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Tuesday, June 15, 2010

Petrol and Oil Company History



Amoco
The economic growth of the industrialised world is due in no small part to the use of fossil fuels, and arguably no fossil fuel has had more impact than oil.

During the development of the combustion engine the inventors quickly identified that fuels based on hydrocarbons were the most suitable, and with the growth in popularity of the automobile a rapidly expanding industry was created almost overnight.

The rush was on, not only to locate the necessary reserves of oil, but to refine and improve the quality. The first iterations of petrol were based on coal tar distillates and distillation of crude oil, the latter being used to power the first four-stroke cycle spark-ignition engine in 1884.

At the time, petrol was considered an undesirable by-product from the manufacture of kerosene, the latter being used extensively for lighting and other commercial and domestic purposes. As the proliferation of cars grew during the first few decades of the twentieth century, demand for petrol would see its profile as a fuel source rise, quickly surpassing the once mighty kerosene.

Thermal cracking was introduced in 1913 to convert a larger fraction of petroleum into petrol - earlier investigations had shown that the heating of crude oil caused a split-up of molecules, thus increasing the proportion of volatile fractions suitable for petrol manufacture (thermal cracking required elevated pressure for the process).

The 1920’s were a time of great innovation in the automotive world, and oil companies needed to invest heavily in refining techniques to ensure their petrol would meet the ever more exacting standards being required to run the latest engines. During that time it was found that certain silica/alumina-based catalysts accelerated the reaction rate to the extent that high pressure became unnecessary. The advantages of catalytic cracking over thermal cracking were a higher petrol yield and a better quality of product. Then, in 1926, lead was used as an anti-knock agent.

Next came a breakthrough in the catalytic cracking process, the initially developed fixed-bed catalytic process was replaced by a fluid-bed process, which allowed for excellent control of temperature and reaction, in the process providing better yields of petrol from the refineries.

The introduction of the catalytic cracking process and catalytic reforming in the 1940’s was significant for the manufacture of high-octane petrol components. During the 1950’s automobile manufacturers started to increase the compression ratios in their engines, resulting in higher octane ratings, lead levels, and vapour pressure.

Minor improvements continued to be made to petrol formulations to improve yields and octane, including the introduction of so-called performance additives such as “Platformate” and “Activate”. From the 1970s petrol underwent a slow evolution, most evident to the classic car enthusiast being the phasing out of leaded petrol (unleaded fuels were introduced to protect the exhaust catalysts that were being introduced for environmental reasons).

Thursday, June 10, 2010

What Fuels Are Made From Crude Oil?

After crude oil is removed from the ground, it is sent to a refinery by pipeline, ship, or barge. At a refinery, different parts of the crude oil are separated into useable petroleum products. Crude oil is measured in barrels (abbreviated "bbls").

A 42-U.S. gallon barrel of crude oil provides slightly more than 44 gallons of petroleum products. This gain from processing the crude oil is similar to what happens to popcorn, which gets bigger after it's popped. The gain from processing is more than 6%.

One barrel of crude oil, when refined, produces about 19 gallons of finished motor gasoline, and 10 gallons of diesel, as well as other petroleum products. Most petroleum products are used to produce energy. For instance, many people across the United States use propane to heat their homes.


This graphic illustration of a barrel shows the percentage of   products that are made from 44 gallons of crude oil for 2008: 18.56%   gasoline; 1.72% liquefied petroleum gas (LPG); 1.68% heavy fuel oil   (residual); 7.01% other products; 4.07% jet fuel; 1.38% other   distillates (heating oil); and 10.31% diesel fuel.

Other products made from petroleum include:

  • Ink
  • Crayons
  • Bubble gum
  • Dishwashing liquids
  • Deodorant
  • Eyeglasses
  • CDs and DVDs
  • Tires
  • Ammonia
  • Heart valves

Refining Process. How Crude Oil Is Refined into Petroleum Products



The world uses gasoline and petroleum products to move merchandise and people, help make plastics, and do many other things. At a refinery, different parts of the crude oil are separated into useable petroleum products. Today, some refineries turn more than half of every 42-gallon barrel of crude oil into gasoline.

How does this transformation take place? Essentially, refining breaks crude oil down into its various components, which then are selectively reconfigured into new products.

All refineries perform three basic steps:

  1. Separation
  2. Conversion
  3. Treatment
Diagram of a refinery process flow. Adapted from Chevron.

Petroleum product



Petroleum products are useful materials derived from crude oil (petroleum) as it is processed in oil refineries.

According to crude oil composition and demand, refineries can produce different shares of petroleum products. Largest share of oil products is used as energy carriers: various grades of fuel oil and gasoline. Refineries also produce other chemicals, some of which are used in chemical processes to produce plastics and other useful materials. Since petroleum often contains a couple of percent sulfur, large quantities of sulfur are also often produced as a petroleum product. Hydrogen and carbon in the form of petroleum coke may also be produced as petroleum products. The hydrogen produced is often used as an intermediate product for other oil refinery processes such as hydrogen catalytic cracking (hydrocracking) and hydrodesulfurization.


