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Oil Factfile
Key points
 Oil is used for many things including generating electricity, heating and most transport.
 Burning oil gives off a large amount of CO2 and therefore adds greatly to climate change
 Global use of oil is increasing
Background information
Oil is formed from the remains of plants and animals that were crushed between layers of rock
and altered by the combined effects of pressure and heat over millions of years. This process
formed what we today call crude oil.
When crude oil is extracted from the ground, it is sent to a refinery where different parts of the
crude oil are separated into useable petroleum products.
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The word "petroleum" means "rock oil".
These petroleum products include fuels such as
 diesel,
 petrol,
 kerosene (jet fuel),
 as well as other products used as raw materials (a “feedstock”) to make
plastics, solvents, lubricants and asphalt for roads [1].
Current use in world and UK
World
 Oil provides a third of global primary energy consumption [2].
 Oil is mostly used for transport, and globally most transport uses oil..
 Much smaller amounts are used to generate electricity, for heating homes and other
buildings, as fuel in industry, and as a raw material in making products such as plastics
[3].
Like all fossil fuels, globally the use of oil is increasing. This is driven by increased use in
developing countries. Use in Europe is falling [2]. This is partly due to industry closing in
Europe and moving to the Far East (particularly China).
Britain
 In the UK, oil provides nearly 35% of our primary energy.
 Most of this oil is used in transport, and this meets the vast majority of our transport
energy demand.
 Smaller amounts are used for heating homes and other buildings, as fuel in industry, and
as a raw material in making products such as plastics.
 Only a very small amount is used in generating about 1% of our electricity [4,5], although
oil is often used to power back-up generators when connection to the electricity grid is
disrupted or unavailable.
Climate change and impact on nature
Climate Change
Globally, oil is the second largest source of CO2 emissions from fossil fuels, behind coal [16].
Greenhouse emissions per unit of energy for oil are
 about 250 grams of CO2e per kilowatt-hour for the direct emissions from burning, or
 300 gCO2e/kWh if indirect emissions, such as those for fuel extraction and production
are included.
These figures vary slightly depending on precisely which type of oil is being used [6].
Since oil power stations in the UK are a little over 30% efficient [5], greenhouse gas emissions
for electricity from oil are
about 900 grams of CO2 or equivalent greenhouse gas per kilowatt-hour (gCO2e/kWh)
For transport, emissions are about
 200-400 gCO2e per vehicle kilometre for a car,
 35 gCO2e per passenger kilometre for a coach,
 70 gCO2e per passenger kilometre for a train, and
 150 gCO2e per passenger kilometre for a plane [6].
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Other Environmental Impacts
As well as CO2, petroleum products give off other pollutants, including
 sulphur dioxide,
 nitrogen oxides,
 Volatile Organic Compounds (VOCs), and
 particulate matter,
when burnt these can damage the environment.
 sulphur dioxide causes acid rain, which is harmful to plants and to animals that live in
water.
 exploring and drilling for oil may disturb land and ocean habitats, and requires highly
visible oil rigs to be built.
 Oil spills, such as from a damaged ship, can do great harm to wildlife and ecosystems.
The amount of oil spilled from ships dropped in recent decades, partly because new
ships were required to have a "double-hull" lining to protect against spills. However, oil
extraction from increasingly hazardous environments, could increase the risk of spills.

Seeps (leaks) from wells and pipelines are another major, though less visible, source
of oil entering the environment [1]. For example, hundreds of oil spills happen every year
in the Niger Delta, making it one of the most polluted places on earth, damaging crops,
poisoning fish and polluting water supplies. [17]
Oil polluting the waters
of the Niger Delta
There is a great deal of evidence that Climate change is having an impact on biodiversity so
energy sources that produce a lot of greenhouse gases damage nature indirectly. [18]
Risks
 Exploration and extraction of oil can be hazardous and can require operating in extreme
environments.
 The risks include explosions and fires at production facilities, often out at sea (oil rigs)
and therefore hard to evacuate.
 Burning petroleum products also releases substances that are harmful to human health.
