February 28, 2024


General For All

How are oil and gas used in the United States?

What Percentage of the Global Economy Is the Oil and Gas Drilling Sector?

Oil and gas are important commodities for producers as well as consumers. Oil and gas companies in the USA are responsible for producing oil and gas products such as petroleum and energy in the form of fuels and chemicals used in industries across all sectors. From gasoline used to drive cars, to gas required for cooking, the oil and gas industry is one of the largest in the world. Gas can be sold in retail outlets as an energy source. To find an outlet that supports the sale of gas products, you can review online shops.

To understand their uses and consumption, it is important to know what products are made from oil and gas and how they are used in the various sectors.

What are the sectors that use oil and gas products?
1) Electric power sector:
The electric power sectors use both oil and gas products to generate electricity in the form of fuels and biofuels. This sector accounts for 1% of total oil consumption, whereas gas products account for 40% of the total gas consumption. Only a small amount of crude oil is used in its natural form, with the majority being refined into petroleum products.

2) Industrial sector:
The industrial sector uses gas and oil products as raw materials, also known as feedstock, to produce chemicals, fertilizers and plant fuel from gas products, and to produce plastics and solvents from oil products in the form of petroleum. The industrial sector accounts for 33% of the total consumption of gas, and 28% in the total consumption of oil.

3) Transportation sector:
The transportation sector uses gas and oil products in the form of fuels. Crude oil is refined into gasoline, which is used as vehicle fuel, as well as distillate and biofuels, which are used in trucks, buses, trains and even as jet fuel for use in jet airplanes and some helicopters. The transportation sector accounts for 37% of total gas consumption, and a whopping 66% of total oil consumption.

4) Residential sector:
Gas and oil are used in the residential sector as fuel oils in boilers and furnaces to heat homes, and as gas products used to heat water for cooking, drying clothes, and for space heating. The residential sector accounts for 15% of total gas consumption, and 3% total oil consumption.

5) Commercial sector:
The commercial sector makes use of gas and oil products in the form of energy sources, as well as to heat buildings and water for refrigeration and cooling purposes. They are also used to cook and to provide outdoor lighting in commercial companies such as restaurants. The commercial sector accounts for 10% of the total gas consumption in the United States, and 2% of the total oil consumption.

America is the number one producer of oil and gas in the world. With a production amount of 14.8 million barrels of crude oil and 91.4 billion cubic feet of gas being produced daily, the revenue created is large. Taxes paid by oil and gas companies in the form of royalties and lease payments for production access are also tremendous sources of public revenue.