Oil and Natural Gas

Oil and natural gas touch our daily lives, providing fuel that runs our vehicles, cooks our food, heats our homes, and generates electricity. Petroleum is also a component of plastics, medicines, food items, and countless other products from soccer balls to aspirin. Without oil and natural gas, your life would be significantly different than it is today.

Are we running out of oil? The answer is no—oil is expected to be the dominant energy source for decades to come. The challenge of our times is how to meet rising world energy consumption that is projected to increase 71% by 2030. [Source: International Energy Report, Outlook 2007, US Energy Information Administration]

For Transportation

Today’s world depends on transportation, and oil is essential to meet this demand. Developed economies, such as those in North America, currently use more oil than developing economies. They use more because they depend on private vehicles (cars, motorcycles, and light trucks) to travel significant distances. However, economic growth, increasing industrial activity, and more transportation use are greatly expanding the demand for oil in developing countries.

Transportation accounts for approximately two-thirds of all oil utilized in the United States. Since the 1920s, when millions of Americans owned mass-produced automobiles, gasoline has been the most common oil product used in transportation. Gasoline and diesel together comprise 86% of all transportation energy in the U.S. Most cars, motorcycles, and light trucks require gasoline; many heavier trucks, buses, and trains use diesel.

Demand for oil

Total demand for oil by 2030 is expected to be 50% higher than today. Forecasts indicate that much of this oil demand will be for transportation use, where there are few alternatives to petroleum. Many alternative solutions , such as ethanol and biodiesel, produced from energy crops are expected to help meet this large demand. There is also a push to develop vehicles that run on alternative fuels such as electricity, natural gas, and propane. Hybrid-electric vehicles, for example, combine the benefits of gasoline engines with electric motors, reducing the amount of fuel required.

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