Sulphur dioxide worsens or causes respiratory illnesses and heart diseases, particularly
in children and the elderly.
 Nitrogen oxides and Volatile Organic Compounds contribute to ground-level ozone,
which irritates and damages the lungs.
 Particulate matter contributes to asthma and chronic bronchitis [1].
A comparative study places oil as one of the most dangerous energy sources, with around 36
deaths per terawatt-hour, compared with 4 for gas, 25 for coal, and 0.15 for wind [7,8].
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Oil leaks such as in the Niger Delta are a threat to the health and well-being of local people.
It has also been argued that many conflicts, such as the Iraq war, have been caused, at least in
part, by the desire to secure supplies of oil [15].
Cost now and in the future
The wholesale price of crude oil is about $100 per barrel or ~4 pence per kWh [12].
The cost of oil in future is difficult to predict as it depends on a range of geological,
technological, political and social issues.
Price is likely to increase as demand increases and the remaining oil supplies are harder to
extract. Projections for the cost by 2030 show a very wide range.
Figures of about $125 per barrel (5p per kWh) are given by several projections, but prices up to
$200 per barrel (8p per kWh) are possible [11].
If carbon taxes are increased in future this will also make oil far more expensive to use.
World and UK resource How much is there that we can use?
Oil is a finite resource – it will run out one day.
World
 The global proven reserves of oil are around 1700 billion barrels.
 Annual global consumption of oil was around 33 billion barrels in 2012, so supply could
last for about 50 years if oil continues to be used at the current rate [2].
 Consumption of oil is increasing and predicted to reach around 36 billion barrels per year
by 2020 [11].
However, technology is making it possible to extract harder to reach and more unconventional
sources of oil, such as Tar Sands oil and Shale oil.
This could considerably increase the reserves of oil, but the oil will come at a higher financial
and environmental cost.
 It takes more energy to extract this oil
 There is a big physical impact on the areas where these are extracted
It is now thought that, in the short term, “peak oil” - when oil production stops growing and starts
to decline - will be fixed more by the financial and environmental cost we are prepared to pay for
oil, rather than because the oil is running out [14].
Britain
 Most of the UK oil reserve has been used, with around 3.1 billion barrels remaining [2].
 Current annual oil consumption in the UK is around 500 million barrels.
 Annual production has gone down rapidly over recent years, with the UK becoming a net
importer of oil in 2005.
 Current production is around 350 million barrels [5], so production at this current level
can probably be sustained for less than a decade from current reserves.
 However, the UK’s oil reserve could increase if harder to reach oil is pursued, with up to
24 billion barrels of oil, or equivalent natural gas, thought to be possible to extract [12].
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Reliability/flexibility
 Oil is a very energy dense liquid - meaning it contains a lot of energy per unit of weight or
volume. Its energy density by weight is ~46 gigajoules per tonne, and by volume is ~36
gigajoules per m3 [13].
 Oil is an easily storable fuel.
 It is also quite easy to transport since it is very energy dense and its liquid state makes it
possible to move long distances by pipeline.
 It also makes it easy to move around in general and easy to use in engines.
Therefore, while stocks are available oil can reliably and flexibly provide heat, electricity and
especially transport.
Its combination of very high energy density and ease of use in engines makes it very useful as a
fuel for cars, lorries and other vehicles, giving them high performance and a long range between
refuelling.
Reproducing at least some of these characteristics using less polluting fuels is a key challenge if
we are to significantly reduce greenhouse gas emissions.
Wales
Milford Haven
Oil refinery
Less than 10% of electricity generated in Wales comes from oil.[19]
 Heating oil is used to heat 46% of remote rural homes in Wales.
 In November 2014, the Milford Haven oil refinery, which refined petrol, diesel, fuel oil, jet
fuel, LPG and propylene, was closed with the loss of hundreds of jobs. [20]
 Oil & gas are considered by the UK and Wales Governments to provide an important
contribution to UK energy supplies for years to come, acting as a 'bridge' in the transition
to lower carbon use [21]
References
[1] EIA (2013). Oil: Crude and Petroleum Products Explained. United States Energy Information
Administration. http://www.eia.gov/energyexplained/index.cfm?page=oil_use [accessed 15/1/2014].
