Oil As A Source Of Energy

Oil can be refined into fuel.

Oil, also known as petroleum or crude, is a mineral extracted from the earth and refined into fuels such as kerosene, diesel, and gasoline. According to the U.S. Department of Energy, oil is the "lifeblood" of the U.S. economy, supplying the country with more than 40 percent of its total energy and 99 percent of the fuel used in its automobiles.

History

Oil first began to be widely used as a source of energy in the mid-19th century, when it was employed primarily as a method of producing heat. With the popularization of the automobile in the early 20th century, oil's use expanded, as its refined product, gasoline, was used to power the internal combustion engines of cars. It was later used to make jet fuel. According to the International Energy Agency, in 2009 the world consumed approximately 85 million barrels of oil per day, most in the form of transportation fuels. Although some oil is still burned for heat and electricity, it is less economically efficient in these areas than other energy sources, such as natural gas.

Significance

Because so much transportation is dependent upon oil, the mineral plays a critical part in the world economy. Spikes in the price of oil, such as those experienced in 2008, can cause inflation and reduce economic output and productivity. The need for countries to have reliable access to oil can influence political relationships, with oil-exporting countries such as Saudi Arabia and Venezuela using their resource as a bargaining chip. This reliance on oil as a source of energy has led to the rise of alternative fuels, such as biofuels, which are meant to offer a substitute to oil.

Dangers

According to the U.S. Department of Energy, the tail-pipe emissions from gasoline-burning automobiles is one of the leading sources of greenhouse gas emissions, which serve to exacerbate the effects of global climate change. In addition, oil drilling, when not properly supervised, can damage the environment, as can oil spills.

Misconceptions

The advent of biofuels has led to speculation that oil will soon be replaced as a source of energy. Currently, according to the International Energy Agency, biofuels make up fewer than 1 percent of the current fuel mix used to power automobiles. Although biofuels may become dominant at some point, this will likely not be for many years. There is also the misconception that the U.S., as well as other nations, will be able to become "energy independent" if they increase their own domestic drilling and production of biofuels. Although this may be true of some countries, according to the Energy Intelligence Group, the U.S. has no chance of becoming energy independent unless it dramatically expands its production of biofuels well beyond the levels currently planned or if its demand for oil were to drop sharply.

A Finite Resource

Oil is a finite resource. At some point, all of the oil available will have been extracted, meaning that those technologies that rely upon oil will have to be replaced or modified so that they can be powered by another source of energy.

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