Below, we outline what we use oil and natural gas for across society.
We identify some everyday uses of each, and also identify the sectors/industries and countries that might consume the most petroleum and natural gas.
Summary – What We Use Oil & Natural Gas For Across Society, & The Sectors & Countries Consume The Most
What We Use Oil For
One of the main uses for oil is in petroleum fuel products for transport and vehicles, with gasoline being one of the most consumed petroleum products in the US
However, we use oil for other things too, and we list those things in the guide below
What We Use Natural Gas For
Some of the main uses for natural gas are for electricity generation, and also for industrial uses, such as heating, combined heating and power systems, and as a feedstock (raw material) to produce various materials and products
However, we use natural gas for other things too, and we list those things in the guide below
The Prevalence Of Oil & Natural Gas In Our Everyday Lives
To illustrate the number of everyday things that use fossil fuels like oil, natural gas, or coal in some way, some reports indicate that we use fossil fuels in 96% of the things we use everyday.
Sectors That Use The Most Oil & Natural Gas – Worldwide
Transportation, and heating and energy, are the two sectors that use the most oil and gas on a global scale
Sectors That Use The Most Petroleum – United States
The transportation sector by far uses the most petroleum of all sectors in the US
Sectors That Use The Most Natural Gas – United States
Electric power consumes the most natural gas of all sectors in the US, followed closely by industrial
Countries That Consume The Most Petroleum
The US appears to consume the most petroleum, followed by China
Countries That Consume The Most Natural Gas
The US consumes the most total natural gas by a significant margin, followed by Russia
Per capita consumption by country may vary though
Projections For Petroleum Consumption In The Future – United States
Some reports project petroleum consumption to increase in the US in the future, at least up until the year 2050
Projections For Natural Gas Demand In The Future – Worldwide
Several reports also indicate that natural gas demand is also expected to increase in the future across several countries
Where Oil Comes From, & How It’s Processed
Oil comes from the raw material/raw resource called ‘crude oil’
Crude oil is formed underground over millions of years when pressure and heat compress different organic material (such as the remains of different organisms, plants, and more)
Unprocessed crude oil is extracted via oil drilling
After crude oil has been extracted, the by-products/components are then separated by refining and distillation.
These by-products of crude oil and other liquids can then be processed into different products and materials, which are used for different purposes
Some of the products that use crude oil by-products are referred to as ‘petroleum products’
Uses For Oil
Oil Used For Energy (& Fuel)
Oil is most commonly used for energy and fuel
The most common use of oil is in petroleum based fuels for transport and the propulsion of vehicles (like cars, trucks and planes)
Gasoline might be one of the most common petroleum fuel products
Oil can also be used for energy for the generation of electricity at oil fired power plants (where refined oil is used)
Oil may also be used for heating
Combustion might be the most common way oil is used for energy
The Overall Importance Of Oil As An Energy Source
Oil might be one of the most important energy sources
It can make up one of the largest shares of primary energy use in some countries, with the US being one example of this
According to eia.gov:
Petroleum has historically been the largest major energy source for total annual U.S. energy consumption.
Other Uses For Oil (Other Than Energy & Fuel)
Apart from fuel and energy, the refined by-products of crude oil are used for a range of everyday products and services
Examples of these these products and services may include:
– Asphalt and road oil
– Lubricants like oil and grease that are used in manufacturing, and also in agriculture, for farming equipment
– Plastics
The production of plastics begins with the distillation of crude oil in an oil refinery
– Clothing and textiles
Synthetic fibres can be petroleum based
– The petrochemical industry uses petroleum as a raw material (a feedstock) to make a range of other products
Such as chemicals, solvents, polyurethane, waxes, toiletries like shampoos, shaving cream, and soap, bandages, and many other intermediate and end-user goods
– Even some renewable energy equipment, like some solar panels and wind turbines, use oil
– Other products
ranken-energy.com has a partial list of 6000 items that are made in some way from petroleum
Most Consumed Petroleum Products In The US
Finished motor gasoline is the most consumed petroleum product in the US
From eia.gov, in 2021:
[Finished motor gasoline] is the most consumed petroleum product in the United States [and] was equal to about 44% of total U.S. petroleum consumption.
[This was followed by distillate fuel oil (diesel fuel and heating oil) at 20%, hydrocarbon gas liquids at 17%, and kerosene type jet fuel like jet fuel and aviation gasoline at 7%]
eia.gov has a full list of the most consumed petroleum product in the US in their report
Where Does Natural Gas Come From?
Natural gas is a fossil fuel.
It’s formed from decayed organic material transformed by high temperatures and pressures over millions of years into bubbles of methane gas.
It’s usually extracted for use via drilling and hydraulic fracturing.
