# Oil and Gas By [Pingu0x](https://paragraph.com/@pingu0x) · 2023-05-31 --- ### Daily Production Numbers of Top Producers * United States of America: 18 - 19 Million Barrels per day * Saudia Arabia 10 - 12 Million Barrels per day * Russia 11 - 12 Million Barrels per day * Decreased to 9.7 Million Barrels per day since Russian-Ukraine war _OPEC + OPEC+ Countries have coordinated to lower production per day by 2 Million barrels per day_ ### United States of America and Canada Relationship * Canadian Oil Exports * 90% is to the United States * 4.1% is to Europe * 3.9% is to China * Canada is a major supplier of crude oil to the United States, and a significant portion of the crude oil processed at U.S. refineries is imported from Canada ### Canada * Stats * Population: 35 Million People * Daily Oil Consumption: 2 - 2.5 Million Barrels per day * Daily Oil Production: 4 - 4.5 Million Barrels per day * Why canada produces so little oil? It’s not because of skills/technical * Oil producers under-produce * Canada could be the largest oil producer in the world if it wanted to * Produces 2x what it consumes * Supply is 2x demand well we don’t need to increase production * Canada Crude Oil * Heavy * High Viscosity * High sulfur content * More cost to refine * Canada has refineries to refine crude oil but ships most to U.S refineries * Travels by * Waterways * Rail Networks * US to Canad SHippign Routes * Canada Oil goes from here → US (ror refinement) → Overseas ### Oil and Gas is a Spectrum * formed through heat and compression over millions of years of dead life (fossil) * plants and animals die > fall to bottom of the ocean > decay (over time) > New Layers rock and sediment pile on top (over millions of years > fossils subject to heat and pressure (cooked) > different heat and pressure leavels leave different gas and oils * Shale is source rock for moist oil and gas * Conventional Development - Over years oil and gas rises into rock traps called cap-rocks/seals * These formations are what companies “tap” * Tap the well > Vertical wells going down > pressure sends oil/gas to surface * Advances of technology have allowed for mining of source rock * it is now economical to mine source rock * Horizontal drilling * Hydraulic Fracturing * Once well is drilled Hydraulic Fracturing takes places * Millions of gallons of water and sand * High pressure water pumps bores into and fractures rock * sand stays there to help keep cracks open ### Types of oil * “Unconventional” production: Oil Sands * Canada (mostly here) * Venezuela * United States * Sands mining * oiul sands close to surface usually strip mined * processed seperately so sand and rock seperate from oil * In Situ Production * _Most of the oil sand will be pulled this way_ * 2 wells 1 pumping steam, 1 other oil * heating oil and liquifying oil comes up to the surface ### Refinement and Transportation * After crude oil is produced it is refined and transported in various ways * **Refinement** * Gasoline * Diesel * Jet Fuel * Other Products * **Transportation** * Pipeline * Rail * Truck * Cargo Tankers * Spectrum of oils and gases they make are different and are suited for different products * refineries are concentrated around the gulf-coast and population centres (in USA) ### Natural Gas * Transported from well to processing facility * Methane is seperated from natural gas molecules like propane, butane * Transported and sold seperately after molecule seperation * Butane (lighters) * Propane (BBQ) * Methane (Gas stove tops) ### Prices * Supply Chain for petroleum products * Costs from High to low * Crude Oil makes up majority of the cost * Taxes * Refinement * Distribution * Marketing * Crude oil affects the price of petroleum products greatly * Oil prices are global, natural gas prices are regional * Global disruptions in one part of the world affects prices for oil worldwide * Natural gas fluctuates from region-to-region * Priced regionally as opposed to globally * reason is there is only one major method of transportation * pipelines * LNG (Liquiefied Natural Gas) * Supercoded NiG * Can be shipped on Tanker worldwide * More expensive * Liquification costs * Shipping costs ### Shale revolution * Biggest event in last 25 years since Iranian revolution * Allowed U.S to increase production of Natural Gas * Used same technology to increase Natural Gas production to increase oil production * Main sources * Permian Basin (West Texas / East New Mexico) * Bakken / Threeforks (West North Dakota) * Eagle ford (South Texas) * Cheap Natural Gas makes clean power transition possible in transitioning from Coal → Renewables ### Upstream/Midstream/Downstream * Upstream: Exploration and Production * Independent oil and gas firms: Anadarko, Apache, Chesapake * Oilfield services: Haliburton and Schulmberger * Midstream: Distribution * Kinder Morgan, Enbridge, Crude-by-rail * Downstream: Refining and Marketing * Oil: Valero, Marathon, Sunoco, Tesoro * Gas: Indpendent Midstream firms, delivery by utilities ### Integrated International Oil Companies (IOCs) * ExxonMobil * Chevron * Shell * BP ### Largest Oil Resources * Venezuela * 303.8B (17.5%) * Saudia Arabia * 297.5 B (17.2%) * Canada * 168.1 B (9.7%) * Iran * 157.8B (9.1%) * Iraq * 145 B (8.4%) * Russia * 107.8 B (6.2%) * Kuwait * 101.5 B (5.9%) * United Arab Emirates * 97.8 B (5.6%) * United States * 68.8 B (4.0%) * Libya * 48.4 B (2.8%) ### The largest oil and gas companies in the Canada are: 1. **Canadian Natural Resources Limited (CNRL):** This is one of the largest independent crude oil and natural gas producers in the world, with operations in Canada, the United Kingdom, and offshore West Africa. 2. **Suncor Energy:** This is a leading integrated energy company with operations in Canada, the United States, and internationally. 3. **Cenovus Energy:** This is an integrated oil and natural gas company with operations in Canada and the United States. 4. **Imperial Oil:** This is a leading Canadian oil and gas company with operations in Canada, the United States, and offshore in the Atlantic. 5. **Husky Energy:** This is a Canadian-based integrated energy company with operations in Canada, the United States, and internationally. 6. **Enbridge:** This is a leading energy infrastructure company with operations in Canada and the United States. It is involved in the transportation, distribution, and storage of crude oil and natural gas. 7. **TransCanada Corporation:** This is an energy infrastructure company with operations in Canada, the United States, and internationally. It is involved in the transportation, distribution, and storage of crude oil and natural gas. 8. **Canadian Pacific Railway (CPR):** This is a transportation company with operations in Canada and the United States. It is involved in the transport of crude oil, as well as other goods and commodities. 9. **Canadian National Railway (CN):** This is a transportation company with operations in Canada and the United States. It is involved in the transport of crude oil, as well as other goods and commodities. ### The largest oil and gas companies in the United States are: 1. **ExxonMobil:** This is a multinational oil and gas company with operations in more than 50 countries. It is one of the largest oil and gas companies in the world by revenue. 2. **Chevron:** This is a multinational energy company with operations in more than 180 countries. It is one of the largest oil and gas companies in the world by revenue. 3. **ConocoPhillips:** This is an international energy company with operations in more than 30 countries. It is one of the largest independent oil and natural gas exploration and production companies in the world. 4. **BP:** This is a multinational energy company with operations in more than 70 countries. It is one of the largest oil and gas companies in the world by revenue. 5. **Royal Dutch Shell:** This is a multinational energy company with operations in more than 70 countries. It is one of the largest oil and gas companies in the world by revenue. 6. **Anadarko Petroleum:** This is an independent oil and natural gas exploration and production company with operations in the United States, Africa, and the Middle East. 7. **Marathon Oil:** This is an independent oil and natural gas exploration and production company with operations in the United States, Canada, and internationally. 8. **Devon Energy:** This is an independent oil and natural gas exploration and production company with operations in the United States and Canada. 9. **EOG Resources:** This is an independent oil and natural gas exploration and production company with operations in the United States, Canada, and internationally. 10. Apache Corporation: This is an independent oil and natural gas exploration and production company with operations in the United States, Canada, and internationally. --- *Originally published on [Pingu0x](https://paragraph.com/@pingu0x/oil-and-gas)*