Ask Difference

Oil vs. Gas — What's the Difference?

Edited by Tayyaba Rehman — By Fiza Rafique — Updated on May 14, 2024
Oil and gas are both fossil fuels used as primary energy sources, but oil is generally used in liquid form for fuels and manufacturing, while gas, typically found as natural gas, is used for heating, electricity, and industrial processes.
Oil vs. Gas — What's the Difference?

Difference Between Oil and Gas

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Key Differences

Oil, also known as crude oil or petroleum, is a viscous liquid composed of hydrocarbons and other organic materials, extracted from the Earth and refined into various products such as gasoline, diesel, and jet fuel. It is also a key raw material for making plastics and other chemicals. Gas, primarily in the form of natural gas, consists mostly of methane and is used for heating, cooking, and generating electricity, as well as a feedstock for producing chemicals and fertilizers.
The extraction processes for oil and gas can vary: oil is pumped from underground reservoirs, and while gas is often found in conjunction with oil, it can also be extracted from gas-only fields and increasingly through methods like hydraulic fracturing in shale formations. Both oil and gas are critical to the global energy supply but are subject to market fluctuations and environmental concerns regarding their extraction and use.
From an environmental perspective, burning natural gas releases fewer pollutants and greenhouse gases compared to oil, making it a relatively cleaner fossil fuel option. However, concerns about methane leakage during gas extraction and transportation can mitigate these benefits.
Economically, both oil and gas industries are major contributors to national incomes, particularly in resource-rich countries. The pricing dynamics of oil and gas are influenced by global markets, geopolitical stability, and supply-demand balances, making them highly volatile.
In terms of usage, while both oil and gas serve as energy sources, their applications differ significantly. Oil is more prevalent in transportation and the production of consumer goods, whereas gas is dominant in residential and commercial heating and as a cleaner alternative for power generation.
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Comparison Chart

Composition

Hydrocarbons, primarily liquid
Mostly methane, gaseous

Main Uses

Transportation fuels, manufacturing
Heating, electricity, industrial processes

Environmental Impact

High CO2 emissions, pollution
Lower CO2 emissions, methane concerns

Extraction

Drilled from oil fields
Extracted from gas fields, often with oil

Economic Influence

Major commodity in global trade
Prices less volatile than oil, significant market share

Compare with Definitions

Oil

A liquid fossil fuel used mainly for combustion in engines and for manufacturing chemicals.
Oil refineries process crude oil to produce gasoline for cars.

Gas

Often found alongside oil in underground reservoirs.
Many oil wells also produce natural gas as a byproduct.

Oil

Extracted through drilling and pumping.
Offshore oil rigs drill deep into the ocean floor to extract oil.

Gas

Can be liquefied for easier transportation.
Liquefied natural gas (LNG) is transported in specialized tankers.

Oil

Serves as a base for many industrial products.
Plastics and synthetic materials are often derived from oil.

Gas

Gas is one of the four fundamental states of matter (the others being solid, liquid, and plasma).A pure gas may be made up of individual atoms (e.g. a noble gas like neon), elemental molecules made from one type of atom (e.g.

Oil

Subject to global price fluctuations.
Oil prices can swing dramatically based on OPEC decisions.

Gas

A substance or matter in a state in which it will expand freely to fill the whole of a container, having no fixed shape (unlike a solid) and no fixed volume (unlike a liquid)
Hot balls of gas that become stars
Poisonous gases

Oil

Transported globally via tankers and pipelines.
Crude oil is shipped worldwide from the Middle East to refineries.

Gas

Short for gasoline
We stopped for gas

Oil

An oil is any nonpolar chemical substance that is a viscous liquid at ambient temperatures and is both hydrophobic (does not mix with water, literally "water fearing") and lipophilic (mixes with other oils, literally "fat loving"). Oils have a high carbon and hydrogen content and are usually flammable and surface active.

Gas

An entertaining or amusing person or situation
The party would be a gas

Oil

A viscous liquid derived from petroleum, especially for use as a fuel or lubricant.

Gas

Kill or harm by exposure to gas
My son was gassed at Verdun

Oil

Oil paint
A portrait in oils

Gas

Talk excessively about trivial matters
I thought you'd never stop gassing

Oil

Information or facts
Young had some good oil on the Adelaide races

Gas

Fill the tank of (a motor vehicle) with petrol
After gassing up the car, he went into the restaurant

Oil

Lubricate, coat, or impregnate with oil
A lightly oiled baking tray

Gas

Very amusing or entertaining
Ruthie, that's gas—you're a gem

Oil

Supply with oil as fuel
Attempts should not be made to oil individual tanks too rapidly

Gas

The state of matter distinguished from the solid and liquid states by relatively low density and viscosity, relatively great expansion and contraction with changes in pressure and temperature, the ability to diffuse readily, and the spontaneous tendency to become distributed uniformly throughout any container.

