OIL MARKET

What is oil?
A nonrenewable source formed from the remains of plants and animals that lived long ago

THE REFINING PROCESS

• Seperation
• Conversion
• Treatment
• Each used to refine the oil

SEPARATION

• Heavy components on the bottom, light on the top
• Difference in weights allows for seperation of chemicals
• Resulting liquids and vapors are discharged into distillation units
• Separate according to weight and boiling point
• Lightest go to the top, medium in the middle, heavy at the bottom

Separation Variables:
Weight
Boiling point

CONVERSION

• Fractions from distillation units are turned into streams
• Cracking uses heat and pressure to crack heavy into light
• Can also reaarange molecules to add value
• Alkylation combines some of gaseous products of cracking
• Reforming uses heat, moderate pressure, and catalysts

Conversion Variables:
Heat
Pressure

Treatment:
Carefully combine a variety of streams from the processing units

Treatment Variables:
Octane level
Vapor pressure ratings
Other special considerations

SUPPLY, DEMAND, TRADE, ETC.

• The process variables can affect the quality which can drive up prices
• Export 3 million barrels a day to countries such as Mexico
• U.S. uses 18.5 million barrels per day
• U.S. produces 7.03 million barrels per day

BIGGEST OIL SUPPLIERS

• China
• Canada
• Russia
• Saudi Arabia
• United States

BIGGEST CONSUMERS

• United States
• China
• Japan

Untitled Slide

IMPORTS

• Canada (29%)
• Saudi Arabia (14%)
• Venezuela (11%)
• Nigeria (10%)
• Mexico (8%)

Environmental Impact:
Although oil can make life easier, it can lead to pollution and harm the environment