The United States is at an historic turning point for the country and its energy policies. But many Americans lack a full understanding of the oil and natural gas industry. API has assembled this oil and gasoline primer to encourage a constructive public policy debate that leads to a new fact-based comprehensive energy policy.
Sections include discussions of U.S. energy needs, investments, carbon mitigation, refineries and fuels, untapped potential of domestic resources, factors affecting price, global energy framework, and energy policy.
Energizing America is available in the PDF document and individual charts below.
Changes in gasoline and diesel prices mirror changes in crude oil prices.
Gasoline, Diesel and Crude Oil Prices (Oct. 2015)
Growth in U.S. oil production has largely offset the growth in global oil supply disruptions since 2012.
Oil Supply Disruptions vs. U.S. Oil Growth (Oct. 2015)
A host of factors, many of them uncertain, affect the price of crude oil and the products made from it.
Oil Prices Relate to Many Uncertain Factors (Oct. 2015)
World oil consumption is expected to grow as the global economy rebounds.
World Liquid Fuel Consumption (Oct. 2015)
Growth in world oil consumption is expected to be concentrated in non-OECD countries.
Growth in World Liquid Fuel Consumption (Oct. 2015)
Surplus crude oil capacity is expected to increase.
OPEC Surplus Crude Oil Production Capacity (Oct. 2015)
The value of the dollar makes a difference.
Percent Change of West Texas Intermediate Crude (WTI) in Dollars and Yen/Dollars and Euros (Oct. 2015)
The price of natural gas has fallen relative to crude oil.
Changes in the Price of Crude Oil and Natural Gas (Oct. 2015)
Looking ahead: EIA's price forecast.
EIA Price Forecast (Sept. 2015)
What Consumers are Paying for at the Gasoline Pump (as of July 2015)
What Consumers are Paying (Sept. 2015)
Profit margins provide one useful way to compare financial performance among industries of all sizes.
Second Quarter 2015 Earnings by Industry (Sept. 2015)
Earnings: Keeping America going strong.
Earnings Compared to Manufacturing (Sept. 2015)
The return on investment for the industry turned sharply lower than the returns for the S&P Industrials during the recent downturn in the economy.
Return on Investment (Sept. 2015)
When politicians talk about taxing "Big Oil" or taking their "record profits," they should think about who they really would be hurting.
Who Owns "Big Oil?" (Sept. 2015)
U.S. oil and natural gas companies pay their fair share and are a tremendous source of public revenue.
Income Tax Expenses as Share of Net Income Before Income Taxes (Sept. 2015)
The high effective tax rates associated with the oil and gas industry are a function of the nature of the business.
Effective Tax Rates among industries (Sept. 2015)
Raising taxes on the oil and natural gas industry will not lower the price of fuel.
Economic Consequences of Higher Taxes (Sept. 2015)
To understand the oil and natural gas industry, one must recognize it as an industry characterized by long lead times, huge capital requirements and returns realized only decades later in the face of very real investment risks.
Capital Spending for US Projects (Sept. 2015)
Shale driven energy production is reshaping the U.S. oil and natural gas infrastructure landscape.
Capital Spending for Infrastructure (Sept. 2015)
Decades of investments of hundreds of billions of dollars have been made by the oil and natural gas industry to protect the environment and improve the performance of its products, facilities and operations.
U.S. Environmental Expenditures since 1990 (Sept. 2015)
The U.S. oil and natural gas industry is spending billions of dollars developing new advanced energy technologies to reduce greenhouse gas emissions and meet future energy needs.
Carbon Mitigation Investment by Investor Group (Oct. 2015)
Oil and natural gas companies are taking action now to reduce greenhouse gas emissions and investing in the technologies and fuels that will reduce them even more in the future.
Carbon Mitigation Investment by Technology and Investor Group (Oct. 2015)
Carbon mitigation investments have helped reduce industry greenhouse emissions.
Greenhouse Gas Emission Reductions (Oct. 2015)
The EIA projects U.S. energy-related CO2 emissions will be lower in 2040 than when they peaked in 2007.
U.S. Energy-related CO2 Emissions (Oct. 2015)
Methane emissions are falling even as natural gas production is increasing.
Methane Emissions and Natural Gas Production (Oct. 2015)
U.S. refining capacity continues to expand even as the number of refineries contracts.
Number of Refineries Declines but Capacity Expands (Sept. 2015)
For the first time since 1949, the U.S. became a net exporter of petroleum products in 2011.
