While most fossil fuels in the United States are burned, or combusted, to produce heat and power, EIA estimates that the equivalent of about 5.5 quadrillion British thermal units of fossil fuels were consumed for non-combustion purposes in the United States in 2017. Over the past decade, non-combustion consumption of fossil fuels has typically accounted for about 7% of total fossil fuel consumption and about 6% of total energy consumption in the United States.
Fossil fuels can be consumed, but not combusted, when they are used directly as construction materials, chemical feedstocks, lubricants, solvents, waxes, and other products. Common examples include petroleum products used in plastics, natural gas used in fertilizers, and coal tars used in skin treatment products. In 2017, about 13% of total petroleum products consumed were for non-combustion use. Natural gas non-combustion use accounted for about 3% of total natural gas, while coal was less than 1%.
In 2017, carbon dioxide (CO2) emissions would have been 196 million metric tons (about 4%) higher if non-combustion fuel use would have been combusted. Estimation of fossil fuels for non-combustion consumption is essential to calculate total U.S. carbon dioxide emissions. In the non-combustion use of these fuels, some (but not all) of the carbon is sequestered and not included in the fuel consumption values for emissions calculations.
Source: U.S. Energy Information Administration, Monthly Energy Review
Petroleum products account for about 86% of non-combustion consumption. Hydrocarbon gas liquids (HGL) such as ethane, ethylene, butane, butylene, isobutane, isobutylene, propylene, and natural gasoline and petrochemical feedstocks such as naphthas are important components for making plastics. HGL are used as intermediate products, while petrochemical feedstocks are used directly at chemical plants. Other petrochemical feedstocks are used to make synthetic fabrics, such as Kevlar, synthetic rubbers, detergents, and other chemical products.
Many other petroleum products are consumed for non-combustion uses other than plastics. Asphalt and road oils are used for roofing and paving construction. Lubricants, which include motor oil and greases, are used in vehicles, machinery, and various industrial processes. Petroleum coke is used as a chemical catalyst, while special naphthas are used in petroleum-based paints. Other petroleum products include distillate and residual fuel oils used as chemical feedstocks as well as polishes and waxes.
Relatively small amounts of natural gas are consumed for non-combustion use in the industrial sector. Natural gas is used as feedstock to make nitrogenous fertilizers and a range of chemical products including ammonia, hydrogen, and methanol.
Only small amounts of coal are used for non-combustion purposes in the industrial sector. Among the byproducts of the process to produce metallurgical coke are coal tars, which are rich in aromatic hydrocarbons, such as benzene, and are used as feedstocks in the chemical industry to make sealcoats for pavement, synthetic dyes, and paints. Some anti-dandruff shampoos and other medical skin care products contain coal tars.
Monthly and annual estimates of non-combustion consumption of fossil fuels are available in both physical units and energy units (British thermal units) in Tables 1.11a and 1.11b of EIA’s Monthly Energy Review.
Principal contributor: Mickey Francis
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According to the Nigeria National Petroleum Corporation (NNPC), Nigeria has the world’s 9th largest natural gas reserves (192 TCF of gas reserves). As at 2018, Nigeria exported over 1tcf of gas as Liquefied Natural Gas (LNG) to several countries. However domestically, we produce less than 4,000MW of power for over 180million people.
Think about this – imagine every Nigerian holding a 20W light bulb, that’s how much power we generate in Nigeria. In comparison, South Africa generates 42,000MW of power for a population of 57 million. We have the capacity to produce over 2 million Metric Tonnes of fertilizer (primarily urea) per year but we still import fertilizer. The Federal Government’s initiative to rejuvenate the agriculture sector is definitely the right thing to do for our economy, but fertilizer must be readily available to support the industry. Why do we import fertilizer when we have so much gas?
I could go on and on with these statistics, but you can see where I’m going with this so I won’t belabor the point. I will leave you with this mental image: imagine a man that lives with his family on the banks of a river that has fresh, clean water. Rather than collect and use this water directly from the river, he treks over 20km each day to buy bottled water from a company that collects the same water, bottles it and sells to him at a profit. This is the tragedy on Nigeria and it should make us all very sad.
