Oil is a natural resource that, when used for fuel, heats homes and powers cars. Many people in the United States depend on overseas imports for this essential commodity. For decades, Americans have counted on stable prices for their oil supply. However, in the last few years, there has been a large increase in oil prices due to an unprecedented shale gas boom in the United States.
Petroleum, also known as crude oil, is naturally occurring organic matter exposed to heat and pressure over long periods. It accounts for 50% of the world’s energy supply, increasing demand for more fuel due to population growth.
Price: The price of crude oil is one of the most complicated things. Many human factors contribute to its cost and wage, including the state of world politics and economics and the stormy weather patterns and other natural occurrences. The price for a barrel of crude oil has been on the rise, and with the economy, in flux, it’s not likely to drop anytime soon. Oil is an important commodity, and it affects our country and world in many ways. A barrel of crude oil, or 42 gallons of oil, is just under $50- it has been decreasing steadily for the past six years. This is because of higher production and more efficient exploration. However, prices can vary dramatically based on the source country. For example, a barrel of crude oil in Saudi Arabia can cost around $80 per barrel, while a barrel in Angola can cost around $70 per barrel.
Imports: Many people are not aware that the United States is the third-largest importer of crude oil in the world. Imported crude oil accounts for about 45% of what the United States consumes annually. The most common imported crude oils come from Mexico, Saudi Arabia, and Canada. Crude oil imports in the U.S. have risen rapidly due to increased production costs, lower domestic production rates, and a greater reliance on foreign sources of energy.
Import Sources: The US is the top importer of crude oil, importing an average of 10.2 million barrels per day in 2017. This is down from 11.3 million barrels per day in 2016. The crude imports have been steadily declining since 2006 when they peaked at 13.6 million barrels per day. But did you know that more than 80% of the world’s crude oil is imported? That means that without these imports, we would be left with just 20% of the supply needed to meet demand. So who are these mysterious foreign countries risking their stability by selling us this resource?
Four big oil players: When we think of the oil we consume, we often think of how it is drilled and refined. While this is true, four companies largely control crude oil worldwide: Exxon Mobil, Royal Dutch Shell, BP, and Chevron. These companies were formed during the early 1900s. Each has a global presence with operations in all continents; what separates these players from others is their corporation-based strategies and large-scale investments to keep up with the changes in production and demand. Oil is an abundant resource that contributes to our economy and the environment.
Geography of Oil: The idea of energy security has concerned energy producers and their consumers for decades. Global oil production is declining, making it more difficult to meet the increasing demand. Several countries are vying to get their hands on the last oil to become energy independent. Countries like the USA, Russia, Canada, Iran, Iraq, Saudi Arabia, and Venezuela produce high amounts of crude oil.
Oil is a major contributor to the global economy, providing many different important products for our everyday lives. One of the most unexpected revelations about cfdsociety software is its geographic distribution. As Americans, it may be hard to believe that less than 25% of the world’s crude oil reserves are in North America, and the rest is primarily in the Middle East and Southeast Asia, with Russia coming third.
Dependency: Oil is a white fossil fuel that we can convert into gasoline or diesel fuel in a refinery. In recent years, the debate has been raging about U.S. dependence on oil and what this means for our energy security. In particular, the impact of this reliance on imported oil is a hot-button issue with many Americans who want to reduce the need to import from foreign sources. With that in mind, it may surprise you that there are more than 700 billion barrels of oil under U.S. soil available for extraction – enough to meet the current requirement of the U.S.
Conclusion:
Crude oil is a finite resource. The world’s supply of crude oil is now declining, making it more difficult and expensive to extract. Its supply and price continue to fluctuate as oil-producing countries and companies compete for market share and explore new, untapped sources of oil. The article concludes that we need to be aware that we are consuming crude oil faster than we can produce it.