Crude oil is the type of oil used to create fuel like gasoline, heating oil, and more

An overview of crude oil, including its constituent hydrocarbons and refinement outputs

The mixture is primarily composed of molecules of carbon and hydrogen atoms bonded into a variety of shapes and lengths, giving each different chemical properties, such as boiling points. Refining can remove elemental impurities—such as sulfur—after hydrocarbons are separated, ensuring the resulting products can be used effectively in other machines, such as car engines.

View the 45 gallons of refined products created from each 42-gallon barrel of crude oil

More than 85% is refined into fuels, such as gasoline and diesel, while about 10% is converted into raw materials for plastics, synthetic rubbers, and other essential products, such as lubricants. Because the majority of these products are less dense than the starting crude oil and additional inputs are introduced during the refining process, there is a processing gain of three gallons.

To use the various chemicals in crude oil, they must often be cracked—broken down into smaller molecules—to make their processing easier in everyday machines.

How crude oil is split across oil markets based on geographic origin

Brent, West Texas Intermediate, and Dubai are the three crude oil classes and differ in terms of typical refinery uses, density, sulfur content, and suitability for financial benchmarking. Brent, which originates in the North Sea, is traders' go-to benchmark, in part, because it is easily shipped and politically stable, and used to price most of the crude sold internationally.

A look at types of crude oil, distinguished by properties like heaviness and sweetness

API gravity is a unit that describes how heavy or light a crude oil sample is based on its density, with higher values indicating lighter, more valuable oil that requires less processing. The sweetness of crude oil refers to the amount of sulfur it contains, where sour crude oil requires more extensive treatment to remove the more abundant sulfur and sweeten it.

See where the 100 million barrels of crude oil the world consumes daily end up.

The separation of crude oil into petroleum products begins by boiling it in a distillation tower, where constituent hydrocarbons are separated into layers based on the temperatures at which they boil.

Despite the misconception that it comes from dinosaurs, crude oil forms when microorganisms, such as algae and plankton, are subjected to high pressure and high temperature while buried under layers of sediment.

The ins and outs of oil refining

The oil industry is broken up into the upstream, midstream, and downstream segments, and oil refining is part of the latter. “Downstream” refers to companies like Standard Oil that are converting crude oil into a finished product.

View a sample of objects surprisingly derived from crude oil, including chewing gum and lipstick

Crude oil processing produces a variety of fuels and the building blocks for plastics, but it also distills out the hydrocarbons used to make aspirin, Teflon, vinyl, crayons, candles, Tupperware, roofing shingles, asphalt pavement, hair dye, anesthetics, food-grade lubricants, polyester, synthetic rubber, and resins for items like dentures.

Demystifying the claim that crude oil is inorganically created and a renewable resource

The abiogenic petroleum theory holds that fossil fuels originate in Earth's mantle and are constantly replenished, rather than formed by microorganisms over millions of years. While inorganic chemical processes can produce simple hydrocarbons, the range of complex molecules found in crude oil suggests an origin from a diverse set of organisms. Isotope analyses of these molecules also support the model that they originated from living things that preferentially take up certain isotopes over others.

The recorded history of crude oil use dates back about 5,000 years, with the Babylonians using it to waterproof their boats and as mortar in the construction of structures.

The price of crude oil accounts for roughly half of the price displayed at the gas pump

Oil and natural gas from fracking is considered unconventional

This method forcibly extracts fossil fuels from tightly packed rocks, where they form from organic matter that has undergone extreme heat and pressure. Conventional drilling, on the other hand, waits for the oil and gas to escape from shale and accumulate in more porous and permeable rocks, such as limestone.

Understanding why the US can't use its own crude oil and depends on global markets

Before advancements in fracking technology made lighter shale oil readily available, US refineries had been built and optimized for decades to process heavier oil from other countries with high profitability. Despite being able to refine lighter oil, US oil companies can operate with better margins by exporting it to other nations whose refineries are optimized for it and importing heavier oil, for which the US has the infrastructure.

The US shipped nearly 4 billion barrels of oil abroad in 2024

More than half of the US’s oil is exported as the country produces mainly light, sweet crude but has many refineries that handle heavy, sour types.

