Petroleum is the single largest source of energy used in the
United States. The nation uses two times more petroleum than either coal or natural gas
and four times more than nuclear power or renewable energy sources. Before petroleum can
be used it is sent to a refinery where it is physically, thermally, and chemically
separated into fractions and then converted into finished products. About 90 percent of
these products are fuels such as gasoline, aviation fuels, distillate and residual oil,
liquefied petroleum gas (LPG), coke, and kerosene. Refineries also produce non-fuel
products, including petrochemicals, asphalt, road oil, lubricants, solvents, and wax.
Petrochemicals (ethylene, propylene, benzene, and others) are shipped to chemical plants,
where they are used to manufacture chemicals and plastics. [DOE 1998]
The United States is the largest producer of refined petroleum products in the world,
with 25 percent of global production and 163 operating refineries. In 1997 refineries
supplied more than 6 billion barrels of finished products and employed about 65,000 people
[DOE 1998, DOC 1997]. U.S. refineries are also the largest energy
consumers in manufacturing and spend $5-$6 billion annually in pollution abatement costs [MECS 1994, DOE 1998]. The broad Standard
Industrial Classification (SIC) for refining is SIC 29; oil and gas exploration falls
under SIC 13.
Refinery shipments total about $160 billion annually.
Petroleum refining is the largest industrial user of energy.
Texas, Louisiana, California, Illinois, and Pennsylvania are the nation's top producers of
refinery products.
Distillation, thermal and catalytic cracking, and reforming and alkylation are the
workhorses of the industry.
Over 56% of petroleum refineries conduct energy-management activities.
