The Oil And Natural Gas Industries

Oil suppliers dig deep down to the roots to analyze and derive concrete solutions to carry on the rising market. The force of fracking in the United States is lifting the economy; the system has been a political game changer for the nation, creating job opportunities and investing money into the community. The United States is currently capable of competing with the global marketplaces at a high rate. This coordination leads to knowledge for on-shoring manufacturing, which eliminates the dependency on foreign oil. This significant groundwork is driving opportunities for innovators. The abundant supply of oil and the inexpensive cost leads to cheaper energy for consumers (Dews, 2015). Along with the low price for refineries,

Oil was first thought to be discovered in the state of Louisiana in 1868 by the Louisiana Oil and Coal Company fifteen miles west of Lake Charles. However, the Louisiana Oil and Coal Company was unsuccessful at drilling oil but the company did find extensive sulfur deposits. (Louisiana Mid-Continent Oil and Gas Association. (n.d.). Retrieved October 07, 2016, from http://www.lmoga.com/resources/oil-gas-101/history-of-the-industry/) Oil was first discovered in Louisiana on September 21, 1901. (Louisiana Mid-Continent Oil and Gas Association. (n.d.). Retrieved October 07, 2016, from http://www.lmoga.com/resources/oil-gas-101/history-of-the-industry/)

Our dependence on foreign oil and natural gas has created a vulnerability affecting our national security and economic stability. Up until this past decade there was an appreciable decline in our oil and natural gas production in the US and we were tied to world market price fluctuations. Oil prices and natural gas prices rose and fell based on OPEC’s and other large oil and natural gas producers’ production and pricing decisions. Beginning in 2005, things began to change in the US oil and natural gas industry. New technology called hydraulic fracturing or “fracking” made it possible to extract oil and natural gas from geological

The Industrial Revolution created a society and energy consumption based on coal. However, in a more traditional society, natural gas has been obtained through oil drilling. While

In contrast to the United States becoming 100 percent self sufficient in oil we need to invest in the foundations of technologies that could completely wean us off of oil, and other natural gases. While a self-sufficiency in oil is great because it decreases our dependency on other nations as well as helping to stabilize an otherwise erratic economy, it can only last for so long. Oil, a natural gas, cannot be created

In addition to the US peak oil situation, the US Oil Drilling and Gas Extraction Industry faces heavy foreign market competition. In 2011, the US ranked 3rd in oil production, behind Saudi Arabia and Russia (Energy, 2012). Saudi Arabia’s OPEC governor expects Saudi output to rise steadily beyond 2030 with a 1.5 million barrel per day spare production capacity then (Energy, 2012). Russia holds the world’s largest

At some point in everyone’s lives, we are affected by the rising gas prices in today’s economy. Natural gas is not a renewable resource, since there is a fixed amount of it trapped in the Earth. However, many people carry the misconception that there is a very limited amount of natural gas, and that we may use all of it up. This isn’t true. The gas shortages of the 1970's were prompted by the government’s lack of faith in the industry’s ability to discover and develop new reserves, not by lack of gas supply. The unfortunate impression left by the shortages of gas in the 1970's caused the people to believe that there was a small amount of gas left. On the contrary, the gas resource base is vast, and probably even

America must wean itself off of dependence on foreign oil, and one valid solution to this problem is offshore oil drilling and production. America’s economy is heavily based on petroleum, as though it is the nation’s blood; a necessity for survival. About 25% of oil produced in the U.S. comes from offshore rigs. Most of the U.S. coastline has been off limits for oil drilling since the early 1980s. Due to environmental concerns after an oil spill off the coast of California in 1969, an offshore drilling moratorium was imposed. Since then, the U.S. has amplified its energy consumption to where it uses nearly 25% of the world's oil. Meanwhile, the U.S. produces about 10% of the world's oil. That has made the U.S. heavily reliant on imported

