30-11-2012, 06:03 PM
OIL & GAS VALUE CHAIN ENERGY TRADING ( 2011-2013)
OIL & GAS VALUE CHAIN.ppt (Size: 6.47 MB / Downloads: 183)
Introduction
What are Crude Oil and Natural Gas?
Crude oil is is mixture of more than 500 organic chemicals, predominantly hydrocarbons that comes from reservoirs below the earth's surface. It is called crude oil because it must be processed or "refined" into useable products like gasoline.
Crude oil can be of wide variety and characteristic.
Crude oil is often called petroleum.
Natural Gas is a mixture of lighter hydrocarbons like methane , ethane propane etc, it is a gas or vapour that is stored in reservoirs below the ground.
Classification of Crude Oil
Based on API Gravity Crude Oil can be classified as :
Light Crude.
Medium Crude.
Heavy Crude.
The crude oils are also classified based on chemical nature:
Parainic .
Asphaltic.
Intermediate Base.
Napthenic Base.
PETROLEUM PRODUCTS
Cuts, Fractions and Carbon Numbers
Crude oil is a mixture of over 500 components. It has a boiling range of around 40-600 C. Each product from Crude oil is also mixture of several components (hydrocarbons). The hydrocarbons range from C1 to C65 in terms of carbon numbers.
Product of a particular boiling range taken out of crude is defined as cut or fractions.
The products are identified as cuts from crude of certain boiling ranges and carbon numbers.
What is OPEC and does it really control world oil prices?
The organization was founded in 1960 by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. Its membership is limited to "any other country with a substantial net export of crude petroleum, which has fundamentally similar interests to those of member countries.
OPEC holds 78% of oil and provide 41% of supply or 60% of internationally traded oil. OPEC holds more than 43% of world’s natural gas and produces 16% of supply. OPEC members seek prices that would provide for a healthy world economy, minimal incentives for alternative fuels, and sufficient cash flow to invest in new production facilities.