Several indigenous companies like Nestoil were born and grown by the opportunities created by the local and international oil majors – NNPC and its subsidiaries – NGC, NAPIMS, Shell, Mobil, Agip, NDPHC. Nestoil’s main focus is the Engineering Procurement Construction and Commissioning of oil and gas pipelines and flowstations, essentially, infrastructure that supports upstream companies to produce and transport oil and natural gas, as well as and downstream companies to store and move their product. In our 28 years of doing business, we have built over 300km of pipelines of various sizes through the harshest terrain, ranging from dry land to seasonal swamp, to pure swamps, as well as some of the toughest and most volatile and hostile communities in Nigeria. I would be remiss if I do not use this opportunity to say a big thank you to those companies that gave us the opportunity to serve you. The over 2,000 direct staff and over 50,000 indirect staff we employ thank you. We are very grateful for the past opportunities given to us, and look forward to future opportunities that we can get.
Headline crude prices for the week beginning 15 July 2019 – Brent: US$66/b; WTI: US$59/b
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Unplanned crude oil production outages for the Organization of the Petroleum Exporting Countries (OPEC) averaged 2.5 million barrels per day (b/d) in the first half of 2019, the highest six-month average since the end of 2015. EIA estimates that in June, Iran alone accounted for more than 60% (1.7 million b/d) of all OPEC unplanned outages.
EIA differentiates among declines in production resulting from unplanned production outages, permanent losses of production capacity, and voluntary production cutbacks for OPEC members. Only the first of those categories is included in the historical unplanned production outage estimates that EIA publishes in its monthly Short-Term Energy Outlook (STEO).
Unplanned production outages include, but are not limited to, sanctions, armed conflicts, political disputes, labor actions, natural disasters, and unplanned maintenance. Unplanned outages can be short-lived or last for a number of years, but as long as the production capacity is not lost, EIA tracks these disruptions as outages rather than lost capacity.
Loss of production capacity includes natural capacity declines and declines resulting from irreparable damage that are unlikely to return within one year. This lost capacity cannot contribute to global supply without significant investment and lead time.
Voluntary cutbacks are associated with OPEC production agreements and only apply to OPEC members. Voluntary cutbacks count toward the country’s spare capacity but are not counted as unplanned production outages.
EIA defines spare crude oil production capacity—which only applies to OPEC members adhering to OPEC production agreements—as potential oil production that could be brought online within 30 days and sustained for at least 90 days, consistent with sound business practices. EIA does not include unplanned crude oil production outages in its assessment of spare production capacity.
As an example, EIA considers Iranian production declines that result from U.S. sanctions to be unplanned production outages, making Iran a significant contributor to the total OPEC unplanned crude oil production outages. During the fourth quarter of 2015, before the Joint Comprehensive Plan of Action became effective in January 2016, EIA estimated that an average 800,000 b/d of Iranian production was disrupted. In the first quarter of 2019, the first full quarter since U.S. sanctions on Iran were re-imposed in November 2018, Iranian disruptions averaged 1.2 million b/d.
Another long-term contributor to EIA’s estimate of OPEC unplanned crude oil production outages is the Partitioned Neutral Zone (PNZ) between Kuwait and Saudi Arabia. Production halted there in 2014 because of a political dispute between the two countries. EIA attributes half of the PNZ’s estimated 500,000 b/d production capacity to each country.
In the July 2019 STEO, EIA only considered about 100,000 b/d of Venezuela’s 130,000 b/d production decline from January to February as an unplanned crude oil production outage. After a series of ongoing nationwide power outages in Venezuela that began on March 7 and cut electricity to the country's oil-producing areas, EIA estimates that PdVSA, Venezuela’s national oil company, could not restart the disrupted production because of deteriorating infrastructure, and the previously disrupted 100,000 b/d became lost capacity.