Oil

Any of numerous mineral, vegetable, or synthetic substances or animal or vegetable fats that are generally slippery, combustible, viscous, liquid or liquefiable at room temperatures, soluble in various organic solvents such as ether but not in water, and used in a great variety of products, especially lubricants and fuels.

Gas

A substance in the gaseous state.

Oil

Petroleum.

Gas

Any of various mixtures of flammable gases used for lighting, heating, or cooking.

Oil

A petroleum derivative, such as a machine oil or lubricant.

Gas

Gasoline.

Oil

A protective or cosmetic liquid applied to the skin or hair.

Gas

The speed control of a gasoline engine. Used with the
Step on the gas.

Oil

Oil paint.

Gas

A gaseous asphyxiant, irritant, or poison.

Oil

A painting done in oil paint.

Gas

A gaseous anesthetic, such as nitrous oxide.

Oil

To lubricate, supply, cover, or polish with oil.

Gas

Flatulence.

Oil

Liquid fat.

Gas

Flatus.

Oil

Petroleum-based liquid used as fuel or lubricant.

Gas

(Slang) Idle or boastful talk.

Oil

Petroleum

Gas

(Slang) Someone or something exceptionally exciting or entertaining
The party was a gas.

Oil

(countable) An oil painting.

Gas

To treat chemically with gas.

Oil

(painting) Oil paint.
I prefer to paint in oil

Gas

To overcome, disable, or kill with poisonous fumes.

Oil

(attributive) Containing oil, conveying oil; intended for or capable of containing oil.
Oil barrel; oil pipe

Gas

To give off gas.

Oil

(transitive) To lubricate with oil.

Gas

(Slang) To talk excessively.

Oil

(transitive) To grease with oil for cooking.

Gas

Matter in an intermediate state between liquid and plasma that can be contained only if it is fully surrounded by a solid (or in a bubble of liquid, or held together by gravitational pull); it can condense into a liquid, or can (rarely) become a solid directly by deposition.
A lot of gas had escaped from the cylinder.

Oil

Any one of a great variety of unctuous combustible substances, more viscous than and not miscible with water; as, olive oil, whale oil, rock oil, etc. They are of animal, vegetable, or mineral origin and of varied composition, and they are variously used for food, for solvents, for anointing, lubrication, illumination, etc. By extension, any substance of an oily consistency; as, oil of vitriol.

Gas

(uncountable) A flammable gaseous hydrocarbon or hydrocarbon mixture used as a fuel, e.g. for cooking, heating, electricity generation or as a fuel in internal combustion engines in vehicles, especially natural gas.
Gas-fired power stations have largely replaced coal-burning ones.

Oil

To smear or rub over with oil; to lubricate with oil; to anoint with oil.

Gas

Poison gas.
The artillery fired gas shells into the enemy trenches.

Oil

A slippery or viscous liquid or liquefiable substance not miscible with water

Gas

A chemical element or compound in such a state.
The atmosphere is made up of a number of different gases.

Oil

Oil paint used by an artist

Gas

(countable) A hob on a gas cooker.
She turned the gas on, put the potatoes on, then lit the oven.

Oil

Any of a group of liquid edible fats that are obtained from plants

Gas

(uncountable) Methane or other waste gases trapped in one's belly as a result of the digestive process; flatus.
My tummy hurts so bad – I have gas.

Oil

Cover with oil, as if by rubbing;
Oil the wooden surface

Gas

(slang) A humorous or entertaining event or person.

Oil

Administer an oil or ointment to ; often in a religious ceremony of blessing

Gas

(slang) Frothy or boastful talk; chatter.

Gas

(baseball) A fastball.
The closer threw him nothing but gas.

Gas

Arterial or venous blood gas.

Gas

Marijuana, typically of high quality.

Gas

, a light derivative of petroleum used as fuel.

Gas

Ellipsis of gas pedal

Gas

An internal virtual currency used in Ethereum to pay for certain operations, such as blockchain transactions.
Gas fee

Gas

(transitive) To attack or kill with poison gas.
The Nazis gassed millions of Jews during the Holocaust.
He never fully recovered after he was gassed on the Western Front.

Gas

To talk in a boastful or vapid way; chatter.

Gas

To impose upon by talking boastfully.

Gas

(intransitive) To emit gas.
The battery cell was gassing.

Gas

(transitive) To impregnate with gas.
To gas lime with chlorine in the manufacture of bleaching powder

Gas

(transitive) To singe, as in a gas flame, so as to remove loose fibers.
To gas thread

Gas

(US) To give a vehicle more fuel in order to accelerate it.
The cops are coming. Gas it!

Gas

(US) To fill (a vehicle's fuel tank) with fuel.

