Petroleum1635-2000

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Petroleum1635-2000

• Michael Roberts
• Sustainable Air Quality
• February 11, 2002

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Background

• Humans have used oil since 3000 BC.
• Mesopotamians used rock oil, Chinese refined
  crude oil, Arab Persian chemists create Greek
  Fire or todays napalm.
• The modern petroleum era is credited to Colonel
  Edwin Drake. Started in August of 1859.
• USA produced nearly all of its oil it consumed
  till the 1950s.
• 1994, US imported more oil than it produced.
• Ever since 1972, US produced oil has gradually
  fallen.

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Petroleum Consumption Overview

• Before 1950, US produced all of its crude oil.
• US oil production peaked in 1972 at 19 M
  Barrel/day.
• About 1994, Imported oil equaled produced oil in
  US.
• In 1978, Alaskan oil was introduced to US market.
• Alaskan oil peaked its production in 1988 at 2 M
  barrels/day.

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Petroleum Consumption by Sector

• Year 2000 average daily consumption is 20 M
  B/day.
• About 66 consumption is due to Transportation
  sector.
• Transportation sector has constantly increased
  since 1950.
• Prices of crude oil dictate consumption by
  transportation sector.

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Motor Vehicle Consumption

• Accounts for 60 of the Trans sector consumption.
• Virtually a linear increase since 1949.

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US Crude Oil Production

• Oil production peaked in 1972 at 19 M B/day.
• Since 1972, Oil production has been steadily
  declining.
• In 2000, Oil production is approx 11 M B/day.
• Oil wells drying up?

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Operating Oil Wells

• Oil wells have been reducing since 1985.
• Most oil wells operating was 647 wells in 1985.

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Refinery Acquisition Costs

• Spiked at about 58 per barrel of oil in 1982.
• Has been rising sharply for the last 3 years.

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Federal Oil Reserve

• Created in 1977.
• Feds wanted a way to prevent disruption in the
  distribution of oil to US.
• Reserve is dependant on consumption imports.
• Reserve has increased since it was created.
• Currently it holds 512 M Barrels of crude oil.

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Summary

• US production isnt able to keep up with its
  consumption rate.
• The US Oil Reserve was created in 1977 and
  currently has 512 million barrels of oil.
• Transportation sector consumes about 66 of all
  crude oil used in the US.
• Oil well productivity has been decreasing
  linearly since 1972. Currently at 11 million
  barrels per day.

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What I learned...

• US oil production has been declining since 1972.
• US relies on about 12 million barrels of imported
  oil per day
• Transportation sector is responsible for 40 of
  oil consumed by the US.
• Oil Reserve isnt as big as originally thought.