The US exported more crude oil and petroleum products than it imported in 2025

In fact, the US has been exporting more oil and petroleum products than it imports since August 2021. Petroleum and petroleum product exports totaled about 10.7 million barrels per day, whereas imports totaled about 7.9 million barrels per day.

The story of the first commercial US oil well and why crude oil is measured in barrels

The 1859 oil discovery in Titusville, Pennsylvania, sparked a boom in oil exploration and production to meet the demand for kerosene lamp fuel. Because the 42-gallon barrel was a readily available container already in use for shipping fish, butter, wine, and other goods, it was adopted by the Petroleum Producers Association in 1872 and by both the US Geological Survey and the US Bureau of Mines in 1882.

How disruptions in oil markets can drive up the price of everyday goods

Most types of plastic are made from polymers derived from chemicals produced by the processing and refining of crude oil and natural gas. Spikes in the cost of either fossil fuel raise the cost of wrappings, tubs, and other plastic containers for products.

The world derives more of its energy from oil than from any other resource

Coal and gas are second and third, respectively, in terms of where the bulk of the world’s energy consumption stems from. These interactive charts can help you visualize where the world sources the most of its energy.

Explore a timeline of US dependence on crude oil from 1850 to 2023

Oil dependence began with the rise of oil as a commodity, followed by an era of geopolitical competition for the resource after World War II. The domestic fracking boom, which started around 2006, was driven by a desire to reduce the nation's dependence on international adversaries for energy.

Hear Steve Ballmer explain how US gas prices are affected by the global price of oil.

A guide to crude oil and natural gas extraction, from rig site preparation to land restoration

Requirements for traffic plans, access roads, and noise barriers vary by state and local laws, but once the rig site is prepared, the rig is assembled and digs a well that is then encased in steel and cement to protect groundwater reservoirs. After drilling and testing the extraction pipe, fracking fluid is injected into the rock to create cracks where crude oil resides, allowing it to be pumped out.

OPEC often intervenes to influence the price of oil

This guide explains how investing in oil works with in-depth explanations of each of the forces that control oil’s price. Oil is unique as a commodity in part because of OPEC’s role in regulating its price.

View a breakdown of worldwide oil production since 1900, mostly led by the US

When analyzing the production of crude oil, shale oil, oil sands, and condensates since the start of the 20th century, Saudi Arabia produced more crude oil only in 1977, from 1979 to 1981, and from 1991 to 2016. Nations such as Iraq and the United Arab Emirates produced much smaller quantities than both Saudi Arabia and the US.

Why have gas prices surged nearly 27% since the Iran war began?

Oil passing through the Strait of Hormuz makes up only about 7% of US crude imports. However, crude oil prices account for 51% of the cost of a gallon of gas in the US. US refiners pay the Brent crude futures price, even for domestic drilling.

Learn about unconventional ways to clean up crude oil, including using moss and chickens

Studies show that microorganisms in chicken manure can break down the hydrocarbons in crude oil without producing toxic by-products. Scientists have also explored avoiding the environmental risks of chemical dispersants and synthetic adsorbents by using human hair and peat moss to adsorb crude oil, which can be taken up by their cuticles and porous structures, respectively.

Oil markets are seeing higher costs and lower prices amid tech breakthroughs

Experts say oil demand has not yet reached its peak. Recent technological breakthroughs in the oil industry include advances in drilling and extraction, as well as subsurface technologies.

Trace the rise of oil: from early drilling to today’s global power

This animated map video vividly illustrates how petroleum shaped global politics and industry—from 18th-century uses and 19th-century drilling booms in North America to today’s OPEC strategies, shale revolution, and geopolitical oil influence.

Oil's legacy: fueling industrial growth and shaping imperial strategies

This episode of The Rest Is History podcast traces oil's pivotal role—from fueling industrial growth to steering imperial power. It also examines how access to oil shaped US politics, World War II, and sparked the creation of OPEC following the Suez Crisis.

About 10% of the world's crude oil and 32% of its natural gas is reached via fracking

Most of the world's shale oil resources—which are recoverable via fracking—are found in Russia, the US, China, Argentina, and Libya. The majority of equivalent shale gas resources are found in China, Argentina, Algeria, the US, Canada, and Mexico.

