Oil and the environment - U.S. Energy Information Administration (EIA) (2024)

How does oil affect the environment?

Crude oil is used to make the petroleum products we use to fuel airplanes, cars, and trucks; to heat homes; and to make products such as medicines and plastics. Although petroleum products make life easier, finding, producing, and moving crude oil may have negative effects on the environment. Technological advances in exploration, production, and transportation of oil and enforcement of safety and environmental laws and regulations help to avoid and reduce these effects.

Technology helps reduce the effects of drilling for and producing oil

Exploring and drilling for oil may disturb land and marine ecosystems. Seismic techniques used to explore for oil under the ocean floor may harm fish and marine mammals. Drilling an oil well on land often requires clearing an area of vegetation. However, technologies that significantly increase the efficiency of exploration and drilling activities also reduce effects on the environment. Satellites, global positioning systems, remote sensing devices, and 3-D and 4-D seismic technologies make it possible to discover oil reserves while drilling fewer exploratory wells. Mobile and smaller slimhole drilling rigs reduce the size of the area that drilling activities affect. The use of horizontal and directional drilling makes it possible for a single well to produce oil from a much larger area, which reduces the number of wells necessary to develop an oil resource.

Hydraulic fracturing

An oil production technique known as hydraulic fracturing, or fracking, is used to produce oil from shale and other tight geologic formations. This technique has allowed the United States to significantly increase domestic oil production and reduce U.S. oil imports. Hydraulic fracturing has some effects on the environment. Fracturing rock requires large amounts of water, and it uses potentially hazardous chemicals to release the oil from the rock strata. In some areas of the country, significant water use for oil production may affect the availability of water for other uses and can potentially affect aquatic habitats. Faulty well construction or improper handling may result in leaks and spills of fracturing fluids.

Hydraulic fracturing also produces large amounts of wastewater that may contain dissolved chemicals and other contaminants, which may require treatment before disposal or reuse. Because of the amount of water used and the complexity of treating some of the wastewater components, treatment and disposal are important and challenging issues. Wastewater is frequently disposed of by injection into deep wells, typically into saltwater aquifers. The injection of wastewater can cause earthquakes that may cause damage and are large enough to be felt.

Oil spills

Most oil spills are the result of accidents at oil wells or on the pipelines, ships, trains, and trucks that move oil from wells to refineries. Oil spills contaminate soil and water and may cause devastating explosions and fires. The federal government and industry are developing standards, regulations, and procedures to reduce the potential for accidents and spills and to clean up spills when they occur.

After the Exxon Valdez oil spill in Prince William Sound, Alaska, in 1989, the U.S. Congress passed the Oil Pollution Act of 1990, which requires all new oil tankers built for use between U.S. ports to have a full double hull. In 1992, the International Maritime Organization also established double-hull standards for new oil tankers in the International Convention for the Prevention of Pollution from Ships (MARPOL). The amount of oil spilled from ships dropped significantly during the 1990s partly because of these double-hull standards.

The Deep Horizon drilling rig explosion and oil spill in the Gulf of Mexico in 2010 prompted the U.S. government and the oil industry to review drilling technologies, procedures, and regulations to reduce the potential for similar accidents to occur. The U.S. government also replaced the Minerals Management Service (MMS), which administered offshore oil and natural gas leases, with the Bureau of Ocean Energy Management (BOEM) and the Bureau of Safety and Environmental Enforcement (BSEE) to provide more effective oversight and enforcement of environmental regulations for offshore energy development.

Oil and the environment - U.S. Energy Information Administration (EIA) (1)

Fish swimming through Rigs-to-Reefs project

Source: Courtesy of the Mississippi Department of Marine Resources

In response to several major accidents involving trains carrying crude oil, the U.S. Department of Transportation and the Federal Railroad Administration established new standards for railroad tank cars, braking controls, and speed restrictions to reduce the potential for railroad accidents and oil spills.

Restoring old well sites and creating artificial reefs

When oil and gas wells become uneconomic, they are required to be properly plugged and abandoned under applicable state and/or federal regulations. These procedures are designed to properly seal off subsurface rock formations and to remediate (restore) well sites to their original condition. Wells that are not properly plugged and abandoned can remain a possible hazard, potentially leaking fluids and gases and interfering with future surface development. The U.S. Environmental Protection Agency is working to address this issue.

