5 Things You Should Know About America's Oil & Gas Industry
The United States is a major player in the worldwide oil and gas industry. The U.S was both the top oil producer and consumer for 2017. Where did the American oil and gas industry get started though? What do things look like now? Here are five things that you might now know about the oil and gas industries of the United States.
Where it All Started
The first commercial oil well was established in 1859. It was built in Titusville, Pennsylvania by Edwin Drake. Drake drilled to 69.5 feet before he managed to strike oil. The first batch of oil from the well was originally collected wit hand pitcher pumps and stored in a bathtub.
Oe of the major ways that Drake influenced the modern oil company is that he used piping. When he was drilling for oil back in 1859, Drake used cast iron piping to prevent borehole collapse down to 32 feet, which is when his team hit bedrock. His tools were placed in the pipe so the drilling could continue with some help from steam power.
The Modern Oil Industry
The United States currently consumes around 19 million barrels of oil per day. The United States Energy Information Administration (EIA) suggests that America produces around 14.46 million barrels of crude oil each day. The totals don’t quite match up, which is why the EIA also say that the United States imported around 10.1 million barrels per day in 2017 to make up the difference.
There’s been substantial growth in the production of oil for the United States with annual crude oil production increasing by 464,000 (5%). The EIA predicts that production will continue to increase and reach an average of 10.7 million barrels per day for 2018.
Oil Industry Trends
The American oil industry is waking up to the power of digital technology with technological advances helping to reduce costs for the industry. Digital technologies have helped companies with their asset maintenance, developing oil fields, and more. American companies have improved efficiency through digital and technological advancements, with several more potential improvements for revenues and income in the works.
Given that the global operating costs for oil and gas companies reached $2.4 million, there’s definitely good reason to take advantage of the cost-cutting power of technology for American oil companies.
Pipelines Around the World
If you were to consider the oil pipelines in just North America, there would be enough pipelines to stretch around the Earth 20 times if they were laid out end to end. There are over 2.4 million miles of pipeline within the United States, giving the country the world’s largest energy network.
The Appalachian Basin Is Where It’s At
2017 proved to a major year for drilling in the Appalachian Basin with around 2,300 drilling permits issued in the area. The Appalachian Mountains offer a great line of oil and gas development with the range lined by Marcellus Shale, Chattanooga Shale, and Utica Shale. There are around 12,000 horizontal wells in the Appalachian Basin producing oil and drilling has increased with the area working to get their liquid energy to market.