Crude Oil and Production Process
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This section provides a brief overview of the technology and production process. An
understanding of these issues is critical as it helps understand industry structure.
Crude oil is a liquid mixture of hydrocarbons – chemical compounds consisting roughly of six
parts of carbon and one of hydrogen, both of which are fuels; it generally also carries small
quantities of sulphur, salts, metals, oxygen and nitrogen. It was formed from organic remains
accumulated undersea and eventually trapped in sedimentary rocks; these rocks are where crude
oil exploration is concentrated. Generally the oil is compressed, and gushes out if a pipe is
pushed into an oil-bearing trap. But as it is extracted, the pressure diminishes, and it is often
artificially reinforced by injection of air or water into the reservoir to push up the oil.
Crude oil contains hydrocarbons that vary in their boiling point; refining is a process in which
crude oil is heated in a vacuum until it evaporates and then allowed to rise up a column. Different
hydrocarbons liquefy at different temperatures and can be collected at various heights in the
distillation column.
In the basic refinery process, crude is heated to 600ÂșC by injection of superheated steam and
pumped in at the bottom of a vertical distillation column. As the vapour rises up the column, it
cools. The column has trays at various heights with holes. As the vapour cools, fractions with
different boiling points liquefy, collect in the trays and are drained off; products with high boiling
points rise to the top, while products with low boiling points collect on lower trays. The principal
products, with their approximate boiling points, are petroleum gas (20ÂșC), naphtha (40ÂșC), petrol
(70ÂșC), kerosene and jet fuel (120ÂșC), diesel (200ÂșC), lubricant (300ÂșC), and furnace oil (370ÂșC);
solid petroleum coke collects at the bottom after the liquid fractions are removed.
The proportions in which these products come out vary to an extent with the crude; crudes are
classified as light or heavy according to the proportion of light products. But the balance of
demand and supply for the products is such that the prices of furnace oil are much lower than
those of light products such as petrol, kerosene and diesel oil. In August 2008, international
prices of residual fuel oil ranged from $2.29 to $2.48 a gallon; the corresponding range was
technologies are employed to crack, alter or recombine molecules and make lighter hydrocarbons
from residual fuel oil.
The principal products obtained from the primary refining and cracking processes are (see
Essay About Crude Oil And Boiling Point
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