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The oil and gas industry is one of the world’s largest industries. With their contributions to taxes, they are a large source of public revenue. Oil and gas companies pay royalties and lease payments to the federal government for production access. Crude oil is one of the most important products of the oil and gas industry, so it is no wonder that crude oil companies are one of the top companies in the United States. You can read reviews online of various crude oil companies to gain insight into why they are so important. Crude oil production forms a part of the downstream stage of oil and gas operations, with their biggest product being petroleum.
Petroleum companies operate as an energy source for the US. This energy can be used to propel vehicles, heat buildings, as well as produce electricity. Approximately 18.2 million barrels of petroleum are consumed in America daily. The United States accounts for 20% of the world’s petroleum consumption. There are 4 main petroleum products:
1) Gasoline: This is the most consumed petroleum product in the U.S, with roughly 8 million barrels of motor gasoline used per day. An oil barrel amounts to 42 gallons of oil. Gasoline used in the Transportation industry accounts for 66% of petroleum consumption.
2) Distillate fuel oil: This includes diesel fuel and heating oil for space heaters.
3) Hydrocarbon gas liquids: These are propane, ethane, and butane, which can be used for space heat and cooking.
4) Jet fuel: This is used as an aviation fuel to power jet engines and aeroplanes.
Petroleum is used in many industries such as transportation (as mentioned above), industrial, residential, commercial and electric power. Petroleum is used for more than just industrial use. Petroleum can be used in products like nail polish, rubbing alcohol and ammonia, as well as in recreational items such as life jackets, tents and bicycle tires. It is also used in diesel-powered generators, which act as an energy source for homes, schools, and hospitals.
Petroleum companies generate roughly $180 million in revenue every year. With the companies employing around 9 million people, they account for 5.6% of all American employment. With such high revenue it is a tremendous boost for the economy. Oil prices have a significant impact on the country’s economy, and accounts for 8% of America’s Gross Domestic Product, or GDP. They can also influence the cost of manufacturing and production across the country. A drop in fuel prices could result in lower transport costs and a decrease in airline tickets.
With all the benefits, uses and contributions made by the petroleum industry, it is not hard to see why it is one of the top oil companies in the United States. Petroleum and petroleum products are useful in almost everything in our homes and cars, and benefit us tremendously. Whilst there are a few negative aspects of the oil industry, such as the impact on the environment, it is important to note that many oil and gas companies have spent billions of dollars to develop new and advanced energy technologies, which aim to reduce greenhouse emissions, and thus the effect on global warming and the environment.