What products and uses does Petroleum have outside of Gasoline?
An April 2007 nationwide online survey revealed that 72 percent of the American public does not know that conventional plastic is made
from petroleum products, primarily oil. I assumed this was common knowledge. Apparently, it falls into the useless trivia category in most people’s brains. This reminds me of a video I was watching last week, the best of Jaywalking with Jay Leno on his final show. I didn’t see this one live, but it his jaywalking bit will be missed. If anything it should make you feel a lot smarter.
According to the US Energy Information Administration (EIA), this is a list of petroleum products and their share of total US petroleum consumption in 2013.
- Gasoline 46%
- Heating Oil / Diesel Fuel 20%
- Jet Fuel ( kerosene) 8%
- Propane / Propylene 7%
- NGL / LRG 6%
- Still Gas 4%
- Petrochemical Feedstocks 2%
- Petroleum Coke 2%
- Residual / Heavy Fuel Oil 2%
- Asphalt / Road Oil 2%
- Lubricants 1%
- Miscellaneous Products / Special Naphthas 0.4%
- Other Liquids 1%
- Aviation Gasoline 0.1%
- Waxes 0.04%
- Kerosene 0.02%
Here is a partial list of products made from petroleum?
There is a quite a large list of products made from petroleum. This list is constantly growing as new inventions are created. Here are some of the items which are made from petroleum.
|Solvents||Diesel fuel||Motor Oil||Bearing Grease|
|Ink||Floor Wax||Ballpoint Pens||Football Cleats|
|Upholstery||Sweaters (that explains the itchy sweater I have at home)||Boats||Insecticides|
|Bicycle Tires||Sports Car Bodies||Nail Polish||Fishing lures|
|Cassettes||Dishwasher parts||Tool Boxes||Shoe Polish|
|Motorcycle Helmet||Caulking||Petroleum Jelly||Transparent Tape|
|CD Player (do people still have these?)||Faucet Washers||Antiseptics||Clothesline|
|Curtains||Food Preservatives||Basketballs||Soap (that explains why soap doesn’t clean oil off your hands)|
|Percolators||Life Jackets||Rubbing Alcohol||Linings|
|Skis||TV Cabinets||Shag Rugs||Electrician’s Tape|
|Tool Racks||Car Battery Cases||Epoxy||Paint|
|Mops||Slacks||Insect Repellent||Oil Filters|
|Roofing||Toilet Seats||Fishing Rods||Lipstick|
|Denture Adhesive||Linoleum||Ice Cube Trays||Synthetic Rubber|
|Speakers||Plastic Wood||Electric Blankets||Glycerin|
|Tennis Rackets||Rubber Cement||Fishing Boots||Dice|
|Nylon Rope||Candles||Trash Bags||House Paint|
|Water Pipes||Hand Lotion||Roller Skates||Surf Boards|
|Shampoo||Wheels||Paint Rollers||Shower Curtains|
|Guitar Strings||Luggage||Aspirin||Safety Glasses|
|Antifreeze||Football Helmets||Awnings||Eyeglasses (I thought they were made from glass)|
|Combs||CD’s & DVD’s||Paint Brushes||Detergents|
|Anesthetics||Artificial Turf||Artificial limbs||Bandages|
|Dentures||Model Cars||Folding Doors||Hair Curlers|
|Cold cream||Movie film||Soft Contact lenses||Drinking Cups|
|Fan Belts||Car Enamel||Shaving Cream||Ammonia|
|Refrigerators||Golf Balls||Toothpaste (Yuck)||Gasoline|
While there will be a number of industries that benefit from lower oil prices, it isn’t usually an immediate effect. It takes time for input prices to filter through the corporate supply chain and the economy.
Given the large drop in oil prices, this should give you some ideas about areas that could benefit from these lower prices. Investing in the oil sector may require some caution. My thought is to be careful of catching a falling knife on oil prices. There will eventually be some great bargains in the oil and gas energy sector, but patience is always a virtue. Look elsewhere to related industries.
This is a supplement of the Inflation Monitor – January 2015
About Innovative Advisory Group: Innovative Advisory Group, LLC (IAG), an independent Registered Investment Advisory Firm, is bringing innovation to the wealth management industry by combining both traditional and alternative investments. IAG is unique in that they have an extensive understanding of the regulatory and financial considerations involved with self-directed IRAs and other retirement accounts. IAG advises clients on traditional investments, such as stocks, bonds, and mutual funds, as well as advising clients on alternative investments. IAG has a value-oriented approach to investing, which integrates specialized investment experience with extensive resources.
For more information, you can visit www.innovativewealth.com
About the author: Kirk Chisholm is a Wealth Manager and Principal at Innovative Advisory Group. His roles at IAG are co-chair of the Investment Committee and Head of the Traditional Investment Risk Management Group. His background and areas of focus are portfolio management and investment analysis in both the traditional and non-traditional investment markets. He received a BA degree in Economics from Trinity College in Hartford, CT.