Five Things You Didn't Know About America's Oil Industry
The United States is one of the top players in the oil and gas industry worldwide. In 2017, the U.S. was both the top oil producer and top oil consumer. But where did American oil and gas get its roots and what is going on in today’s industry? Here are some things you may not know about oil and gas in America.
How things started
The first commercial oil well was established by Edwin Drake in Titusville, Pennsylvania. In 1859, Drake struck oil after drilling to a total depth of 69.5 feet. The first batch of oil from the well was collected in a bathtub after being surfaced with a hand pitcher pump.
One of the biggest influences Drake’s work has had on today’s oil companies is his use of piping. When drilling for oil in 1859, Drake utilized cast iron piping that prevented borehole collapse down to 32 feet, the point at which his team hit bedrock. His tools were then placed in the pipe so that the drilling could continue with the use of steam.
Where we are today
The United States consumes an average of over 19 million barrels of oil each day. According to the U.S. Energy Information Administration (EIA), the annual average U.S. crude oil production in America hit 14.46 million barrels per day. Those totals don’t quite match up, right? Well the U.S. imported about 10.1 million barrels per day in 2017, according to the EIA.
The growth of production is substantial in the U.S. as annual crude oil production increased by 464,000, or 5%. The EIA projects that this production will continue increasing, reaching an average of 10.7 million barrels per day in 2018.
Growing trends in the industry
American oil companies are becoming more digital as technological advances are helping reduce certain costs through the year. Digital technologies are helping companies with asset maintenance, development of their oil fields, and so much more! American companies are becoming much more efficient with digital and technological advancements, with potential improvements to revenues and income.
As global oil and gas companies combine to total $2.4 million in operating costs, those in the U.S. can definitely take advantage of the cost-saving technologies.
Pipelines span the world, literally
If we expand our scope to just North America, there are enough pipelines that they would circle the Earth 20 times if laid end to end. Over 2.4 million miles of the pipeline total falls within the United States, giving the country the largest energy pipeline network in world.
The Appalachian Basin is the place to be
2017 was a big year for drilling in The Appalachian Basin as nearly 2,300 drilling permits were issued. The Appalachian Mountains provide a great line of oil and gas development as the range is lined by Chattanooga Shale, Marcellus Shale, and Utica Shale. There are almost 12,000 horizontal wells in the Appalachian Basin that are producing, and drilling has increased as the area is working to get energy liquids to market.
Hornet Corporation’s sites put us in the prime location to take advantage of the shale play possibilities in the area.