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Contents

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Glossary

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What extractive sectors do we have in the US?

Major US commodity sectors: royalties over time
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The U.S. is home to many different extractive resources, including fossil fuels such as oil, gas, and coal; renewal energy such as geothermal, solar, and wind; and mineral resources such as gold, copper, and iron.

Trends

Since 2005, extractive industries in the U.S. have been growing, particularly those working in crude oil and natural gas. Over this same time period, more of the energy used by people in the U.S. has come from sources inside the country. In 2013, 84% of energy used by people in the U.S. came from within the country, compared to the historic low point of 65% in 2005.[1]

Fossil Fuels

Fossil fuels are the main source of electricity in the U.S. as well as the primary fuel for our motor vehicles and the source of fuel that heats most of our homes. There are three main fossil fuels: oil, gas, and coal. Through natural processes over millions of years, plant and animal matter becomes energy resources in the form of fossil fuels. Because it takes these resources millions of years to form, they are not renewable sources of energy.

Oil forms in underground reservoirs on land and offshore over millions of years. Crude oil occurs naturally, while petroleum products come from processing crude oil and other liquids. Petroleum is a broad term that can mean both crude oil and petroleum products. In 2013, five states — Texas, North Dakota, California, Alaska, and Oklahoma — and the Federal Gulf of Mexico supplied more than 80% of the crude oil produced in the U.S. Although total U.S. crude oil production generally declined between 1985 and 2008, it has been increasing since 2008. More cost effective drilling technology has helped boost production, especially in North Dakota, Texas, and the offshore Gulf of Mexico.

Gas, often called natural gas, forms underground on land and offshore over thousands of years. There are two types of natural gas: “wet” and “dry.” Dry natural gas is mostly methane. Wet natural gas withdrawn from a well contains both liquid hydrocarbons, such as ethane and butane, and non-hydrocarbon gases. Wet natural gas is also called “natural gas liquids.” The wet gas production process separates liquids from gases near the site of the well or at a natural gas processing plant. It results in both dry gas and other valuable commodities. The U.S. produces more gas than any other country in the world.[1] Five states produce almost 66% of the total dry natural gas in the United States: Texas, Pennsylvania, Louisiana, Wyoming, and Oklahoma. [1] More information for natural gas can be found in: http://www.eia.gov/naturalgas/

Coal forms in the ground in coal seams or beds over millions of years. Miners extract coal from the ground through surface mining and underground mining. In 2013, the U.S. was the world’s second largest coal producer after China. In the U.S., coal is concentrated in three regions: the Appalachian region, the Interior region, and the Western region. The Western region produces more than half of U.S. coal, most of that from the Powder River basin in Wyoming.[1] [1] Energy Information Agency, coal production resource: http://www.eia.gov/Energyexplained/index.cfm?page=coal_where

Renewable Energy

Renewable energy includes geothermal, solar, wind, biomass, and hydropower sources, representing a growing source of environmentally sustainable energy to meet the country’s electricity needs. Renewable energy sources comprise 10% of total U.S. energy consumption.[1] [1] U.S. Energy Information Administration, Monthly Energy Review, Table 1.3 and 10.1 (May 2014), 2013 data.

Geothermal energy is produced by the earth’s heat that is captured as steam or hot water and converted into energy. Most geothermal resources are found along the boundaries of tectonic plates and manifest themselves as volcanoes, hot springs, or geysers. California produces more geothermal energy than any other state, accounting for over 75% of the country’s total geothermal output in 2013.[1] [1] U.S. Energy Information Administration, Today in Energy, Sept 8 2014. http://www.eia.gov/todayinenergy/detail.cfm?id=17871

Solar energy converts solar radiation into heat and electricity via photovoltaic panels or solar power plants that heat a fluid to produce steam for a generator. The solar industry has experienced rapid growth in the past decade due to increased awareness of its environmental benefits coupled with decreasing technology costs. California leads the production of solar energy, followed by Arizona and New Jersey.[1] [1] Bureau of Labor Statistics, Careers in Solar Power, http://www.bls.gov/green/solar_power/

Wind power takes advantage of the daily wind cycle (in which cool air over water rushes inland to replace rising warm air during the day) to power wind turbines. These turbines can be clustered together on wind farms to power entire electric grids. In 2013, wind power accounted for 4% of total U.S. energy production, with Texas and Iowa leading the way.[1] [1] U.S. Energy Information Administration, Renewable Wind. http://www.eia.gov/kids/energy.cfm?page=wind_home-basics

Hard rock minerals

Metals such as gold, silver, iron, copper, zinc, nickel, tin, and lead are mined from “hard rock” (igneous and metamorphic rocks) and so are called as a group “hard rock minerals.” This is in contrast to minerals that are mined from ”soft rock” (sedimentary rocks) such as coal. In 2013, metal production in the U.S. totaled $32 billion in value. Gold (32%), copper (29%), and iron (17%) accounted for most of this value.[1] [1] Dept. of the Interior, U.S. Geological Survey, Mineral Commodity Summaries 2014, pg. 7, http://minerals.usgs.gov/minerals/pubs/mcs/2014/mcs2014.pdf

Gold can be found in both loose materials and hard rocks. Once mined, gold is used to make electronics, jewelry, dental treatments, and other products. In 2013, the majority of U.S. gold came from Nevada (172,000 kilograms) and Alaska (30,600 kilograms).[1] [1] Dept. of the Interior, U.S. Geological Survey, Monthly Industry Survey: Gold, http://minerals.usgs.gov/minerals/pubs/commodity/gold/mis-201311_12-gold.pdf

Copper is found in hard rocks in the form of copper ore. Miners must extract copper ore from the rocks and concentrate the metal. Once produced, copper is used to conduct electricity and in building materials. In 2013, Arizona (648,000 metric tons) accounted for the most copper production out of U.S. states.[1] [1] Dept. of the Interior, U.S. Geological Survey, Monthly Industry Survey: Copper http://minerals.usgs.gov/minerals/pubs/commodity/copper/

Iron is found in underground rocks. Almost all iron is used to make steel, which in turn is used to make buildings, infrastructure, machines, and vehicles. In 2013, 99% of the iron ore shipped in the U.S. came from Minnesota and Michigan.[1] [1] Dept. of the Interior, U.S. Geological Survey, Mineral Commodity Summaries: Iron http://minerals.usgs.gov/minerals/pubs/commodity/iron_ore/mcs-2014-feore.pdf