Oil and Gas

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Petroleum ("oil") and natural gas are hydrocarbons that formed over millions of years under heat and pressure deep in the Earth. Petroleum and natural gas are the largest sources of energy in the United States.

Basics

The Aleyska pipeline in Alaska that transports crude oil from Prudhoe Bay down to Valdez. Image Copyright © Larry Fellows, Arizona Geological Survey.

Petroleum ("oil") and natural gas form from tiny plants and algae that settled in seas or lakes millions of years ago. This organic material reacts under heat and pressure to form oil and/or gas.[1] Petroleum products include gasoline, heating oil, propane, and kerosene. Not to be confused with gasoline, natural gas is mostly methane — a clear, odorless gas. When burned, oil and gas release abundant energy as well as carbon dioxide and water.   Read more

Frequently Asked Questions

American Geosciences Institute
American Geosciences Institute
American Geosciences Institute
American Geosciences Institute
U.S. Energy Information Administration

Case Studies & Factsheets

Cover of Water in the Oil and Gas Industry

Introduction The oil and gas industry consumes and produces water. Water is used to drill and hydraulically fracture (“frack”) wells, refine and process oil and gas, and produce electricity in some natural gas power plants. Water is also naturally present in the rocks that contain oil and gas and...

Cover of Heavy Oil

Introduction Naturally occurring crude oil comes in many forms. The most familiar to many people is light crude oil, which is less dense than water and flows easily at room temperature. Heavy oil and bitumen are forms of crude oil that are more viscous (thicker) and dense. The largest crude oil...

Cover of Induced Seismicity from Oil and Gas Operations

Manmade Earthquakes Any activity that significantly changes the pressure on or fluid content of rocks has the potential to trigger earthquakes. This includes geothermal energy production, water storage in large reservoirs, groundwater extraction, underground injection of water for enhanced oil...

Cover of Groundwater Protection in Oil and Gas Production

Introduction The United States relies on groundwater for roughly 25% of its fresh water.1 This groundwater is found in porous, permeable rocks (aquifers) that often lie close to the Earth’s surface – the deepest freshwater aquifers are found more than 6,000 feet underground,2 but most are much...

Cover of Abandoned Wells

Introduction In 2017, there were one million active oil and gas wells in the United States.1 When a well reaches the end of its productive life, or if it fails to find economic quantities of oil or gas, the well operator is required by regulators to remove all equipment and plug the well to prevent...

Cover of Non-Fuel Products of Oil and Gas

Introduction Oil and natural gas are complex mixtures of chemicals. Oil refineries and gas processing plants extract the organic compounds that make the best fuels for transportation, heating, and electricity generation: gasoline, jet fuel, diesel fuel, heating oil, and methane. Other chemicals...

Cover of Mitigating and Regulating Methane Emissions

Introduction Methane is the main component of almost all natural gas, and gas delivered to end-users is purified to 95-98% methane.1 There are three main sources of methane emissions from the oil and gas industry: When a well is being drilled, cleaned out, or hydraulically fractured. As the fluids...

Cover of Geoscientists in Petroleum and the Environment

Introduction Geoscience – the study of the Earth – underpins our understanding of the many intersections between petroleum and the environment, from the search for resources to the study of air pollutants. Without the work of geoscientists, we would have neither the energy system nor the...

Cover of What Determines the Location of a Well

Introduction Oil- and gas-rich rocks are only found in certain parts of the United States, so most of the country has no oil or gas wells. Where oil and gas production is commercially viable, many factors determine the exact location of each well, including leasing, permitting, competing land uses...

Cover of Spills in Oil and Natural Gas Fields

Introduction Oilfield spills can harm wildlife and pose a risk to human health if they reach fresh water sources or contaminate soil or air. The enormous size of the oil and gas industry and the huge volumes of oil and produced water that are handled, stored, and transported result in thousands of...

Cover of The Pinedale Gas Field, Wyoming

Introduction The Pinedale field is the sixth-largest gas field in the United States.1 The core development area covers about 70 square miles in a sparsely populated area of southwest Wyoming, 70-100 miles north of Rock Springs.2 In 2015, the Pinedale field produced 4 million barrels of gas...

Cover of Health and Safety in Oil and Gas Extraction

Introduction Hundreds of thousands of people work in oil and gas extraction in the United States;1 ensuring their health and safety is a major concern for employers, regulators, trade associations, industry groups, and local communities. Work in this industry involves physical labor, 24/7...

Cover of Petroleum and the Environment - an Introduction

Introduction When oil and gas were first extracted and used on an industrial scale in the 19th century, they provided significant advantages over existing fuels: they were cleaner, easier to transport, and more versatile than coal and biomass (wood, waste, and whale oil). Diesel and gasoline...