In January 2016, the cost of a gallon of gas dropped below two dollars, and consumers were rejoicing. Driving that car with twelve miles to the gallon car wasn’t so bad. Going to the grocery store was a little cheaper because of the transportation costs of goods. Americans could afford a like extra and never wonder about why the gas dropped. We were still hurting from three dollars or more for a gallon. Companies in the United States started drilling for oil on American soil in larger quantities than before two years earlier in 2014. Jobs in the industry were aplenty. Young adults straight out of high school could go into training for a year and come out making six figures by they were twenty-five. The amount of oil produced was

The United States currently has the realistic capability of meeting roughly 64 percent of its gas demand with alternative fuels. This plan of alternative fuels relies mostly on BioDiesel from algae, while also utilizing ethanol from corn. As for the other 36 percent of our demand, we can rely on our own crude oil production by utilizing natural gas (CNG). A great attribute of all of these fuel sources is that they can be distributed

In the U.S., the advanced hydraulic fracturing and horizontal drilling lead to a revolution of natural gas and oil, brining about the dynamic job opportunities and economic growth which affects other industries apart from natural gas and oil field. As a superpower of energy, the United States can make good use of its rich resources with the correct policies and build a bright future for Americans and reduce energy-caused risks globally (Mark Green, 2014).

The multi-billion dollar gas industry is seeking to expand its production across the nation, in light of new technology making extracting natural gas much easier. A Healthy alternative to the fossil fuels we so frivolously use is now more critical than ever. In 2011, the United States used 18.83 million barrels of raw oil daily, and in 2010 19.18 million barrels of petroleum products and biofuels. In 2010 and 2011, that was nearly 22% of the world’s oil supply. (U.S Department of Energy)

Robert Samuelson's article, "Let's export oil," is a brilliant opinion on the macroeconomic advantages of exporting oil in the international markets and the need to lift the ban on the export of crude oil. The application of new drilling techniques has resulted in an exponential increase in the production of crude oil. This increased production has given us the opportunity to reevaluate our position on the ban on the export of crude oil, because with this new capability comes a responsibility of stabilizing the global oil market as a responsible member of the global community, not to mention our responsibility towards the American people by curbing our import dependence. The author details how this ban is handing an unfair advantage to hostile countries such as Russia and Iran, while severely limiting the options to oil producers in the States, who would eventually reduce, if not stop, new exploration because the ban makes it a less lucrative project which is not worthy of investing time and resources on it. While trying to be fair and balanced, he highlights the risks involved in transporting oil by trains and inadequate pipelines, while explicitly mentioning the environmental worries about fracking. He clearly points out the microeconomic implications by mentioning that the quadrupling of oil prices in the early 1970s led to the ban on oil exports. He understands that persuading the public may be difficult, and that is where political leadership needs to bridge this divide by explaining to the public in the most efficient way possible that despite the risks involved, the gains outweigh the costs.

economy robust. According to the American petroleum institute (2013), the total employment impact of the US oil and natural gas industry’s on the national economy in 2011 was in the amounted to 9.8 million full-time and part-time jobs and accounted for 5.6 percent of total US employment. The above numbers include both operational and capital investment impacts (“Economic impacts,”2013). When the direct, indirect, and induced impacts were summed up, the industry’s total impact on labor income (including proprietors’ income) was $598 billion or 6.3 percent of national labor income in 2011. According to Analysts, the contribution of the industry to the US GDP was $1.2 trillion, accounting for 8.0 percent of the national total in 2011(“Economic

To start with, it is evident that oil is an essential for the United States which is used as gasoline, heating oil, etc. However, after an explosion damaged the Deepwater Horizon oil rig operated by BP there has been much debate about banning deepwater oil drilling. Bearing in mind that the need for oil is inevitable one must consider the economic costs of banning deepwater oil drilling. First of all, banning oil drilling which may be a leading energy source will affect the economy for years. One must consider that banning oil drilling will result in a great deal of job loss to people already in the industry. According to Dr. Joseph R. Mason, chair of banking at the Ourso School of Business at Louisiana State University, “In the Gulf economies,