Some old offshore oil rigs are tipped over and left on the sea floor in a Rigs-to-Reefs program. Within a year after a rig is toppled, barnacles, coral, sponges, clams, and other sea creatures cover the rig. These artificial reefs attract fish and other marine life, and they increase fish populations and recreational fishing and diving opportunities.

Last updated: August 1, 2022

Oil and the environment - U.S. Energy Information Administration (EIA) (2024)

FAQs

What is EIA in oil industry? ›

An environmental impact assessment (EIA) is a process for identifying, predicting, and evaluating the potential ecological impacts of a proposed project or activity.

Is EIA Gov credible? ›

EIA is the nation's premier source of energy information, and, by law, its data, analyses, and forecasts are independent of approval by any other officer or employee of the U.S. government.

What does the EIA do? ›

The Energy Information Administration (EIA) is the statistical agency of the Department of Energy. It provides policy-independent data, forecasts, and analyses to promote sound policy making, efficient markets, and public understanding regarding energy, and its interaction with the economy and the environment.

Is EIA a government website? ›

When EIA.gov launched on July 1, 1995, EIA became the first agency within the U.S. Department of Energy to venture onto the Internet.

How much oil does the US produce EIA? ›

Crude oil production in the United States, including condensate, averaged 12.9 million barrels per day (b/d) in 2023, breaking the previous U.S. and global record of 12.3 million b/d, set in 2019.

What three steps are used to refine oil EIA? ›

All refineries have three basic steps:
  • Separation.
  • Conversion.
  • Treatment.

What is the problem with EIA? ›

Issues particular to EIA

The scrutiny level of EIA Scoping & Screening stages by developers, national environmental organisations/charities and public/resident groups is high, so this leads to EIA not being focussed enough.

Why is EIA failing? ›

Lack of public participation in EIA processes

According to EIA experts, a common problem that is attributed to the failure of EIAs is the lack of public participation. This problem is chiefly because the project developers endeavor to avoid additional costs and delays involved with public participation.

Who funds the EIA? ›

The U.S. Energy Information Administration (EIA) receives funding through an annual appropriation from Congress.

What are 3 benefits of EIA? ›

The EIA process can assist in the selection of alternatives, including the selection of the best practicable and most environmentally friendly option. Environmentally unsound projects may be modified or screened out. The process should result in best practice and mitigation of potential adverse effects of a project.

What is the main goal of EIA? ›

The main aim of EIA is to conserve the environment and bring out the best combination of economic and environmental costs and benefits.

Who publishes US Energy Information Administration? ›

The U.S. Energy Information Administration (EIA) is a federal agency tasked with the collection, analysis and dissemination of energy information. EIA is a division of the U.S. Department of Energy. The agency's budget for fiscal year 2023 totaled $135 million.

Is the EIA trustworthy? ›

EIA is the Nation's premier source of energy information and, by law, its data, analyses, and forecasts are independent of approval by any other officer or employee of the United States Government.

Who runs EIA? ›

Joseph DeCarolis

Who controls EIA? ›

On 27 January 1994, the Union Ministry of Environment and Forests (MEF), Government of India, under the Environmental (Protection) Act 1986, promulgated an EIA notification making Environmental Clearance (EC) mandatory for expansion or modernisation of any activity or for setting up new projects listed in Schedule 1 of ...

What does the term EIA stand for? ›

EIA full form is Environmental Impact Assessment.

What does EIA crude oil stocks change mean? ›

The EIA Crude Oil stockpiles report is a weekly measure of the change in the number of barrels in stock of crude oil and its derivates, and it's released by the Energy Information Administration.

What is the difference between API and EIA crude inventory? ›

The American Petroleum Institute (API) and the U.S. Energy Information Administration (EIA) both provide weekly crude oil inventory reports. Oil inventory reports are indicators of the supply and demand for oil which impacts oil prices. The API is a trade association whereas the EIA is a governmental agency.

What does the acronym EIA stand for in business? ›

Enterprise information architecture (EIA) describes an enterprise's data structure and organization, including how employees collect, organize, and access information. An EIA can help improve business operations by streamlining a company's data management processes.

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