279
Natural gas is a major input to many chemical processes, and is also a very
cost- effective and clean-burning fuel for cooking and heating in homes and businesses. Importantly, much of the natural gas in the USA is now used for natural gas
turbine power plants, owing to the relatively low cost, low water use, high ramp rates,
low capital costs, and low air pollution of natural gas turbines compared with other
energy sources. Because natural gas is relatively easy to produce using small wells,
there are a large number of small private gas producers mixed with the major corporations in the production market. The transportation and storage system in the USA
is privately owned, in a model for pipeline ownership that resembles the private
railroad model. Natural gas prices have fallen dramatically in the last 10 years due to
the introduction of hydraulic fracturing technologies, so natural gas is among the
least expensive energy sources at the moment. Natural gas production, like oil production, frequently occurs under public license on publicly owned lands, and is
therefore subject to significant public oversight in the USA. Eminent Domain is
sometimes applied for the development of pipelines in the USA. Natural gas is traded
internationally, and Europe is heavily dependent on Russia for natural gas. This creates vulnerability in Europe to Russian pressure in the energy supply chain. The
USA, another major producer, has historically banned natural gas exports since 1975
for reasons including the promotion of energy self-sufficiency; these policies have
recently been relaxed, however. Pollution of water and air is a major regulatory issue
for natural gas production, with controversy around hydraulic fracturing water pollution and methane leakage growing as current issues. Natural gas use generates less
greenhouse gas than coal or oil products but is still a significant source of CO 2 from
combustion, and pipeline leaks are a problematic source of methane emissions.
10.3.4 Energy: Liquid Petroleum Fuels, Fuel Oil,
and Gasoline
Crude OIL is extracted from onshore and offshore wells through conventional drilling and hydraulic fracturing operations. It is produced in 32 US states and in US
coastal waters. Approximately 65% of total US crude oil production came from five
states: Texas (38%), North Dakota (11%), Alaska (5%) California (5%), and New
Mexico (5%). A global approach shows that about 100 countries produce crude oil,
however 48% of the world’s total crude oil production comes from five countries:
Russia (13%), Saudi Arabia (13%), USA (12%), Iraq (6%), and Iran (5%) (US EIA
2017). From the wellhead, it is pumped out to be transferred to tankers, pipelines, rail
carts, and trucks to be transported to refineries and short-term storage facilities.
The refined product is also stored in short-term storage facilities, which helps
regulate the fluctuations in supply and demand and supplies product for the
U.S. Strategic Petroleum Reserve (SPR). The USA has 615 million barrels of
storage capacity at short-term storages near refineries and 950 million barrels of storage capacity at long term storage terminals that make up the SPR. An additional 89
million barrels can be stored in the extensive pipeline system (America’s Petroleum
10 Infrastructure
Natural gas is a major input to many chemical processes, and is also a very
cost- effective and clean-burning fuel for cooking and heating in homes and businesses. Importantly, much of the natural gas in the USA is now used for natural gas
turbine power plants, owing to the relatively low cost, low water use, high ramp rates,
low capital costs, and low air pollution of natural gas turbines compared with other
energy sources. Because natural gas is relatively easy to produce using small wells,
there are a large number of small private gas producers mixed with the major corporations in the production market. The transportation and storage system in the USA
is privately owned, in a model for pipeline ownership that resembles the private
railroad model. Natural gas prices have fallen dramatically in the last 10 years due to
the introduction of hydraulic fracturing technologies, so natural gas is among the
least expensive energy sources at the moment. Natural gas production, like oil production, frequently occurs under public license on publicly owned lands, and is
therefore subject to significant public oversight in the USA. Eminent Domain is
sometimes applied for the development of pipelines in the USA. Natural gas is traded
internationally, and Europe is heavily dependent on Russia for natural gas. This creates vulnerability in Europe to Russian pressure in the energy supply chain. The
USA, another major producer, has historically banned natural gas exports since 1975
for reasons including the promotion of energy self-sufficiency; these policies have
recently been relaxed, however. Pollution of water and air is a major regulatory issue
for natural gas production, with controversy around hydraulic fracturing water pollution and methane leakage growing as current issues. Natural gas use generates less
greenhouse gas than coal or oil products but is still a significant source of CO 2 from
combustion, and pipeline leaks are a problematic source of methane emissions.
10.3.4 Energy: Liquid Petroleum Fuels, Fuel Oil,
and Gasoline
Crude OIL is extracted from onshore and offshore wells through conventional drilling and hydraulic fracturing operations. It is produced in 32 US states and in US
coastal waters. Approximately 65% of total US crude oil production came from five
states: Texas (38%), North Dakota (11%), Alaska (5%) California (5%), and New
Mexico (5%). A global approach shows that about 100 countries produce crude oil,
however 48% of the world’s total crude oil production comes from five countries:
Russia (13%), Saudi Arabia (13%), USA (12%), Iraq (6%), and Iran (5%) (US EIA
2017). From the wellhead, it is pumped out to be transferred to tankers, pipelines, rail
carts, and trucks to be transported to refineries and short-term storage facilities.
The refined product is also stored in short-term storage facilities, which helps
regulate the fluctuations in supply and demand and supplies product for the
U.S. Strategic Petroleum Reserve (SPR). The USA has 615 million barrels of
storage capacity at short-term storages near refineries and 950 million barrels of storage capacity at long term storage terminals that make up the SPR. An additional 89
million barrels can be stored in the extensive pipeline system (America’s Petroleum
10 Infrastructure