Gas

(slang) comical, zany; fun, amusing.
Mary's new boyfriend is a gas man.
It was gas when the bird flew into the classroom.

Gas

An aëriform fluid; - a term used at first by chemists as synonymous with air, but since restricted to fluids supposed to be permanently elastic, as oxygen, hydrogen, etc., in distinction from vapors, as steam, which become liquid on a reduction of temperature. In present usage, since all of the supposed permanent gases have been liquified by cold and pressure, the term has resumed nearly its original signification, and is applied to any substance in the elastic or aëriform state.

Gas

A complex mixture of gases, of which the most important constituents are marsh gas, olefiant gas, and hydrogen, artificially produced by the destructive distillation of gas coal, or sometimes of peat, wood, oil, resin, etc. It gives a brilliant light when burned, and is the common gas used for illuminating purposes.

Gas

Same as gasoline; - a shortened form. Also, the accelerator pedal of a motor vehicle; used in the term " step on the gas".

Gas

The accelerator pedal of a motor vehicle; used in the term " step on the gas".

Gas

Same as natural gas.

Gas

An exceptionally enjoyable event; a good time; as, The concert was a gas.

Gas

To singe, as in a gas flame, so as to remove loose fibers; as, to gas thread.

Gas

To impregnate with gas; as, to gas lime with chlorine in the manufacture of bleaching powder.

Gas

To expose to a poisonous or noxious gas

Gas

The state of matter distinguished from the solid and liquid states by: relatively low density and viscosity; relatively great expansion and contraction with changes in pressure and temperature; the ability to diffuse readily; and the spontaneous tendency to become distributed uniformly throughout any container

Gas

A fluid in the gaseous state having neither independent shape nor volume and being able to expand indefinitely

Gas

A volatile flammable mixture of hydrocarbons (hexane and heptane and octane etc.) derived from petroleum; used mainly as a fuel in internal-combustion engines

Gas

A state of excessive gas in the alimentary canal

Gas

A pedal that controls the throttle valve;
He stepped on the gas

Gas

A fossil fuel in the gaseous state; used for cooking and heating homes

Gas

Attack with gas; subject to gas fumes;
The despot gassed the rebellious tribes

Gas

Show off

Gas

A gaseous fossil fuel primarily composed of methane, used for heating and power generation.
Natural gas is burned in residential furnaces for heat.

Gas

Considered a cleaner alternative to coal for electricity.
Gas-fired power plants emit fewer pollutants than coal plants.

Gas

Plays a key role in modern energy strategies.
Natural gas is central to discussions about transitional energy sources.

Common Curiosities

What role does each play in global energy consumption?

Both oil and gas are crucial to the global energy supply, with oil dominating the transportation sector and gas increasingly used in power generation and heating due to its cleaner-burning properties.

What technological advances affect the extraction and use of oil and gas?

Technologies like hydraulic fracturing (fracking) and horizontal drilling have significantly increased the accessibility of gas, while enhanced oil recovery techniques have improved oil extraction efficiency.

Why are oil prices more volatile than gas prices?

Oil prices are more influenced by international relations and global market dynamics, making them more susceptible to geopolitical events and supply disruptions.

Can oil and gas be extracted from the same reservoirs?

Yes, it's common to find gas in the same reservoirs as oil, often either mixed with oil or as a cap of gas above the oil.

What are the economic benefits of oil and gas production?

Oil and gas production can significantly boost national economies, providing jobs, energy security, and substantial revenues from exports.

How do the environmental impacts of oil and gas compare?

Gas burns cleaner than oil, emitting fewer pollutants and CO2, but concerns about methane leaks during extraction and transport can reduce its environmental benefits.

What are the strategic considerations for countries with oil and gas reserves?

Countries with substantial oil and gas reserves often use them as strategic assets in global politics and economics, impacting everything from national security to economic policies.

What are the primary uses of oil and gas?

Oil is primarily used for transportation fuels and as a raw material in chemicals, while gas is used for heating, cooking, and electricity generation.

How are oil and gas transported to consumer markets?

Oil is transported via large tanker ships and extensive pipeline networks, whereas gas is transported through pipelines or as liquefied natural gas (LNG) in tankers.

How might the transition to renewable energies impact oil and gas industries?

As renewable energy sources become more prevalent and technologies advance, the demand for oil and gas is expected to decline, potentially leading to shifts in how these resources are valued and traded.

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Author Spotlight

Written by
Fiza Rafique
Fiza Rafique is a skilled content writer at AskDifference.com, where she meticulously refines and enhances written pieces. Drawing from her vast editorial expertise, Fiza ensures clarity, accuracy, and precision in every article. Passionate about language, she continually seeks to elevate the quality of content for readers worldwide.
Tayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.

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