petroleum1635-2000 michael roberts sustainable air quality february 11, 2002
TRANSCRIPT
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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 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.
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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.
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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
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.
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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
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.
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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 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.
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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 isn’t as big as originally thought.