I was asked today, why violence in Iraq, Iran, Syria, Libia & other middle eastern countries affect the price of oil and fuel in the United States as well as the rest of the world. This requires a mini crash course on the topics of Petroleum to start, but you will have vivid understanding of some of the issues surrounding our current economic position and our dependency on fuel.

What is Petroleum?
Petroleum or oil is a naturally occurring, flammable liquid found in the top layer of the Earth’s crust consisting of a complex mixture of an organic compound made entirely of hydrogen and carbon (also known as hydrocarbons) of various molecular mass, along with other organic compounds.
It is a non-renewable resource. While oil wells do restock themselves, this occurs at a very slow rate, and will eventually stop when the underground reservoir is completely exhausted.
The modern history of oil as a fuel for internal combustion began in 1846.

Sources of imported U.S. Oil
Everyday, the United States consumes nearly 21 million barrels of oil, one-quarter of all the world's production. That is more than any other country in the world. 58% of it is imported.
 
This is where it all comes from:

U.S. Oil Imports

Country

% imported

Canada
11

Mexico
11

Saudi Arabia
9

Venezuela
8

Nigeria

7

Iraq
4

25 other countries
8

Source: Infoplease
 
The U.S. has suffered oil shocks in the past. There were oil shocks in 1973, in 1979, in 1990 and in 2005. The causes are complicated, but relate to the Yom Kippur war and OPEC(1973) , the Iranian Revolution (1979), the First Gulf War (1990) and Hurricane Katrina (2005).
 
How we use Oil & Fuel
Though often associated with transportation, Petroleum when refined is used for much more!
Here are some examples:

• Plastic
• Asphalt
• Diesel fuel
• Fuel oils
• Gasoline
• Kerosene
• Liquefied petroleum gas
• Lubricating oils
• Paraffin wax
• Tar

 
Oil & Food
The low cost of food depends in large on cheap oil to operate farm machinery, to produce and transport pesticides, and to process, package and transport food. Our current food industry depends on oil to produce food at current levels. If forced to cut back, people might have to grow their own food to make up the shortfall. Studies of "food miles" in the U.S. often produce results in the 1,000- to 2,000-mile range.
 
Power & Energy
Oil produces a relatively small amount of power directly (in oil-fired power plants) but is vital for the continued operation of coal-fired plants, which produce most of the U.S. grid energy.
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