ESSAYS ON ECONOMICS

 

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Essay on Oil Consumption


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Essay on Oil Consumption

The use of products the industrial sector is more diverse than in any other sector of the economy. In 2003, the industrial sector was supplied with 9.31 Quads of petroleum, about 4.87 MBD of oil. The majority (about 78 percent) goes to non-fuel uses, with the remainder consumed as fuels. By 2020, this is projected to grow to over 11 Quads. The industrial sector is made up of four sub-sectors: agriculture (including farming, ranching, forestry, and fisheries), construction, mining, and manufacturing. In the agriculture sub-sector, almost all the petroleum products are used as fuels. This sub-sector uses distillate (primarily diesel) for off-highway vehicles and equipment (e.g., tractors and combines), propane for heating drying operations, and gasoline primarily for stationary engines to generate electricity or pump water.

The construction sub-sector uses 71 percent of its petroleum products for non-fuel uses (primarily road tar and paving asphalt). The remainder is used primarily for off-highway construction equipment (e.g., grading, earth moving, and excavation equipment) and onsite power generation. In the mining sub-sector, the vast majority of the petroleum used is distillate (i.e., diesel fuel) with only about 11 percent having non-fuel uses .

Manufacturing accounts for the largest share of the industrial petroleum products use at about 6.43 MBD of oil in 2003, or 69 percent, of the petroleum products used in the industrial sector. The vast majority (about 94 percent) of petroleum products in manufacturing go to non-fuel uses. About half are used as intermediate feed stocks, principally in the petrochemical industry to make other products such as plastics, fibers, consumer chemicals, and pharmaceuticals. Of these feedstocks, 98 percent is used in the form of liquefied petroleum gas (LPG) or natural gas liquids (NGL).......

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