Chapter 4 of a report on the energy industry in Texas. It looks at crude oil as an energy source, its history, and its many uses and products. The economic impact of the petroleum industry in Texas is described, the scale and scope of consumption, methods of production, refining, and availability. Also looks at costs and benefits, environmental implications, and risks. The government's position on the oil industry is discussed, and the regulatory agencies that oversee the industry. Also describes how other states and countries compare in petroleum production and use, and the outlook for the future of this energy sector in Texas.