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Petroleum in February 2021

Now that Biden is in office, the clean energy deal is making way. As of February 2021, actions have already been taken to start the transition. Here’s the latest news on the petroleum industry.

 

Petroleum February 2021

In 2020, North America broke the record for exporting the most amount of oil to India. As of January 2021, 11% of India’s oil comes from the U.S. and Canada. Additionally, we know that the Keystone XL Pipeline is coming to an end. This massive 1,179-mile crude oil pipeline was the heart of distributing oil throughout America. Now, Biden ordered a halt to further construction. This is in order to protect Native American land.

Corpus Christi, TX Refinery

The massive blizzard that hit Texas had a huge impact on oil. The deep, long-lasting freeze proved some damage to the refineries. Therefore, reduced oil production will limit nationwide distribution. Also, companies are heavily under fire for lack of regulation. Specifically, not winterizing plants and refineries. The bottom line is that oil and gas may get a lot more expensive as petroleum companies financially recover.

 Shell is working to balance successful oil production and green energy. They claim their carbon emissions have peaked, and are moving to green energy. They plan to reduce emissions by 6-8% by 2023. With 2020 hitting their oil profits hard, they understand that renewable energy is moving up to replace oil & gas. On that note, many petroleum companies are aware that their options are either to go green or abandon ship.

The vaccine rollout, cheap hotel prices & flights, and reduced lockdown restrictions are driving people to go out again. As a result, gas prices are at the same prices as pre-COVID. And, they’ll only get higher as summer comes closer.

Oil Today

Between the hard financial hits of 2021, the Texas blizzard, and the rise of renewable energy, the days of oil and gas are starting to wane. For more information on petroleum in February 2021, check out Oil News Today.

 

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The History of Oil

Last week, we read about the history of solar power. Today, we will be looking at the second installment in the History of Energy series. Midland, TX, home of the Bushes, has an intricate petroleum museum. The history of oil is (black) gold!

 Oil History

Lucas Gusher in Beaumont, TX. 1901.

Although it wasn’t as well-known as solar and wind power, mankind’s oil use has been around since earliest civilizations. The Chinese created oil wells back in 300 AD! During their salt harvest, illegal salt traders would dig deeper than most wells. Thus, oil was first discovered. Apparently, they kept it a secret “well” enough because oil wasn’t widely known about until the mid-1800’s. In 1847, James Young was in the Riddings Coal Mine in England when he noticed oily seepage through the dirt and coal. As a chemist, Young managed to extract more oil out of the coal. A few months prior, geologist Abraham Gesner discovered how to make kerosene extract out of oil.

Petroleum became commercialized in Pennsylvania in 1859  when the first American oil well was constructed. Then, it became monetized by the notorious John D. Rockefeller in 1865. The Suez Canal was constructed for the passage of oil ships. Then, on January 10, 1901, the Lucas Gusher at Spindletop expelled 100,000 barrels of oil a day, for 9 days. This discovery of mass amount of oil forced Pennsylvania to give up their oil capitol title to Texas. Since then, Texas remains the top producer of oil in the United States.

The earliest uses of oil was for asphalt, salt, and lamps. First, the earliest Chinese people used bamboo to drill oil and made ink out of it. Ancient Babylonians hardened oil into asphalt, which they used for construction. Lamps previously used whale oil, but they needed something more. Oil was made into kerosene, which powered lamps for centuries. It was at the beginning of the 20th century when oil’s primary use became to power automobiles.

Oil Now

Today, oil is primarily used for the internal combustion engine, or to power cars. Other uses include heating, cooking, and to produce electricity. Plastic, cosmetics, and medical devices are all made from oil or have oil in it. Paraffin wax is also an oil byproduct. The world’s biggest oil producers are United States (Texas produces 40% of the U.S.’ oil), Saudi Arabia, Russia, and Canada.

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The Energy Industry Under Biden

Now that we know that Joe Biden will be our new president, we can follow up with our previous blog and take a look at what the energy industry might look like in the next few years. It appears  that Biden plans on battling climate change with clean energy. This blog will continuously update as time and policies progress.

Clean Energy, Clean Economy

According to his own personal website, Biden plans to push for cleaner energy with the Clean Energy Revolution. In this policy, he addresses how the economy relies on the environment. Therefore, his policy will go in a clean economy direction. Specifically, eliminating fuel emissions by 2050. It’ll start by initiating clean energy in environments that need it most. Factories and refineries that heavily pollute the air will have to adapt to cleaner emission policies. Or, revamp into a clean energy facility. Soon, solar and wind energy will take over oil and coal. But, Biden plans to transition out, not completely shut down fossil fuels. It is important to remember the Clean Energy Revolution will be a hefty project. Due to the time and engineering this change requires, there’s time for compromise between Biden and the oil industry.

One of the rising issues in our environment is fracking. In the second debate, Biden claimed to want to put an end to fracking. Currently, fracking is causing tectonic plate problems in Oklahoma and other areas. Oil companies may have to find another way to drill, or restrictions may be placed on fracking.