Engineering Scholarships

Find Money to Become a Petroleum Engineer

Students pursuing the field of Petroleum Engineering will receive basic curriculum in general engineering before launching into the more specialized topics of oil and natural gas. Where the resources are found, how they are located, and via what methods they are removed from the earth and transported, are all part of the course work.

In the field, a gas or petroleum engineer will use increasingly sophisticated methods to extract
and transport oil and natural gas as well as utilize innovative methods for discovery. While we are still a world reliant on fossil fuels the demand for Petroleum Engineers will remain strong.

Government Funding

The U.S. Department of Energy sponsors the Mickey Leland Energy Fellowships. The awards give minority students pursuing a major in petroleum and natural gas engineering and related programs a generous opportunity to work in the confines of an internship with the U.S. government. Recipients must be considering future careers with the Department of Energy.

College Scholarships

Students enrolled in the Petroleum and Natural Gas Engineering major at West Virginia University may qualify for scholarships directly from the College of Engineering and Mineral Resources.

Texas A&M University sponsors the B.D. O'Neal '53 Scholarship for students studying in the Petroleum Engineering program.

University of Pennsylvania College of Earth and Mineral Sciences offers students majoring in the Petroleum and Natural Gas Engineering program the following scholarship opportunities. Awards may be between $500 and $6,000:

  • Luther Bissey Memorial Scholarship is open to academically outstanding undergrads.
  • Richard P. and John N. Davis Memorial Scholarship is awarded to students with proven academic talent combined with financial need. Eligible applicants will be undergraduates in the program.
  • Students with demonstrated economic disadvantage may qualify for the Edwin Drake Memorial Scholarship.
  • Robert Hawk Scholastic Achievement Award is based on just what it says: academic merit of the highest order. Juniors are eligible to apply.
  • Fred Kumpf Memorial Scholarship is open to students. Awards are based on academics and financial need.
  • Applicants for the John Leone Scholarship must be at least in their junior year and not only enrolled in the P&N program, but also studying business courses.
  • Freshmen enrolled in the program may apply for the Richard and Dorothy Lesher Scholarship. Students must have outstanding academic records to be considered.
  • C. Drew Stahl Award is applicable to undergraduates who have an uncanny aptitude in the major.
  • George Trimble Scholarship is awarded based on a combination of criteria including talent in the major and financial need.

Petroleum Engineering Colleges



A program that prepares individuals to apply mathematical and scientific principles to the design, development and operational evaluation of systems for locating, extracting, processing and refining crude petroleum and natural gas, including prospecting instruments and equipment, mining and drilling systems, processing and refining systems and facilities, storage facilities, transportation systems, and related environmental and safety systems.

Petroleum Engineering  Colleges

Petroleum engineering


Petroleum engineering is an engineering discipline concerned with the subsurface activities related to the production of hydrocarbons, which can be either crude oil or natural gas. These activities are deemed to fall within the upstream sector of the oil and gas industry, which are the activities of finding and producing hydrocarbons. (Refining and distribution to a market are referred to as the downstream sector.) Exploration, by earth scientists, and petroleum engineering are the oil and gas industry's two main subsurface disciplines, which focus on maximizing economic recovery of hydrocarbons from subsurface reservoirs. Petroleum geology and geophysics focus on provision of a static description of the hydrocarbon reservoir rock, while petroleum engineering focuses on estimation of the recoverable volume of this resource using a detailed understanding of the physical behavior of oil, water and gas within porous rock at very high pressure.

The combined efforts of geologists and petroleum engineers throughout the life of a hydrocarbon accumulation determine the way in which a reservoir is developed and depleted, and usually they have the highest impact on field economics. Petroleum engineering requires a good knowledge of many other related disciplines, such as geophysics, petroleum geology, formation evaluation (well logging), drilling, economics, reservoir simulation, well engineering, artificial lift systems, and oil & gas facilities engineering.


