AND THE ROLE OF NATURAL GAS IN ENERGY TO MEET THE NATIONS NEEDS

EXACTLY HOW DEPENDANT IS THE UNITED STATES ON

FOREIGN OIL?

April Abate-AdamsApplied GIS 1820

When we think about our dependency on foreign oil, many of us have this image in our minds…….

الخاص المال عطنياألمريكي

Translation: Give me your American Money!!

But how much really has changed since 9/11 and what are the factors that have contributed to these changes?

Surprisingly, the notion that we are dependent upon the Middle East for all of our imported oil is a myth.

Which nation is currently the top supplier for petroleum to the United States?

You may be surprised to learn……

Major changes are currently in motion with the supply of natural gas production in the United States. New technologies for the extraction of natural gas are coming on line and opening up huge reserves from the domestic supply.

These changes are creating many new jobs in this industry and have contributed to substantially lower electricity bills in the residential heating market.

But these new technological advances have not come without other consequences. Coal, a major provider of electricity in the United States has been widely affected and outpaced by the natural gas market. Some see the future of natural gas and a way to finally render the coal industry obsolete and put it to rest for good…

Top World Oil Consumers 2011In thousands barrels per day

Country Consumption

#1 UNITED STATES 18,949#2 China 8,924#3 Japan4,464#4 India 3,426

#5 Saudi Arabia 2,986 

Who uses the most?

U.S. Fuel Production by Type

The United States relied on net imports (imports minus exports) for about 45% of the petroleum (crude oil and petroleum products) that we consumed in 2011. Just over half of these imports came from the Western Hemisphere. Even so, our dependence on foreign petroleum has declined since peaking in 2005.

About 22% of our imports of crude oil and

petroleum products came from the Persian Gulf countries of Bahrain, Iraq, Kuwait, Qatar, Saudi Arabia, and United Arab Emirates.

Our largest sources of net crude oil and petroleum product imports were Canada and Saudi Arabia.

Map data showing U.S. import trends1995

Map data showing U.S. import trends2000

Map data showing U.S. import trends2005

Map data showing U.S. import trends2010

Natural gas is a versatile fossil fuel that we use for heating, cooking, electricity production, and transportation.

It currently makes up nearly

one-quarter of the U.S. energy mix and continues to be a readily available domestic resource as a result of recent discoveries and advances in extraction technology.

Natural Gas Production

U.S. natural gas production and consumption were nearly in balance through 1986. After that, consumption began to outpace production, and imports of natural gas rose to meet U.S. demand for the fuel.

U.S. production increased from 2006 through 2011, when it reached the highest recorded annual total since 1973.

The increases in production were the result of more efficient, cost-effective drilling techniques, notably in the production of natural gas from shale formations.

Shale gas refers to natural gas that is trapped within shale formations. Shales are fine-grained sedimentary rocks that can be rich sources of petroleum and natural gas.

What is shale gas and why is it important?

Recently a technology known as “hydraulic fracturing” or “fracing” has come into widespread use.

Hydraulic fracturing is a technique in which water, chemicals, and sand are pumped into the well to unlock the hydrocarbons trapped in shale formations by opening cracks (fractures) in the rock and allowing natural gas to flow from the shale into the well.

FRACKING

PROS AND CONS OF FRACKING

• Although natural gas is a hydrocarbon fossil fuel, the global warming emissions from its combustion are much lower than those from coal or oil. Natural gas produces 43 percent fewer carbon emissions than coal for each unit of energy delivered, and 30 percent fewer emissions than oil.

• Fracing technology has opened up a vast supply of natural gas affecting the market and bringing a cheaper form of electricity to the consumer.

Cons•Uses large amounts of water. Not typically a problem in the East, but here out West - a major issue.

•Methane, the main component of natural gas, is itself a strong warming agent. Methane has been known to seep out of hydrofractured wells and migrate into a water supply. Usually this is due to a well not being properly sealed during its construction and completion. Process requires regulation by the states.

•Wastewater - fracking produces large amounts of wastewater that may contain dissolved chemicals and other contaminants requiring treatment before final disposal/or reuse.

•Earthquakes - Yes, fracking has been known to cause them. Injection of wastewater into deep wells for final disposal can cause earthquakes large enough to be felt and may cause damage.

U.S. dependence on imported oil has declined since peaking in 2005. This trend is the result of a variety of factors:

The economic downturn after the financial crisis of 2008 Improvements in efficiencyChanges in consumer behavior Increased use of domestic biofuels (ethanol and biodiesel)Strong gains in domestic crude oil and natural gas

production Tighter fuel efficiency standardsWorldwide Higher Oil PricesRenewable fuel mandates leads to more domestic production

of petroleum and biofuels

What are the reasons for the decline in foreign imports?

And Finally, the Question that Effects You Directly…….

WHY ARE GAS PRICES SO HIGH???

Oil is traded on the world market and priced per barrel

World demand and geopolitical trends influence prices in the U.S. driving the prices up or down. In particular, the demand from

China and India heavily influence prices due to increased consumption over the past decade.

Unlike a lot of countries, the United States does not have a "Nationalized Oil Company" which is a government -run oil company. If we did, the nation would have more control over the price of oil.

Our suppliers come from publicly-traded corporations such as ExxonMobil, BP, and Chevron who mainly answer to shareholders, not governments.

REFERENCES

•Oil and Energy News: http://oilprice.com

•Energy Information Administration: www.eia.gov

•FracFocus Chemical Data Registry: www.fracfocus.org