Oil & Gas

The oil and natural gas industry contributes tremendously to the U.S. economy as one of the nation’s largest employers and purchasers of goods. The industry also produces a vast amount of products essential to everyday living and provides an economical fuel source for transportation, agriculture and manufacturing needs. U.S. and global energy demand is rising signi cantly as worldwide population grows and quality of life imporves for people around the globe.

In fact, the International Energy Outlook projects “a 50 percent increase in world energy consumption between 2007 and 2035.”

Policies that encourage domestic oil and natural gas production are necessary to meet this increasing demand and drive economic growth here in the United States and abroad. These abundant resources create jobs, generate much-needed government revenue and provide reliable energy supplies to families and businesses.

Natural Gas

Natural gas is produced by the breakdown of organic materials deep underground. It can help meet the demand for cleaner energy in many sectors, including the growing demand for power generation.

The use of natural gas for electricity production has proven to be reliable and cost-competitive. New/efficient gas-fired power plants can be built in three years, and the cost of generating electricity from gas is often lower than other power generation options such as coal, wind and nuclear. Natural gas also has higher conversion efficiency than traditional fossil fuels: A modern cycle gas turbine has a conversion efficiency of approximately 60%, almost double that of a standard thermal power station.

 Natural gas is less carbon intensive than other fossil fuels, with 30% less carbon than oil and 60% less carbon than coal. And when used for power generation, natural gas emits up to 60% less CO2 than coal, and emissions of other waste products such as mercury, sulfur and nitrogen oxide are also significantly reduced. Over time, the potential deployment of new technologies like Carbon Capture and Storage (CCS) could continue to improve the environmental advantages of natural gas.

Thanks to these attributes, natural gas will continue to play an important role for a cleaner energy mix in North America, Europe and around the world.


The word petroleum means rock oil, or, oil from the earth. Petroleum originated from marine plants and animals that decayed over time under ocean silt, sand or

other materials. Millions of years, extreme pressure and heat transformed the material into petroleum.

In 1859 in Titusville, Pennsylvania, Col. Edwin Drake drilled the first oil well. The discovery at 69.5 feet in the Oil Creek formation was significant in that it demonstrated the practicality in drilling. The first commercial well in Oklahoma, the Nellie Johnstone No. 1, was drilled in Bartlesville in 1897 beneath Indian Territory soil.

Fossil fuels supply almost 95 percent of the world‘s energy, even though hydro-, nuclear- and geothermal energy use has tripled since 1970. According to American Petroleum Institute statistics, world proven oil reserves are estimated at well over 1 trillion barrels. In fact, for many years, on average, more oil has been discovered than has been used, so proven reserves today are the largest they have ever been.