petroleum1635-2000 michael roberts sustainable air quality february 11, 2002
TRANSCRIPT
Petroleum1635-2000
Michael Roberts
Sustainable Air Quality
February 11, 2002
Background• Humans have used oil since 3000 BC.• Mesopotamians used “rock oil”, Chinese refined
crude oil, Arab & Persian chemists create “Greek Fire” or today’s napalm.
• The modern petroleum era is credited to “Colonel” Edwin Drake. Started in August of 1859.
• USA produced nearly all of it’s oil it consumed till the 1950’s.
• 1994, US imported more oil than it produced.• Ever since 1972, US produced oil has gradually
fallen.
Petroleum Consumption Overview• Before 1950, US produced
all of it’s 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.
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.
Motor Vehicle Consumption
0
2
4
6
8
10
1949
1953
1957
1961
1965
1969
1973
1977
1981
1985
1989
1993
1997
Year
M B
/day
• Accounts for 60% of the Trans sector consumption.• Virtually a linear increase since 1949.
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?
Operating Oil Wells
0
200
400
600
800
1949
1953
1957
1961
1965
1969
1973
1977
1981
1985
1989
1993
1997
Years
# of
Oil
Wel
ls
• Oil wells have been reducing since 1985.• Most oil wells operating was 647 wells in 1985.
Refinery Acquisition Costs• Spiked at about $58 per
barrel of oil in 1982.• Has been rising sharply
for the last 3 years.
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.
Summary
• US production isn’t 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.
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 isn’t as big as originally thought.