Net Exports of Total Petroleum Products (Sept. 2015)
The U.S. balance of petroleum products traded has shifted significantly.
Net Imports and Exports of Petroleum Products by Region (Sept. 2015)
Our industry is the nation's largest user of ethanol and is increasing the volume of renewable fuels in America's transportation fuel portfolio.
Expanding Alternative Fuels for Transportation: Current Laws (Sept. 2015)
The percentage of the corn crop used for ethanol is growing.
U.S. Corn Use 2015/2016 (Sept. 2015)
Energy efficiency is the cleanest, quickest and most cost-efficient way to extend today's energy supply in the future.
U.S. Energy Demand per Dollar of GDP - Growing Efficiency (Sept. 2015)
Although the share of non-fossil fuels is growing rapidly, fossil fuels - oil, natural gas and coal - will continue to play leading roles through 2040.
Future U.S. Energy Demand (Sept. 2015)
Just 9 percent of the nation's energy needs are supplied by renewables, which are expected to supply 12 percent by 2040.
Role of Renewable Energy Consumption in the Nation's Energy Supply, 2013 (Sept. 2015)
Role of Renewable Energy Consumption in the Nation's Energy Supply, 2040 (Sept. 2015)
Oil is expected to remain the dominant fuel in our nation's energy mix for decades to come.
Energy Consumption by Sector, 2013 (Sept. 2015)
Energy Consumption by Sector , 2040 (Sept. 2015)
U.S. oil and natural gas production is increasing as a result of technological innovation.
U.S. Crude Oil Production and Natural Gas Marketed Production (Sept. 2015)
Shale plays are widely dispersed across the U.S.
Shale Plays, Lower 48 States (Sept. 2015)
The U.S. is less dependent on others for our oil needs.
Net Import of Crude Oil and Petroleum Products as a Share of Consumption (Sept. 2015)
Production of natural gas and oil from shale and other tight formations is offsetting declines in other U.s. natural gas and oil sources.
U.S. Crude Oil and Natural Gas Production by Source (Sept. 2015)
The export of LNG represents one of the most promising economic opportunities of the shale revolution.
Why Export Liquefied Natural Gas? (Sept. 2015)
Developing domestic sources of oil and natural gas will be an important bridge to our energy future.
U.S. Undiscovered Technically Recoverable Crude Oil and Natural Gas Resources (Sept. 2015)
America can become a global energy superpower - but only if our leaders pursue smart energy policy.
U.S. Offshore Undiscovered Technically Recoverable Federal Oil and Natural Gas Resources (Sept. 2015)
Oil and natural production are down on federal lands and waters.
U.S. Oil and Natural Gas Production on Federal vs. Non-Federal Lands and Waters (Sept. 2015)
The purchase of a lease is always a gamble. Exploration is not a risk-free proposition, but it is an essential part of the energy business. There is nothing idle about it.
The Myth of Idle Leases (Sept. 2015)
Ultimately recoverable oil resources dwarf current proven reserves.
Ultimately Recoverable Oil Resources (Sept. 2015)
Increasing access to domestic sources of oil and natural gas would create new high paying jobs, bring billions of dollars to federal and state treasuries, reduce our balance of payments and enhance America's energy security.
Oil and Natural Gas Jobs Pay Well (Sept. 2015)
Development of Canadian oil sands would benefit the U.S. economy.
Canadian Oil Sands (Sept. 2015)
Most energy analysts agree that sustaining even modest economic growth worldwide for the next several decades will require massive new investments in oil and natural gas.
Future Global Energy Demand (Sept. 2015)
There are accumulating risks to the development of oil and natural gas.
Accumulating Risks to the Development of Oil and Natural Gas (Sept. 2015)
In terms of market power, investor-owned international oil companies (IOCs) own just 6 percent of the world's oil reserves.
The Myth of "Big Oil" (Sept. 2015)
U.S. companies face stiff competition for market share.
2013 Largest Oil Companies (percent of worldwide proved reserves)
2013 Largest Oil Companies (percent of worldwide crude and liquids production)
2013 Largest Natural Gas Companies - percent of worldwide proved reserves (Sept. 2015)
2013 Largest Natural Gas Companies - percent of worldwide crude and liquids production (Sept. 2015)
Diversifying sources of supply.
U.S. Supplies of Crude and Products/Net Imports - 2014 (Sept. 2015)
U.S. Supplies of Crude/Net Imports - 2014 (Sept. 2015)
Energy development hinges on energy policy.
Energy Policy Choices and Consequences (Sept. 2015)