[2] BP (2013). BP Statistical Review of World Energy June 2013. BP.
http://www.bp.com/en/global/corporate/about-bp/energy-economics/statistical-review-of-world-energy2013.html [accessed 8/1/2014].
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[3] IEA (undated). ETP 2012 data visualisation. International Energy Agency.
http://www.iea.org/etp/explore/ [accessed 8/1/2014].
[4] DECC (2013). Energy Flow Chart 2012. Department for Energy and Climate Change.
https://www.gov.uk/government/publications/energy-flow-chart-2012 [accessed 8/1/2014].
[5] DECC (2013). Statistics at DECC. Department for Energy and Climate Change.
https://www.gov.uk/government/organisations/department-of-energy-climate-change/about/statistics
[accessed 8/1/2014].
[6] DEFRA (2012). 2012 Guidelines to Defra / DECC's GHG Conversion Factors for Company Reporting.
Department for Environment, Farming and Rural Affairs.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/69554/pb13773-ghgconversion-factors-2012.pdf [accessed 8/1/2014].
[7] Starfelt, N. and Wikdahl, C (undated). Economic Analysis of Various Options of Electricity Generation Taking into Account Health and Environmental Effects.
http://manhaz.cyf.gov.pl/manhaz/strona_konferencja_EAE-2001/15%20-%20Polenp~1.pdf [accessed
14/1/2014].
[8] Unnamed (undated). Deaths per TWh for all energy sources. http://nextbigfuture.com/2008/03/deathsper-twh-for-all-energy-sources.html [accessed 14/1/2014].
[9] DECC (2013). DECC Fossil Fuel Price Projections. Department for Energy and Climate Change.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/212521/130718_deccfossil-fuel-price-projections.pdf [accessed 9/1/2014].
[10] BP (undated). Oil prices. BP. http://www.bp.com/en/global/corporate/about-bp/energyeconomics/statistical-review-of-world-energy-2013/review-by-energy-type/oil/oil-prices.html [accessed
9/1/2014].
[11] WEC (2013). World Energy Resources 2013 Survey: Summary. World Energy Council.
http://www.worldenergy.org/wp-content/uploads/2013/10/WEC_Resources_summary-final.pdf [accessed
9/1/2014].
[12] Unnamed (2013). 'Worrying' decline in oil and gas production. BBC. http://www.bbc.co.uk/news/ukscotland-scotland-business-23771338 [accessed 15/1/2014].
[13] http://en.wikipedia.org/wiki/Energy_density
[14] Klare, M. T. (2014). Peak Oil Is Dead. Long Live Peak Oil! The Nation.
http://www.thenation.com/article/177859/peak-oil-dead-long-live-peak-oil [accessed 16/1/2014].
[15] Chomsky, N. (2008). It's the Oil, stupid! Khaleej Times.
http://www.chomsky.info/articles/20080708.htm [accessed 8/1/2014].
[16] Sato, M. and Hansen, J. (undated). Updating the Climate Science. What Path is the Real World
Following? Columbia University Earth Institute. http://www.columbia.edu/~mhs119/ [accessed 8/1/2014].
[17] http://newint.org/blog/2015/01/13/shell-ogoniland-oil/
[18] http://jncc.defra.gov.uk/page-5145
http://jncc.defra.gov.uk/PDF/Pub10_Bio_&_CC_IACCF_2010_Web.pdf
2014 [accessed 28.1.15]
[19] Welsh Government: Energy Wales: A Low carbon Transition (March 2012)
[20] Guardian 5.10.14 http://www.theguardian.com/uk-news/2014/nov/05/milford-haven-oil-refinery-dealcollapses-jobs
[21] DECC 16.12.13
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/273997/DECC_SEA_Envir
onmental_Report.pdf
– background information for Energy Trumps cards. Full resource available as free download at
http://learning.cat.org.uk/en/resources
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