Wednesday, June 9, 2010

Wednesday, June 2, 2010

Petrol price down by Rs11.55/litre

ISLAMABAD - Consequent upon interim order of the Supreme Court of Pakistan, the government on Tuesday revised the prices of petroleum products downward deducting carbon tax out of it.
As directed by the Supreme Court, the Oil and Gas Regulatory Authority late Tuesday night issued a notification to be effective from July 8 (today). According to the latest notification, the price of premium motor gasoline went down from Rs 62.13 to Rs 50.58 by Rs 11.55 per litre or 18.59 per cent. Similarly, the HOBC went down by 16.24 from Rs 78.78 to 62.54 with a decrease of almost 21 per cent. Kerosene oil having least amount of the carbon tax at the rate of Rs 6 per litre had the least advantage as compared to other products. Kerosene was slashed by Rs 6.36 from Rs 59.35 to Rs 52.99 per litre. Although, the diesel was not part of the OGRA notification, the officials said its price has also gone down by roughly Rs 9 per litre.
According to notification of the OGRA dated June 30, 2009, the carbon tax was imposed at premium motor gasoline @ Rs 10 per litre, Rs 8 per litre on diesel, and Rs 6 per litre on Kerosene. Since the apex court has suspended the imposition of the carbon tax till the final judgment in this case, the government was bound to withdraw carbon tax immediately, an official said.
The government was in a fix after the interim order of the court as it had already abolished petroleum development levy, the predecessor of the carbon tax. According to the official who requested anonymity, there was a panic situation in the Ministry of Petroleum and Natural Resources after the interim order as the Advisor to Prime Minister on Finance Shaukat Tarin and Finance Secretary were abroad to attend IMF meeting in Turkey. Since it is the issue of taxation, the Finance Ministry was supposed to find a way out.
According to the official, this immediate implementation of the court’s interim order would definitely provide relief to the public but would also pile up the price differential claim of the Oil Marketing Companies (OMCs).
The official said that the government was determined to fight the case of carbon tax in the apex court. He said that the government was having no fiscal space to pay the price differential claim to the OMCs. He also pointed out that the carbon tax was to generate Rs 122 billion or more depending upon the volume of sale during the year. The official however admitted that the petroleum products were being subjected to double taxation as the General Sales Tax was being levied after including the carbon tax in the taxable sale price.

New Petroleum Prices

For 1st March, 2010 the government announced new petroleum prices; though this time the government made a sincere effort to show a reduce in pricing but failed miserably. It seems that government has only mastered the act of ridiculing masses and the nation vehemently. In a bid to reduce prices the government only found space of 64 paisa’s to reduce but when it comes to increasing prices the government miserably fails.
The recent reduction in petroleum prices is equivalent to making fun of the misery of this nation. On 31st January, 2010 OGRA (Oil and Gas Regulatory Authority) increased the petroleum price to Rs 71.21. It shows the seriousness of government to provide relief to the masses who are burring in the fire of the inflation, terrorism, nepotism, corruption and shortage in basic life necessities.

Fuel prices in south to be cheaper than north

KARACHI: Fuel prices in the southern regions of Pakistan will be lower as compared to northern parts because of the abolition of the internal freight equalisation margin (IFEM).

The IFEM is used to maintain uniform prices of fuel across the country. The petroleum ministry, on Pakistan State Oil’s (PSO) recommendation, had asked the Economic Coordination Committee to deregulate the inland freight equalisation margin on petroleum products. PSO is expected to benefit the most from IFEM with the power to set market prices because of its high market share, said BMA Capital analyst Muhammad Ali Taufiq in his research report.

The abolition of the inland freight equalisation margin will most likely be announced in the national budget on June 5, according to Topline Securities. The IFEM is used for high speed diesel (HSD), petrol, high octane blending component (HOBC), kerosene and light diesel oil. South versus North It is highly anticipated that the deregulation of IFEM will take its toll on high speed diesel and petrol in the initial period.

Such measures will significantly reduce high speed diesel and petrol prices in the south compared to the northern regions due to the following reasons. Imported petroleum products will be cheaper in Karachi as the port is located in the city, which will keep the transportation cost lower as compared to northern parts of the country. High concentration of refineries in the south will further facilitate the availability of petroleum products and achieve synergies with respect to internal freight charges.

Consumption of petroleum products in the south is highly concentrated in the urban areas which are in close proximity to the port and the refineries, compared to the north where consumption is evenly spread over a larger area PSO to benefit the most Deregulation of IFEM will impact different oil marketing companies in different ways in each province. PSO is expected to benefit the most with the power to set market prices because of its high market share, said the analyst.

PSO has the largest retail distribution network in the country representing 56 per cent of the total. PSO holds a market share of 48 per cent in petrol and 61 per cent in high speed diesel. PSO has an 84 per cent share in Balochistan and can make a price monopoly in the region, the analyst said. Leading players in Sindh – PSO, Shell and Caltex – may decide to keep one price in the province and set up barriers for entry of other oil marketing companies. Punjab would continue to remain a competitive region where major players can collectively set IFEM, added the analyst.

Petrol pump price drops in May

Wellington, June 1 - New Zealand petrol prices fell by almost 5 per cent in May as a result of a large drop in the international price of crude oil.

Monthly figures from AA's PetrolWatch show petrol prices in most centres fell 9c per litre during May, dropping from $1.82 a litre for unleaded 91 to $1.73.

Diesel prices dropped by 5c per litre to about $1.16, depending on location.

The drop in prices came as crude oil prices fell over US$20 (NZ$29.56) a barrel during May, to under US$67.

A much greater drop in the price of petrol would have occurred had it not been for the 6c fall in the New Zealand dollar over the same period, AA PetrolWatch spokesperson Mark Stockdale said.