Cover of Oil Refining and Gas Processing

Introduction Crude oil and natural gas are complex chemical mixtures that are generally unsuitable for direct use. Oil refining and gas processing turn these mixtures into a wide range of fuels and other products while removing low-value and polluting components. Refining and processing have both...

Cover of Land Use in the Oil and Gas Industry

Introduction All energy production requires land. Reducing the land-use “footprint” of the energy industry is an important part of limiting environmental impacts while meeting our energy needs. Advanced exploration technologies such as 3D seismic imaging, and drilling technologies such as...

Cover of Water Sources for Hydraulic Fracturing

Hydraulic Fracturing and Water Demand Hydraulically fracturing a modern well can require millions of gallons of water for the initial fracturing process. This is a potential problem in arid regions with competing demands for fresh water (i.e. high water stress), such as Colorado and West Texas (see...

Cover of Oil and Gas in the U.S. Arctic

Introduction The Arctic hosts large oil and natural gas resources both onshore and offshore.1 However, the harsh climate, extreme weather, remote locations, and limited infrastructure make exploration and production expensive and sometimes hazardous. In recent decades, decreased summer sea ice has...

Cover of Transportation of Oil, Gas, and Refined Products

Introduction The U.S. has millions of miles of oil and gas pipelines, thousands of rail cars, vessels, and barges, and about 100,000 tanker trucks that move oil and gas from wells to processing facilities or refineries, and finally to consumers. The U.S. also imports and exports large volumes of...

Screenshot of the USEITI case studies showing the North Slope Borough case study highlighted

The U.S. Department of the Interior's Office of Natural Resources Revenue, Information and Data Management has produced a series of case studies on extractive industries across the United States, focusing on coal, copper, gold, iron, natural gas, and oil.

Cover of U.S. Regulation of Oil and Gas Operations

Overview Regulation of oil and gas operations has existed in various forms for over 100 years.1 Regulation has several objectives: protecting the environment (including air and water quality), protecting cultural resources, protecting workers’ and the public’s health and safety, and reducing wasted...

Screenshot of the USEITI case studies showing the Kern County case study highlighted

The U.S. Department of the Interior's Office of Natural Resources Revenue, Information and Data Management has produced a series of case studies on extractive industries across the United States, focusing on coal, copper, gold, iron, natural gas, and oil.

Cover of Using Produced Water

Opportunities and Concerns in Using Produced Water Produced water is natural groundwater that is extracted along with oil and gas. It is commonly salty and mixed with oil residues,1 so it must be either disposed of or treated and reused. About 2.5 billion gallons of produced water are extracted...

Cover of Methane Emissions in the Oil and Gas Industry

Introduction Methane is the main component of natural gas, a cheap, abundant, and versatile source of energy that produces less carbon dioxide than other fossil fuels when burned. However, methane itself is a more potent greenhouse gas than carbon dioxide. Methane leaks from wells, pipelines, or...

Cover of Air Quality Impacts of Oil and Gas

Introduction All widely used combustible fuels emit harmful (toxic or ozone-forming) gases and particles when burned to provide energy. These air pollutants can have a wide array of public health impacts, such as increasing the rate of certain cardiovascular (heart) and pulmonary (lung) diseases,...

Cover of AGI Case Study 2018-001-Geologic Mapping and the Trans-Alaska Pipeline

Overview The 800-mile-long Trans-Alaska Pipeline, which starts at Prudhoe Bay on Alaska’s North Slope, can carry 2 million barrels of oil per day south to the port of Valdez for export, equal to roughly 10% of the daily consumption in the United States in 20171. The pipeline crosses the Denali...

Cover of Subsurface Data in the Oil and Gas Industry

Introduction Drilling for oil and gas is expensive. A single well generally costs $5-8 million onshore and $100-200 million or more in deep water.1 To maximize the chances of drilling a productive well, oil and gas companies collect and study large amounts of information about the Earth’s...

Cover of Offshore Oil and Gas

Introduction Many of the world’s oil and gas resources lie beneath the oceans. Advances in exploration, drilling, and production technologies allow production in water more than 10,000 feet deep and more than 100 miles offshore. Major spills are rare but damage sensitive ocean and coastal...

Screenshot of the USEITI case studies showing the DeSoto Parish case study highlighted

The U.S. Department of the Interior's Office of Natural Resources Revenue, Information and Data Management has produced a series of case studies on extractive industries across the United States, focusing on coal, copper, gold, iron, natural gas, and oil.

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