Chapter 2 - Oil Overview Flashcards
What does Petroleum mostly consist of?
Petroleum consists mostly of hydrocarbon molecules, themselves made up of various combinations of hydrogen and carbon atoms.
What is the simplest hydrocarbon molecule?
The simplest hydrocarbon molecule—one carbon atom bonded to four hydrogen atoms (CH4 )—is called methane and is the primary component of natural gas.
Crude old is a mixture of a very large number of hydrocarbons with arcane names such as? What is a distinguishing characteristic?
Alkanes (or paraffins) Cycloalkanes (or naphthenes) Aromatic hydrocarbons Asphaltenes The number of carbon atoms they contain
The type, variety, and structure of the hydrocarbon molecules in crude oil determine its physical and chemical properties, such as?
Color, thickness (viscosity),and boiling point.
The petroleum industry uses three major parameters to classify crude oil, what are they?
• Geographic location in which it is produced (which affects the cost of transporting the crude to a refinery). • API gravity (an oil industry measure of density;API is the American Petroleum Institute). Light crude oil has relatively low density; heavy crude has high density. Oil with an API gravity (expressed as oAPI) below 10.0 is classified as extraheavy. • Sulfur content. Crude is generally called sweet if it contains relatively little sulfur or sour if it contains substantial amounts.
Why is light crude oil more desirable than heavy oil?
Light crude oil is more desirable than heavy oil because it produces a higher yield of gasoline, a highly valued petroleum product for transportation use.
Why does sweet oil command a higher price than sour oil?
Sweet oil commands a higher price than sour oil because it has fewer environmental problems and requires less refining to meet sulfur-content standards imposed by buyers.
Define Assay Analysis.
Each crude oil has unique molecular characteristics that are evaluated by a process called assay analysis, carried out in a laboratory.
Define benchmark crude.
Oil from an area in which its molecular characteristics have been determined is used as a pricing reference, or benchmark, in global oil markets.
Define West Texas Intermediate
West Texas Intermediate (WTI), a very high quality sweet, light oil delivered at Cushing, Oklahoma, for North American oil. Cushing is the delivery point for WTI traded on the New York Mercantile Exchange (NYMEX), the most widely traded oil futures contracts in the world.
Define Brent Blend.
Brent Blend, made up of 15 oils from fields in the Brent and Ninian systems in the East Shetland Basin of the North Sea. Oil production from Europe and Africa, as well as Middle Eastern oil flowing to the West, tends to be priced using this benchmark.
Define Dubai-Oman.
Dubai-Oman, used as benchmark for Middle East sour crude flowing to the Asia-Pacific region.
Define OPEC Reference Basket.
OPEC Reference Basket, a weighted average of oils and blends from the 12 nations that make up the Organization of the Petroleum Exporting Countries.
Define Midway-Sunset Heavy.
Midway-Sunset Heavy, by which heavy oil in California is priced. Midway-Sunset is a large oil field in Kern County, California.
Define Unconventional Crude Oil.
Several types of oil resources are called unconventional, to distinguish them from oil that can be extracted using traditional oil field methods. These include tar sands (also called oil sands) and shale oil.