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How was oil formed?

Oil was formed from the remains of animals and plants (diatoms) that lived millions of years ago in a marine (water) environment before the dinosaurs. Over millions of years, the remains of these animals and plants were covered by layers of sand and silt. Heat and pressure from these layers helped the remains turn into what we today call crude oil. The word petroleum means rock oil or oil from the earth.

Three images,  about Petroleum & Natural Gas Formation. Adapted from the National Energy Education Development Project.
              The first image is about the Ocean 300 to 400 million years ago. Tiny sea plants and animals died and were buried on the ocean floor. Over time, they were covered by layers of sand and silt.
              The second image is about the Ocean 50 to 100 million years ago. Over millions of years, the remains were buried deeper and deeper. The enormous heat and pressure turned them into oil and gas.
              The third image is about Oil & Gas Deposits. Today, we drill down through layers of sand, silt, and rock to reach the rock formations that contain oil and gas deposits.

Products made from a barrel of crude oil

Did you know crude oil can be sweet or sour?

Crude oil is called sweet when it contains only a small amount of sulfur and sour if it contains a lot of sulfur. Crude oil is also classified by the weight of its molecules. Light crude oil flows freely like water, while heavy crude oil is thick like tar.

After crude oil is removed from the ground, it is sent to a refinery by pipeline, ship, barge, or rail. At a refinery, different parts of the crude oil are separated into useable petroleum products. Crude oil is measured in barrels.

A 42 U.S. gallon barrel of crude oil yields about 45 gallons of petroleum products. This gain from processing the crude oil is similar to what happens to popcorn, which gets bigger after it is popped.

This graphic illustration of a barrel 
            shows the percentage of products that are made from 44 gallons of crude oil for 2011: 19% gasoline; 2% liquefied 
            petroleum gas (LPG); 1% heavy fuel oil (residual); 7% other products; 4% jet fuel; 1% other distillates 
            (heating oil); and 11% diesel fuel.
Click to enlarge »

More data »

Source: U.S. Energy Information Administration,
Petroleum Navigator, Refinery Yield, 2013 preliminary data

Note: A 42 U.S. gallon barrel of crude oil yields about 45 gallons of petroleum products.

Last updated: June 19, 2014

Petroleum Statistics

(2012 data except where noted)

Supply

U.S. Petroleum Production (crude oil, NGPL, and other oils) 8,897,000 barrels/day
U.S. Crude Oil Production
6,498,000 barrels/day
U.S. Crude Oil Imports
8,527,000 barrels/day
U.S. Petroleum Product Imports
2,071,000 barrels/day
U.S. Net Petroleum Imports
7,393,000 barrels/day
Dependence on Net Petroleum Imports
40%
Top U.S. Crude Oil Supplier
Canada — 2,425,000 barrels/day
Top U.S. Total Petroleum Supplier
Canada — 2,946,000 barrels/day
U.S. Crude Oil Imports from OPEC
4,031,000 barrels/day
U.S. Petroleum Product Imports from OPEC
240,000 barrels/day
Top Crude Oil Producing State Texas — 1,997,000 barrels/day
Top U.S. Producing Company
BP PLC — 237 million barrels (2009)
Top U.S. Oil Field by Production (Table 1)
Prudhoe Bay, AK (2009)
Top Oil Producing Country
#1 — Saudi Arabia (11,726,000 barrels/day)
Top Oil Consuming Country
#1 — United States (18,490,000 barrels/day)

Consumption and Disposition

U.S. Petroleum Consumption
18,490,000 barrels/day
U.S. Motor Gasoline Consumption
8,682,000 barrels/day (365 million gallons/day)
Share of U.S. Oil Consumption for Transportation (Tables 3.3a and 3.7c)
70%
U.S. Total Petroleum Exports
3,205,000 barrels/day

Prices

Crude Oil Domestic First Price (wellhead price)
$94.52/barrel
Motor Gasoline Retail Price (all grades)
$3.68/gallon
Regular Grade Motor Gasoline Retail Price  
$3.62/gallon
Premium Motor Gasoline Retail Price  
$3.89/gallon
Federal Motor Gasoline Tax
18.4 cents/gallon
U.S. Average Home Heating Oil Price
$3.79/gallon

Refining and Reserves

Number of U.S. Operable Petroleum Refineries (as of Jan. 1, 2013)
143
U.S. Refineries Ranked Capacity (as of Jan. 1, 2013) #1 — Port Arthur, Texas
(Motiva Enterprises LLC) 600,250 barrels/day
Top U.S. Petroleum Refining States (as of Jan. 1, 2013) #1 — Texas 5,128,000 barrels/day
U.S. Proved Reserves of Crude Oil (as of Dec. 31, 2011)
26,544 million barrels
U.S. Strategic Petroleum Reserve
695 million barrels

International

Total Oil Supply
89,348,100 barrels/day
Total World Petroleum Consumption
85,275,100 barrels/day

Measures

Gallons of Oil per Barrel
42
Barrels of Oil per Metric Ton (U.S.)
7.33

Last updated: November 5, 2013