Oil Theory
December 28th, 2007 at 07:41pm
Under Oil Fun+ Oil Theory+ Oil and gas
Do you know you only need 42 gallons of crude oil to get 44 gallons of petroleum heating oil in return, $$$. All this without adding anything else to it even natural gasses and other secondary oil refinery products excluded. Is it true? How on earth is this possible?
First the following about the oil refinery process
If you boil crude oil around 550 degrees Celsius inside a distillation tower the basic parts of the crude oil, steams and condensate. This gassy substance sticks to the walls of the distillation tower. Within this distillation process at different heights in the tower, different products are condensing and sticking to the tower walls.
Thicker oil products are at the bottom and lighter oil products such as gasoline and thinner are at the surface of the oil tank. In the end of the refinery process 42 gallons of crude oil is converted to over thousands of m3 natural gas, which eventually re condenses into a fluid substance again. Finally, when the complete process is done, 44 gallons of various petroleum products are sticking on the walls of the distillation tower ready to be sold for by approximately 55 gallon a barrel. An other funny detail is that only 42 gals of crude oil is allowed for each barrel, this because of the risks of expansion, gas forming and other transport problems. Ok right! A ratio of 1:1,04761 to convert Crude to Petroleum.. but how??!
This oil secret is simple;
When the natural gas steams out of the boiling crude oil mass in the tower, new gas forms appear from the basic parts that are boiling and steaming from the first part of this story. The new gasses contain new elements which weren’t existing in the oil substance before the heating process. But however these gasses also will condensate into a liquid fluid oil product, on top of the volume of crude oil your started. We can be prood on our Oil Companies for being so clever.
By Oilism.com
December 23rd, 2007 at 06:41pm
Under Crude oil+ OPEC+ Oil+ Oil Theory+ Oil industry+ Oil politics
This is word that has hiding meaning with it which is sometimes coined as the hidden foreign policy of United states that has helped the US dollar to remain the world’ main currency in international trade and in which the oil is priced. It is also sometimes termed as oil currency war. This single most policy of United States have kept US in fore front of many international decisions and made US a world leader for last many decades.
There is a thought that the petrodollar warfare has kept the US dollar as world currency because some main commodities like oil and natural gases is traded in dollar and if the denomination of trading oil and gases is moved to any other currency like pound then most countries will start selling their dollar reserves bringing a quick shift in the US dollar price. Once the price of dollar goes down it will directly hurt the US economy bringing a rise in inflation and many other economic determinants. US administration officials are scared that if the denomination of oil is changed then that’s going to literally damage the position of US in international politics. This fear of loosing status was supposed to be main reason behind the US invasion in Iraq since Iraqi administration had changed the currency to trade oil from dollar to Euro in late 2000 but that was later again revoked in 2003 after the invasion.
The oil price and US dollar seem to be inversely proportional in times. Once the oil prices start rising the dollar goes down as when dollar strengthens it lowers the price of oil and viceversa. SO that makes United States in position which can determine the role of oil in its favor by using undermined policies. The physical location of major oil reserves too has determining factor in this industry so United States always has tries to keep a hold on currency that the whole industry is trading with.
By Oilism.com
December 20th, 2007 at 05:30pm
Under OPEC+ Oil+ Oil Theory+ Oil politics+ Production levels+ peak oil
Peak oil theory or normally known as Hubbert Peak theory states that the future word production of oil with increasing in near years and again decline at the same rate until the reserves are exhausted. This Peak Oil theory suggest the way to find out the current reserves capacity and its duration to exhaust but it has also been disregarded as mere assumption because earlier theory on similar subjects could not state the real peak time and failed without any calculations. The theory tells that when crude oil reserves starts using the similar amount of water used to extract oil then that reserve starts exhausting and fails in near future.
This theory has been successful to determine the US oil peak time which led to a decline in oil production in United States in 1971. Since then, OPEC has been determining the oil prices in international market which had led to a major oil crisis in 1973. After the US reserves reached its peak many other countries to follow the trend including UK’s north seas which peaked in 1990, Mexico’s national oil company and China’s two major oil reserves are on decline. This has created a sudden decrease in international oil supply. But this has not created a huge panic situation because the recent finding of oil reserves in India and other countries has balanced the demand and supply of oil in markets.
It is actually very difficult to determine the time for peak of any crude oil reserve due to the unreliable accounting of oil producing countries oil reserves and uncertain production data. Some economist have said the years 1989,1995 and 1995 -2000 to be the major years of oil peak but those failed to prove because of unavailable data. Now some economist have a speculation that 2007 might be the peak year of oil and some years later for natural gas but this cannot be proven unless the reserves exhaust completely.
Whatever be the speculation of peak oil theory, the general idea is that crude oil is reducing in quantity, all around the world and unless an alternative solution is not found, the future of world remains slightly uncertain over oil prices.
By Oilism.com