Petroleum or crude oil, also referred to as simply oil, is a naturally occurring yellowish-black liquid mixture of mainly hydrocarbons, and is found in geological formations. The name petroleum covers both naturally occurring unprocessed crude oil and petroleum products that consist of refined crude oil.
Diesel fuel, also called diesel oil, heavy oil (historically) or simply diesel, is any liquid fuel specifically designed for use in a diesel engine, a type of internal combustion engine in which fuel ignition takes place without a spark as a result of compression of the inlet air and then injection of fuel. Therefore, diesel fuel needs good compression ignition characteristics.
The Strategic Petroleum Reserve (SPR) is an emergency stockpile of petroleum maintained by the United States Department of Energy (DOE). It is the largest publicly known emergency supply in the world; its underground tanks in Louisiana and Texas have capacity for 714 million barrels (113,500,000 m3). The United States started the petroleum reserve in 1975 to mitigate future supply disruptions as part of the international Agreement on an International Energy Program, after oil supplies were interrupted during the 1973–1974 oil embargo.
An oil refinery or petroleum refinery is an industrial process plant where petroleum is transformed and refined into products such as gasoline (petrol), diesel fuel, asphalt base, fuel oils, heating oil, kerosene, liquefied petroleum gas and petroleum naphtha. Petrochemical feedstock like ethylene and propylene can also be produced directly by cracking crude oil without the need of using refined products of crude oil such as naphtha. The crude oil feedstock has typically been processed by an oil production plant. There is usually an oil depot at or near an oil refinery for the storage of incoming crude oil feedstock as well as bulk liquid products. In 2020, the total capacity of global refineries for crude oil was about 101.2 million barrels per day.
A refinery is a production facility composed of a group of chemical engineering unit processes and unit operations refining certain materials or converting raw material into products of value.
Fuel oil is any of various fractions obtained from the distillation of petroleum. Such oils include distillates and residues. Fuel oils include heavy fuel oil, marine fuel oil (MFO), furnace oil (FO), gas oil (gasoil), heating oils, diesel fuel, and others.
West Texas Intermediate (WTI) is a grade or mix of crude oil; the term is also used to refer to the spot price, the futures price, or assessed price for that oil. In colloquial usage, WTI usually refers to the WTI Crude Oil futures contract traded on the New York Mercantile Exchange (NYMEX). The WTI oil grade is also known as Texas light sweet. Oil produced from any location can be considered WTI if the oil meets the required qualifications. Spot and futures prices of WTI are used as a benchmark in oil pricing. This grade is described as light crude oil because of its low density and sweet because of its low sulfur content.
Petroleum geochemistry is a branch of geochemistry which deals specifically with petroleum and its origin, generation, and accumulation, as well as its extraction, refinement, and use. Petroleum, also known as crude oil, is a solid, liquid, and/or gaesous mix of hydrocarbons. These hydrocarbons are from the burial and metamorphosis of organic matter from millions of years ago; the organic matter is from marine animals, plants, and algae. Petroleum is extracted from the Earth, refined, and used as an energy source.
Crack spread is a term used on the oil industry and futures trading for the differential between the price of crude oil and petroleum products extracted from it. The spread approximates the profit margin that an oil refinery can expect to make by "cracking" the long-chain hydrocarbons of crude oil into useful shorter-chain petroleum products.
Light crude oil is liquid petroleum that has a low density and flows freely at room temperature. It has a low viscosity, low specific gravity and high API gravity due to the presence of a high proportion of light hydrocarbon fractions. It generally has a low wax content. Light crude oil receives a higher price than heavy crude oil on commodity markets because it produces a higher percentage of gasoline and diesel fuel when converted into products by an oil refinery.
Bonny Light oil was found at Oloibiri in the Niger delta region of Nigeria in 1956 for its commercial use. Due to its features of generating high profit, it is highly demanded by refiners. Bonny light oil has an API of 32.9, classified as light oil. It is regarded as more valuable than the other oils with lower API as more high-value products are produced in the refinement. However, in Nigeria, problems due to oil spillage caused by vandalism, affects both human and the ecosystem in detrimental ways. Some experiments on animals and soil are done to figure out those impacts on organisms.
Sour crude oil is crude oil containing a high amount of the impurity sulfur. It is common to find crude oil containing some impurities. When the total sulfur level in the oil is more than 0.5%, the oil is called "sour".
The price of oil, or the oil price, generally refers to the spot price of a barrel of benchmark crude oil—a reference price for buyers and sellers of crude oil such as West Texas Intermediate (WTI), Brent Crude, Dubai Crude, OPEC Reference Basket, Tapis crude, Bonny Light, Urals oil, Isthmus, and Western Canadian Select (WCS). Oil prices are determined by global supply and demand, rather than any country's domestic production level.
A benchmark crude or marker crude is a crude oil that serves as a reference price for buyers and sellers of crude oil. There are three primary benchmarks, West Texas Intermediate (WTI), Brent Blend, and Dubai Crude. Other well-known blends include the OPEC Reference Basket used by OPEC, Tapis Crude which is traded in Singapore, Western Canadian Select used in Canada, Bonny Light used in Nigeria, Urals oil used in Russia and Mexico's Isthmus. Energy Intelligence Group publishes a handbook which identified 195 major crude streams or blends in its 2011 edition.
Mazut is a low-quality heavy fuel oil, used in power plants and similar applications in Iran and some countries of the former Soviet Union. In the West, through fluid catalytic cracking, mazut is distilled into diesel and other light distillates. Mazut may be used for heating houses in some parts of the former USSR and in countries of the Far East that do not have the facilities to blend or break it down into more conventional petro-chemicals.
Natural-gas processing is a range of industrial processes designed to purify raw natural gas by removing contaminants such as solids, water, carbon dioxide (CO2), hydrogen sulfide (H2S), mercury and higher molecular mass hydrocarbons (condensate) to produce pipeline quality dry natural gas for pipeline distribution and final use. Some of the substances which contaminate natural gas have economic value and are further processed or sold. Hydrocarbons that are liquid at ambient conditions: temperature and pressure (i.e., pentane and heavier) are called natural-gas condensate (sometimes also called natural gasoline or simply condensate).
Tapis crude is a Malaysian crude oil used as a pricing benchmark in Singapore. Tapis is very light, with an API gravity of 43°-45°, and very sweet, with only about 0.04% sulfur. While it is not traded on a market like Brent Crude or West Texas Intermediate (WTI), it is often used as an oil marker or price referencing indicator for Asia and Australia.
Petroleum refining processes are the chemical engineering processes and other facilities used in petroleum refineries to transform crude oil into useful products such as liquefied petroleum gas (LPG), gasoline or petrol, kerosene, jet fuel, diesel oil and fuel oils.
Western Canadian Select (WCS) is a heavy sour blend of crude oil that is one of North America's largest heavy crude oil streams and, historically, its cheapest. It was established in December 2004 as a new heavy oil stream by EnCana, Canadian Natural Resources, Petro-Canada and Talisman Energy. It is composed mostly of bitumen blended with sweet synthetic and condensate diluents and 21 existing streams of both conventional and unconventional Alberta heavy crude oils at the large Husky Midstream General Partnership terminal in Hardisty, Alberta. Western Canadian Select—the benchmark for heavy, acidic crudes—is one of many petroleum products from the Western Canadian Sedimentary Basin oil sands. Calgary-based Husky Energy, now a subsidiary of Cenovus, had joined the initial four founders in 2015.
