Investors watch the price of oil and oil stocks, such as OAS stock, very carefully. The United States has vastly ramped up its oil production to meet the needs of its people. Oil is used for a variety of things, primarily to power transportation and in industry activity. Typical oil is currently sitting in the $40 price range compared to before, when oil was much scarcer and came in at prime prices. Now the United States produces oil in amounts comparable to Saudi Arabia and the shale oil produced in Canada, but the country was not always capable of keeping up with its vast demand. The top five uses for oil in the United States are for transportation, industry, powerplants, and for both residential and commercial use.
Oil is used for transportation more than any other purpose in the United States. Oil powers machines both big and small when it is turned into their fuel. Gasoline for cars uses over nine million barrels of oil a day. It is not just car fuel that oil is used for in the transportation sector. 1.7 million barrels of oil a day is used for jet fuel. In total, 68% of the oil the United States uses every day is for transportation. Considering that the US makes up over 20% of the world’s oil consumption, the amount used for fuel in the US is massive. The planet uses 98.8 million barrels of oil a day, for frame of reference. This makes up the single biggest part of US oil consumption per day by itself.
Both industry and powerplant uses are among the most expansive uses for oil in the US today. Industrial uses of oil are varied, and oil goes in all sorts of industrial products. Agriculture is industrial work, and oil is used to make fertilizers and pesticides used in the work. In terms of heavy industry, oil is used to make all kinds of plastics and the rubber in tires. The industry makes up 26% of oil consumption in the United States. This makes industry the second most common use of oil in the country.
Powerplants make another vital use of oil. Oil powerplants are one of several ways oil is used to make power. Oil is also used in heating for all types of buildings, and there is oil in air conditioning systems. In the United States, electric power makes up less than 1% of oil consumption, but this still places it as the fifth most common use of oil in the country. Both industry and powerplants use oil in significant quantities, and they both use enough that they rank among the five most common uses of oil in the USA.
Residential and commercial uses of oil also pack a punch in terms of US oil usage. Residential uses for oil account for 3% of United States oil usage, which ranks it the third most common use of oil in the United States. Things like lubricants and waxes are produced for domestic use as part of oil’s purpose. These products make their way into things like candles and Vaseline. Businesses use oil to make some products that are sold commercially. Goods like ink are made with oil, and pharmaceuticals often use oil in the process of making them. Pill capsules and aspirin both contain oil. The USA uses 2% of its oil consumption commercially. Both the residential and commercial uses of oil apart from heat are substantial and rank as the third and fourth most common types of oil use in the United States.
The United States now is among the world leaders in oil production, helping to meet its vast oil demand. The United States now produces 15 million barrels of oil a day. Compare this to countries like Saudi Arabia, which is among the old guard of oil producers. The kingdom produces 12 million barrels of oil a day, however the risk associated with the place due to issues like the war in Yemen raise the price of their oil dramatically. Next, compare the United States to a producer of shale oil like Canada. Canada produces 3.6 million barrels of oil a day, and 97% of their oil is found in oil sands. The United States makes 7.76 million out of 15 million barrels a day in shale. This means that the United States produces much more of the oil it needs for its local transportation, industry, power, residential, and commercial needs.