1. Petroleum1635-2000 Michael Roberts Sustainable Air Quality February 11, 2002

2. 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.

3. 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.

4. 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.

5. Motor Vehicle Consumption Accounts for 60% of the Trans sector consumption. Virtually a linear increase since 1949.

6. 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?

7. Operating Oil Wells Oil wells have been reducing since 1985. Most oil wells operating was 647 wells in 1985.

8. Refinery Acquisition Costs Spiked at about $58 per barrel of oil in 1982. Has been rising sharply for the last 3 years.

9. 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.

10. 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.

11. 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.