Gas Myths Exposed

Where our Oil Comes From
Top Oil Producing Countries in the World
What affects the price of gasoline

With summer right around corner and the subsequent increase in gas prices, now is a good time to attack some myths that seem to make the rounds every year and gets everyone up in arms. Above are links for sites by the US Department of Energy that explain some things you may not know about oil production and gas prices.

Myth #1: We get most of our oil imports from the Middle East. We don't get most of our imports from the Middle East, as a percentage of imports, we get more than twice the oil from Canada (22.7% according from DOE import data for December 2009) than we do from Saudi Arabia(9.8% DOE estimate). In fact, the US is the worlds 3 largest oil producer behind Russia and Saudi Arabia, so you can dispel the myth of the US not producing large amounts of oil itself.

Myth #2: Company X only purchases Imported Crude/Gas and sells to Americans. This is a good myth that floats around with the xenophobic crowd. The reality is that there is no way to track this, Company X may import oil from Country Y, however they may refine the oil in the US, then ship to a third country for sale. Then just to muddy the waters further, Company Y ships the gasoline to a bulk terminal that they may not even own so it is being mixed with bulk gasoline from other refineries, where all the gas stations in a region purchase their gasoline from, the difference between BP Amoco to ExxonMobile to Joe's Gas Shack are the additives that are placed in the fuel as it is put into the tanker to be delivered. When you see those gas stations that say they only sell "American fuel" ask them if they guarantee the supply from well to your tank because that company would need to own the production field, a private pipeline, a private refinery and their own bulk terminal.

Myth #2: Gas is expensive due to environmental regulations. Yes there is cost associated with environmental regulations. But there are other pressing factors including federal and state excise taxes on gasoline, distance from a supplier, if there is anything that could create a supply issue (hurricane, earthquake, or if a refinery was damaged due to fire to name a few different things).

Myth #3: The US doesn't export any of the oil or gas it produces. The US does export oil and gas, sometimes it makes more sense logistically and financially to export oil and/or gas, then turn around and import it from somewhere else be it an Opec country, Northern Europe, Mexico, Canada, or some other oil producing nation.

Myth #4: Premium fuel is better for your vehicle. Not necessarily, octane refers to how much compression is needed before a fuel will combust with heated air. The higher the octane rating, the higher the pressure, the hotter the air. The best thing to do is look at your owner's manual and see what the preferred octane rating to be used with the engine is. Sometimes you may be told "regular unleaded" which for most of the country means an octane rating of 87, other times you may be instructed to use 89 or 92 octane. You can use higher octane fuel if you want, but it isn't going to give you better performance. However if you use a lower rated fuel you may experience knocking (a misfire in the cylinder) that is going to kill your mileage.