Uses For Natural Gas
Main Uses For Natural Gas
One of the main uses for natural gas might be electricity generation (and thermal output) at steam turbines and gas turbines
This electricity/power is mostly used by other sectors (outside of the electricity generation sector)
The other main uses for natural gas are in the industrial sector
These industrial uses can include:
– Heating
Natural gas can be used as a source of heat in steel production for melting pig iron into steel
Also, boilers used in paper manufacturing can be gas or oil boilers
These are just a few examples
– Combined heating and power systems
– As feedstock (raw material)
To produce/manufacture various materials and products, such as chemicals, fertilizer, plastic, synthetic fibres, cosmetics and medicines, hydrogen, and as lease and plant fuel
We’ve written about the use of natural gas in the production of hydrogen for hydrogen fuel in a separate guide
The Overall Importance Of Natural Gas As An Energy Source
Along with oil (petroleum), natural gas currently makes up the largest share of primary energy use in the US
So, it’s fair to say it’s an important energy source in some countries
Other Uses For Natural Gas
Other general uses for natural gas might be:
– Heating
Both residentially and commercially, for space heating of buildings, and water heating
Some reports indicate that natural gas is used for heating in almost half of all homes in the US
– Cogeneration, and also trigeneration
Cogeneration is combined heat and power
Trigeneration is the combination of electricity, heating and cooling
– Refrigeration and cooling equipment (such as air conditioning)
– For transportation
As a fuel to operate compressors, and also as a vehicle fuel (such as CNG and LNG)
Although, natural gas as a fuel in transportation might only make up a small % share of all fuels compared to petroleum based fuel products like gasoline
The Utility Of Natural Gas As A Potential ‘Transitionary’ Energy Source Of The Future
Natural gas is an interesting energy source as it appears that some major countries like the US have already begun somewhat of a transition to using more natural gas, and less coal
It’s been labelled a ‘transitionary energy source’ by some groups as a result
Sectors That Use The Most Oil & Natural Gas – Worldwide
Transportation, and heating and energy, are the two sectors that use the most oil and gas on a global scale
From theconversation.com:
[The sectors with the highest] annual use of oil and gas worldwide [are]:
[Transportation in first at 45%]
[Heating & Energy was second at 42%]
[They are followed by ‘Other’ in third at 5%, Chemicals at 4%, and Plastics at 4%]
Sectors That Use The Most Petroleum – United States
The transportation sector by far uses the most petroleum of all sectors in the US
From eia.gov:
In 2017, petroleum consumption by sector and share of total consumption was:
[Transportation in first at 14.02 million barrels per day (b/d), which equates to a 71% share of the total consumption]
[Industrial was second at 4.76 million b/d for a 24% share]
[Residential was third at 0.52 million b/d and 3%, Commercial at 0.47 million b/d and 2%, and Electric power at 0.10 million b/d and 1%]
Sectors That Use The Most Natural Gas – United States
Electric power consumes the most natural gas of all sectors in the US, followed closely by industrial
The residential sector, and also the commercial sector follow behind them by a notable margin
From eia.gov:
[In 2021 in the United States, the sectors that consumed the most natural gas as a % share of total natural gas consumption were:]
[Electric power in first at 37%]
[Industrial in second at 33%]
[Third was residential at 15%, fourth was commercial at 11%, and fifth was transportation at 4%]
In their report, eia.gov also lists the five largest natural gas consuming States in the US.
Texas is currently the largest consumer of natural gas.
Countries That Consume The Most Petroleum
The US appears to consume the most petroleum, followed by China
From eia.gov:
In 2015, the countries that consumed the most petroleum were:
[United States was first at 20.5%]
[This was followed by China at 12.6%, Japan at 4.3%, India at 4.3%, and Russia at 3.7%]
Countries That Consume The Most Natural Gas
The US by far consumes the most natural gas, followed by Russia
According to world.bymap.org, the countries that consume the most natural gas (in total cubic metres consumed) are:
[United States consumes 767,600,000 thousand cubic metres]
[Russia consumes 467,500,000 thousand cubic metres]
[China consumes 238,600,000 thousand cubic metres]
[Iran consumes 206,900,000 thousand cubic metres]
[Japan, Canada, Saudi Arabia and Germany are behind Iran]
world.bymap.org has a full table and map, showing total consumption, as well as per capita consumption
What Are Projections For Petroleum Consumption In The Future? – United States
Petroleum consumption is projected to increase in the US by the year 2050
eia.gov indicates that:
[In the United States …] Total consumption levels of petroleum and other liquids are projected to be about 14% greater in 2050 than in 2021.
What Are Projections For Natural Gas Demand In The Future?
Several reports indicate that natural gas demand might only grow in the future in several countries
Some of the reasons for this might be that countries want:
– A cheap, high capacity energy source to meet their growing energy needs
– A ‘cleaner’ energy source that emits less greenhouse gases than coal or petroleum
environmentalscience.org indicates:
Natural gas is a growing industry
… consumption is growing every year and the EIA projects it will have doubled by 2040.
How Much Oil & Natural Gas Do We Have Left?
We put together these guides which provide more information on much of each resource we might have left:
How Much Oil Is Left In The World
How Much Natural Gas Is Left In The World
Sources
1. https://theconversation.com/the-world-of-plastics-in-numbers-100291
2. https://www.eia.gov/energyexplained/index.php?page=oil_use
3. https://blogs.scientificamerican.com/plugged-in/what-sectors-use-the-most-natural-gas/
4. http://world.bymap.org/NaturalGasConsumption.html
5. https://www.eia.gov/energyexplained/oil-and-petroleum-products/use-of-oil.php
6. https://www.biltmoreoil.com/5-common-uses-of-oil
7. https://www.capp.ca/oil/uses-for-oil/
8. https://www.ranken-energy.com/index.php/products-made-from-petroleum/
9. https://www.eia.gov/energyexplained/natural-gas/use-of-natural-gas.php
10. https://group.met.com/en/media/energy-insight/what-is-natural-gas-used-for
11. https://www.eia.gov/energyexplained/us-energy-facts/
12. https://www.environmentalscience.org/natural-gas
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