gasoline or fuel oil.  Heavy crude oils can contain organometallic compounds like nickel and vanadium. These are toxic and corrosive in nature and are removed in the refinery. Environmental standards for sulfur requires gasoline, jet fuel, diesel, and fuel oil to be limited in the refinery.

One of the many claims to fame of the process is the production of high-performance fuels for internal combustion engines. The process also addresses the environmental concerns of the emissions produced in the combustion of theses fuels in such engines. This will be the topic of this blog post.

In reading the most recent data provided by the environmental protection agency for the week ending May, 16 2014, the United States crude oil refinery inputs were approximately 15.9 million barrels per day. The refineries operated at 88.7% capacity, with gasoline production coming out to 9.6 million barrels per day. As for the products supplied, the last four week period saw an average of 18.9 million barrels per day. Of the 18.9 million barrels, gasoline products were responsible for 8.9 million barrels. The number of gasoline products supplied is up 5.3% from last this time last year. This type of an increase is a direct correlation of the importance of oil refining for the gasoline provided for internal combustion engines.

The refining process uses many tools to improve on the environmental emissions produced by the gasoline burned in an internal combustion engine. The government has set strict and imperative environmental regulations on the oil these processes produce which causes the importance of improving these stages of utmost importance to oil companies.

During the refining process, the petroleum undergoes many stages to improve the emission contents of such liquid. The separation process separates the physical constituents within the oil, removing wax, solids and other impurities. While the conversion process is more for the purpose of adjusting the chemical composition, the finishing process plays a large role in the environmental improvement as well. It is here that hydro treating takes place with the intent to remove the main culprits of pollution from emissions, and that is the sulfur and nitrogen components of the oil. As we know, these elements are what create NOx and SOx, both of which are strictly controlled in government regulations.

These processes described above will become more and more imperative to be improved as the demand for high performance fuels increases along with the number of cars that are on the road. As the weather gets warmer in these coming months, we can also expect to see a rise in cars on the roads. This increase in travel is only adding to the need that is always prevalent in the oil refining industry. As the US looks to become an exporter of oil rather than its norm of being an importer the need to produce a quality oil becomes even more important with competing markets.

References:

1. Lesson 1: Introduction to Petroleum Refining and Crude Oil Composition: https://cms.psu.edu/section/content/default.asp?WCI=pgDisplay&WCU=CRSCNT&ENTRY_ID=F20C6357261A4AE2A750C141B721E8C1
2. This Week in Petrolium: http://www.eia.gov/oog/info/twip/twip.asp
3. http://www.eia.gov/oog/info/twip/twip_gasoline.html
4. Weekly Petroleum Status Report Highlights: http://www.eia.gov/petroleum/supply/weekly/

In finding the required data to complete this assignment, the U.S. Energy Information Administration website was used. From the homepage I used the Sources and Uses dropdown menu to find the “Weekly Petroleum Status Report” (on the right hand side of the dropdown menu) which gave data up to the middle of May. This data was logged for various topics such as weekly U.S. field production, imports, exports, U.S. refiner and blender net production, and the product supplied for a small number of refinery products.

When beginning to look at the numbers, it can be seen that there is a total input of crude oil to U.S. refineries of 15,949 thousand barrels per day (KBPD), the majority of which is actually produced domestically (8,434 KBPD versus 6,469 KBPD imported)¹. This is somewhat surprising at first; however if the table is followed backward we can see that there has been a 14% increase in U.S. production and a 5.3% drop in imports since last year¹. What can be drawn from this is that America, while still being heavily reliant on oil, is currently becoming slightly less dependent on foreign oil. With this being said, the U.S. is still importing over 4,500 KBPD from Canada, Saudi Arabia, and Mexico alone². On top of the increase in domestic fuel production there has also been an increase in crude oil exported from the U.S. As of May 16^th America exported 71 KBPD which is up from 48 KBPD last year at this time¹.

Taking a step backward for a moment, it might beneficial to look in to not just the overall numbers but also the values of specific refinery products such as gasoline, kerosene, and distillate fuel oils. These three products are shown to be the largest components of refinery production currently because they are used as fuels in transportation methods³. When I was investigating these numbers I realized these were the stocks or supplies of each type of fuel in millions of barrels. So as of mid May the U.S. had a stock of 213 million barrels of gasoline, 39 million barrels of kerosene, and 116 million barrels of distillate fuel oil³. Although this seems like a large amount of each, to put things in perspective, America’s Strategic Petroleum Reserve can hold up to 727 million barrels of oil so these values are not all that large⁴. Once again looking at the fluctuations of these stocks it can be seen that gasoline and distillate fuel oil have actually decreased since this time last year while kerosene increased. There are several factors that could lead to these decreases however I believe it could be partly due to Americans driving less as gasoline prices rise⁵. With fewer miles being driven there may be less need to keep a large amounts of gasoline or distillate fuel oil stored up in case of emergency.

In the refining of crude oil there are several processes done to improve the quality of the oil products so that they meet environmental specifications set by the state and federal government. Refineries must reduce or remove the amount of nitrogen, sulfur, and organometallic compounds in the crude oil to acceptable levels. For instance, nitrogen and sulfur content can be reduced through the use of hydrotreating or hydrodesulfurization which cuts down on NO_x and SO_x emissions during combustion. Organometallics include elements like nickel, vanadium, and copper must also be taken out due to their highly corrosive and toxic natures.

References:

1. “Weekly Petroleum Status Report.” U.S. Energy Information Administration . N.p., n.d. Web. 25 May 2014. <http://www.eia.gov/petroleum/supply/weekly/pdf/table1.pdf>.
2. “Weekly Petroleum Status Report.” U.S. Energy Information Administration. N.p., n.d. Web. 25 May 2014. <http://www.eia.gov/petroleum/supply/weekly/pdf/table8.pdf>.
3. “Weekly Petroleum Status Report.” U.S. Energy Information Administration . N.p., n.d. Web. 25 May 2014. <http://www.eia.gov/petroleum/supply/weekly/pdf/table4.pdf>.
4. “Strategic Petroleum Reserve.” ENERGY.GOV. N.p., n.d. Web. 25 May 2014. <http://energy.gov/fe/services/petroleum-reserves/strategic-petroleum-reservev>.
5. “U.S. Energy Information Administration – EIA – Independent Statistics and Analysis.” Table 5.24 Retail Motor Gasoline and On-Highway Diesel Fuel Prices, 1949-2011 (Dollars per Gallon). N.p., n.d. Web. 25 May 2014. <http://www.eia.gov/totalenergy/data/annual/showtext.cfm?t=ptb0524>.