 

Jobs

Because the policy’s main goal is to transition efficiently, oil & gas-based jobs will be replaced with clean energy jobs. And, the project will create new jobs for the energy industry, too. According to The NY Times, Joe is not sleeping on this- he’s already drafting ideas and plans. His administration is also considering creating a White House branch specifically for climate change. You can read here about what Biden plans to do for the energy industry’s job sector.

 

We hope to see the Biden administration leading the energy industry with care. Clean energy and a clean environment is important to us. But, we understand that many depend on petroleum and coal. With careful innovation and compromise, every factor of the energy industry can prevail under Biden.

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Oil Industry Update November 2020

Our previous blog mentioned ways energy plays a part in our lives. Now, we’ll go more in depth about the oil industry & COVID-19’s impact. As a result, it is becoming more obvious that we don’t need oil as much as we thought so. We will always use it, but maybe it’s time for petroleum to step out of the spotlight. However, the presidential election will have a say on oil’s future. Here’s what major oil companies have to say about the state of their industry.

 Oil’s Current Situation

COVID-19, heightened environmental awareness, and hurricanes have not been kind to the fossil fuel industry. In March, many refineries closed, drastically slowing oil production. July and August brought in a mass amount of hurricanes, destroying rig set-ups. Environmentalists are becoming increasingly concerned about marine oil spills and fracking. CNBC states, “Due to the ongoing impacts of Covid-19, the IEA expects global energy demand to fall by 5% in 2020, with oil and coal consumption falling 8% and 7%, respectively.”

One of Texas’ biggest oil companies, EOG Resources, is determined to make a comeback as they know how crucial oil is for Texas economy. Their stocks are slowly creeping back up, indicating a slow recovery. The Permian Basin is attracting oil business. Right now, oil’s biggest purpose is for vehicles, heating, and producing electricity. So, while oil has dropped drastically, the oil industry is using this time to re-structure business to prepare for less overall production.

Oil Industry Possible Future

It’s quite possible that oil will be replaced by the much more sustainable solar energy. This is due to environmentalism conservative movement and production costs. With that in mind, companies are working towards more safe practices. Drilling is triggering more earthquakes (in Oklahoma) and refineries pollute the air with smoke. Energy experts predict that oil will be replaced by wind & solar energy for electricity production. Meaning, in a few years, oil’s main purpose will just be fueling vehicles and engines. On the other hand, it’s hard to tell. Oil could go right back to pre-March success. After all, oil will always be essential to the energy industry. Here’s more data and statistics explaining petroleum’s projected path to 2050.

 

Oil’s future also depends on the presidential election outcome. Joe Biden is calling for a major decrease in production, as much as cutting it in half. Contrastingly, Donald Trump wants the economy stimulated in any way he can and will encourage oil to continue on. Will oil be able to conquer the election, environmental activism, and the pandemic? Only time will tell, but we do know that oil will likely never go back to the height it was at pre-March, but it will never completely phase out either.

 

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Energy Industries In Our Lives

While the petroleum, wind, and solar energy industries can stand alone, they’re all connected in some way. Many individuals use a combination of the three daily. From small devices to enormous solar panels, we incorporate these energy sources in numerous ways. Here are all the ways the three major industries play a role in our lives. Electricity is produced by two of the three. Gas heats up water, then the steam and wind work together to produce an electrical current.

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Daily Lives

The most obvious one, cars use petroleum. Scientists entertain the idea of solar-powered cars, and they may happen one day. Realistically, we use oil, wind, and solar in our homes and when we go out. While oil and wind are more accessible, solar is rising and becoming more available for common use. Residential use takes up about 40% of energy use. Our kitchen and bathroom uses gas to heat up the stove and our water. Our AC/heating system uses gas. Homes can pull their electricity from solar power. In windy climates, wind turbines are viable for powering a city. Outside of the home, crosswalk signs and other electrical signs are starting to come with a solar panel. This article gets more in-depth about how humans rely on energy sources.

Energy Industries on a Bigger Scale

Energy on a bigger scale, such as in factories and plant facilities, rely on the big three as well, mainly petroleum. Major industries are moving towards solar and wind to save petroleum. This will help the environment: factories and production plants burn through immense amount of coal, oil, and gas, which winds up polluting the air. This has come to light in recent years, igniting a movement towards solar and wind. Solar and wind farms are becoming increasingly popular. Business and office buildings are also responsible for using energy on a major scale. Power plants divert most of their energy into the inner cities, where the energy-consuming buildings are. Large engines, such as planes, trains, and large cargo ships, are powered from diesel.

 

We rely on all sorts of energy every day, including water and biofuels. It takes the awareness of common people to push for cleaner energy practices, and not waste the energy we do have. While coal/thermal energy once reigned, now gas/oil does. However, it’s harmful for our environment so we must push for solar and wind.

 

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