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4.Non-Renewable Resources: Oil, Natural Gas, and LPG

There has been some headway in the last decade toward the use of renewable resources, such as solar and wind power, but Texas relies predominantly on non-renewable energy sources.

Oil Production and the Environment

More than a quarter of all the known U.S. oil deposits are in Texas.* Yet, less than one-third of the potential 190 billion barrels of oil beneath Texas have been produced. Some 129 billion barrels of oil remain, but much of that oil lies deep beneath the surface, making production difficult and expensive.*

Texas has the largest share of crude oil reserves in the nation. And the state's oil has provided a reliable source of tax revenue. From 1930 to 1997, Texas collected more than $19 trillion in oil taxes.* The state's oil reserves have also spawned a vast refining and petrochemical industry; two-thirds of America's petrochemical production occurs in Texas.*

Much of the oil produced in Texas comes from older wells with declining production. These so-called stripper wells produce ten barrels of oil or less per day, but they are important to the state's economy because they are so numerous. In 1992, 70 percent of the 192,292 oil wells in Texas were stripper wells.* The average daily production per Texas oil well is fewer than nine barrels. By contrast, the average oil well in Saudi Arabia produces about 6,000 barrels per day.*

Oil production in the state peaked in 1972 at 3.4 million barrels per day. By 1996 production had fallen by more than half, to 1.4 million barrels per day.* Cheaper foreign oil means less reliance on domestic production and less exploration of new wells in Texas.

The Railroad Commission of Texas must deal with thousands of abandoned oil wells. Unplugged and abandoned oil wells can cause serious groundwater contamination problems, particularly in areas with naturally occurring saline groundwater. Unplugged wells are vertical pipelines that can allow deep brine-water reservoirs to contaminate shallow freshwater aquifers. And in many areas around the state, rural residents have been forced to abandon oil wells or unlined saltwater disposal pits.* Plugging wells also prevents water from contaminating the oil and gas reservoirs. Surface water supplies also are threatened by unplugged wells.

Natural Gas and the Environment

FYI

Natural gas is mixture of hydrocarbon compounds and small quantities of various nonhydrocarbons existing in the gaseous phase or in solution with crude oil in natural underground reservoirs at reservoir conditions. It has a high heat value, burns without smoke, and provides raw material for making plastics, fertilizers, and detergents.

Today, some energy analysts are calling natural gas the "prince of the hydrocarbons."* The clean-burning properties of natural gas are causing consumption to increase dramatically. Natural gas can be used to power cars and trucks, to generate electricity, and to heat and cool our homes and work places. Since 1992 natural gas has accounted for 25 percent of total energy consumption in the United States.*

Texas consumed 3.9 trillion cubic feet of natural gas in 1999, more than any other state.* Texas produces about 6.6 trillion cubic feet of gas every year, which accounts for 25 percent of U.S. domestic gas production.* Similarly, the state has a quarter of domestic gas reserves totaling about 4.3 trillion cubic feet.*

The fuel can be used to power air conditioners and is gaining popularity in the transportation sector. Sixty-eight percent of the homes in Texas use natural gas. Compressed natural gas (CNG) and liquefied natural gas (LNG) burn cleaner than gasoline or coal. Liquefied natural gas offers a fuel alternative to vehicle fleet owners who must comply with Clean Air Act regulations. Natural gas is also being used by more utilities for power generation. Though natural gas burns cleaner than coal, in urban areas it still contributes to ozone formation through nitrogen oxides emissions and to global climate change through carbon dioxides.

Liquid Petroleum Gas and the Environment

Most consumers know liquid petroleum gas (LPG) as butane or propane. These liquids are removed from oil and gas during the refining process.. A flexible fuel, LPG can be used for everything from running residential water heaters to powering farm tractors. Propane is second only to natural gas in terms of heat content. It is considered an alternative fuel because it burns cleaner than coal or gasoline. One-third of the nation's propane is produced in Texas.

According to the National Propane Gas Association, propane is the nation's third largest engine fuel source and the most widely used for alternative transportation fuel. The Propane Association claims that propane-powered engines contribute less to the problems of acid rain, smog, and global warming than other fossil fuels because propane combustion produces less carbon monoxide, hydrocarbons, nitrogen oxide, and other toxins as compared to combustion of coal or oil. Moreover, LPG tanks can be stored above or below ground, and, because propane readily vaporizes, there is less risk of underground tanks causing groundwater and soil contamination. The costs of operating propane vehicles have also been shown to be lower than the costs of gasoline-powered vehicles.*

LPG, which is used as a chemical feedstock, is the leading petroleum product consumed in the state.Texans consumed approximately 12.2 billion gallons of LPG in 1996, most of which was used by the petrochemical industry for making plastics and fertilizers.* Millions of rural Texans rely on propane and butane for cooking and water heating.

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