While major oil spills result from accidental pipeline ruptures or damage to transportation vessels or rigs, as much as half the oil that reaches coastlines has naturally leaked from the seafloor.

Jet fuel is expensive—which is one reason why it's tough to make an airline profitable

Jet fuel is typically a commercial airline's second-largest expense, second only to labor. Oil prices can be volatile—there have been recent significant increases in jet fuel prices given the 2026 Iran conflict, for instance.

Fracking has led to an increased global oil supply, contributing to lower oil prices

Fracking technology has significantly increased how much crude oil the US produces. As more countries adopt fracking technology, there could be an increased downward pressure on prices—although fracking has been widely criticized for its negative environmental impacts.

See a timeline that shows how volatile oil prices have been for decades, from OPEC-led embargoes in the 1970s and shale surges in the 2000s to the US flipping to become a net oil exporter in 2020.

Oil shocks, war, and the 1970s crisis that remade American energy and economics

The oil crises of the 1970s—fueled by Middle East conflict and OPEC's dominance—triggered inflation, price controls, and policy failure. But they also accelerated fracking, alternative energy, and the rise of free-market economics.

Fracking provides access to fossil fuel reserves locked in underground rock

Using a pressurized fluid mixture that is over 90% water, cracks are created in shale about 2 miles deep to release trapped oil and natural gas. The process uses an average of 3 to 6 million gallons of water per well, which can strain local water supplies.

Iran's 1979 revolution sparked a second oil shock—and reconfigured global energy markets.

Internal-combustion engines convert fuel into motion using controlled explosions

Gasoline engines mix fuel and air, compressing it and igniting it to create thousands of tiny explosions that push pistons up and down. This movement spins the crankshaft, which moves a vehicle's wheels.

Real estate is grouped into broad categories: residential, commercial and industrial

Other categories of real estate include raw land and “special use” real estate, which includes cemeteries. Technically speaking, real estate is considered an alternative investment.

The 1973 oil embargo by OPEC inspired advances in alternative energy technology

The shortages imposed by the Organization of Petroleum Exporting Countries (OPEC) created a global energy crisis and economic instability after the Arab-Israeli War. This led to investments in green technologies and improvements in automobile fuel efficiency and manufacturing.

Unless prices of fossil fuels rise significantly, their production is expected to slow

US oil and natural gas production skyrocketed from 2000 to 2020, largely due to advances in fracking. However, weak global energy prices have prevented this boom from translating into increased profits for fossil fuel companies.

China is the world’s largest importer of crude oil

China is pushing to reduce its reliance on US oil to limit geopolitical vulnerabilities. It’s rapidly becoming the world’s renewable energy superpower.

As of 2022, the US accounted for nearly one-fifth of global oil production

By 2022, the US had cemented its position as the world’s top oil producer with close to 18 million barrels per day. This eclipsed Saudi Arabia and Russia.

Artificial photosynthesis turns CO₂ into sustainable fuel

Carbon conversion focuses on a central perplexing question: if carbon dioxide is a leading driver of climate change, and fossil fuels are made of carbon-based molecules, can we devise a way to convert CO₂ into useful alternatives efficiently? This video breaks down a potential pathway using artificial photosynthesis, which uses sunlight to convert CO₂ into fuel.

As of 2024, the nation with the largest proven oil reserves is Venezuela

According to estimates derived from available geological and engineering data, the South American country possesses about 303 billion barrels of underground crude oil, followed by Saudi Arabia (267.2 billion) and Iran (208.6 billion). Many of the largest reserves are held by members of the Organization of the Petroleum Exporting Countries.

The US stores hundreds of millions of oil barrels in caves along the Texas-Louisiana coast

The US has a Strategic Petroleum Reserve that it taps into, releasing barrels into the economy, during times of emergency (think: major storms and wars) to try to stabilize markets.

Oil prices spiked when Russia invaded Ukraine in 2022

The price of a barrel of Brent crude experienced volatility in the early 2020s. This chart shows price spikes at the beginning of the pandemic and again when Russia invaded Ukraine.

Many plastic products are molded from melted pellets called nurdles, which are made from ethylene and propylene extracted from crude oil.

Data from 2020 suggests that fossil fuels are the most dangerous and least clean energy sources, causing the most deaths and emitting the most greenhouse gases per unit of energy generated.