This story and video first appeared on the Atlantic website and is reproduced here as a part of the Climate Desk collaboration.
Crude oil is far from being one homogenous substance. Its physical characteristics differ depending on the place in the world it’s pulled out of the ground, and those variations decide its utilization and value.
The Power Info Administration (EIA) puts it succinctly: “not all crude is created equal.Some has numerous sulphur, and it’s called sour. Oil with less sulphur is called sweet. Crudes also fluctuate in how dense they’re. Sweet, light crude is the most valuable type of oil. Bitter, heavy oil fetches the lowest prices. Here’s why:
That is partly because gasoline and diesel gasoline, which sometimes sell at a significant premium to residual gasoline oil and other ‘bottom of the barrelproducts, can often be more simply and cheaply produced using gentle, sweet crude oil. The sunshine sweet grades are fascinating because they are often processed with far less subtle and energy-intensive processes/refineries.(EIA)
Relying on these traits, crude finally ends up at different refineries:
Refining capability within the Gulf Coast has large secondary conversion capacity including hydrocrackers, cokers, and desulfurization models. These units enable the processing of heavy, excessive sulfur (sour) crude oils like Mexican Maya that sometimes promote at a low cost to gentle, low sulfur (candy) crudes like Brent and Louisiana Gentle Sweet. Many East Coast refineries have much less secondary conversion capacity, and in general they process crude oil with lower sulfur content material and a lighter density. (EIA)*
The refining process itself—fractional distillation, followed by additional reprocessing and blending—is how we extract from crude to create the totally different petro-merchandise that we use:
Crude oil is made up of a mixture of hydrocarbons, and the distillation course of aims to separate this crude oil into broad classes of its element hydrocarbons, or ‘fractions.Crude oil is first heated after which put into a distillation column, also known as a still, the place completely different merchandise boil off and are recovered at totally different temperatures. Lighter products, resembling butane and different liquid petroleum gases (LPG), gasoline blending parts, and naphtha, are recovered at the bottom temperatures. Mid-vary merchandise embrace jet gas, kerosene, and distillates (resembling house heating oil and diesel gas). The heaviest products such as residual gasoline oil are recovered at temperatures typically over 1,000 degrees Fahrenheit. (EIA)*
That’s the tough overview of how crude will get from the ground to the gasoline station. Lately, new extraction methods have made more crude accessible.
Because of controversial methods pioneered within the natural fuel business and high oil costs providing incentives for oil companies, extra oil is being extracted from previously unviable fields. Estimates of US proven reserves have risen because of this:
In 2011, oil and gas exploration and production firms working in the United States added nearly three.8 billion barrels of crude oil and lease condensate proved reserves, an increase of 15 %.(EIA)
This has also led to a flip-round in US oil manufacturing, which, in response to a report by the International Energy Agency (IEA), may even exceed Saudi Arabia inside 5 years. Kevin Bullis on the MIT Expertise Evaluate summarizes a few of the key figures:
US manufacturing had fallen from 10 million barrels a day within the 1980s to six.9 million barrels per day in 2008, whilst consumption increased from 15.7 million barrels per day in 1985 to 19.5 million barrels per day in 2008. The IEA estimates that manufacturing could reach 11.1 million barrels per day by 2020, nearly totally due to will increase within the production of shale oil, which is extracted utilizing the same horizontal drilling and fracking strategies which have flooded the US with low cost natural fuel.
Energy researcher Vaclav Smil suggests within the American that these developments should imply the end of “peak oilanxieties:
Clearly, there will come a time when world oil extraction will attain its peak, however even that time could also be of little sensible interest because it could possibly be followed by a chronic, gentle decline or by an extended output plateau at a considerably decrease level than peak production.
But others like journalist Chris Nelder argue that we’ve increased spending on oil manufacturing by super quantities only to see international oil manufacturing edge up a bit. Older, cheaper oil fields are declining, and their oil is being replaced by crude from far costlier sources. Nelder made his numerical case to the Washington Publish like this:
In 2005, we reached 73 million barrels per day. Then, to increase production beyond that, the world needed to double spending on oil manufacturing. In 2012, we’re now spending $600 billion. The value of oil has tripled. And but, for all that additional expenditure, we’ve only raised manufacturing three percent to 75 million barrels per day [since 2005].
And Bryan Walsh at Time notes that, whereas expanded oil production can be good for the economic system and the commerce stability, it doesn’t mean the US will be insulated from international crude costs:
The one thing politicians most need is the one thing the US still won’t be: power impartial. That’s because irrespective of how a lot further oil the US is ready to pump in the years to come back, the global oil market is simply that—global. Oil is the ultimate fungible commodity, able to be shipped and piped around the globe.