Dave's ESL Bio-Fuel

Three Years Oil and You

ESL Basic Facts

ESL Lesson 1
Oil in Our Every Day Life

ESL Lesson 2
The History of Mining

ESL Lesson 3
Economic growth

ESL Lesson 4
Delivery Systems

ESL Lesson 5
Cities and Population Movement

ESL Lesson 6
Recycling

ESL Lesson 7
Rubber

ESL Lesson 8
Farming

Classification of different types of crude oils

The oil industry classifies "crude" by the location of its origin (e.g., "West Texas Intermediate, WT I" or "Brent") and often by its relative weight (API gravity or viscosity) ("light", "intermediate" or "heavy"); refiners may also refer to it as (call it) "sweet", which means it contains little sulfur, or as "sour", which means it contains substantial amounts ( large amount by percentage) of sulfur and requires more refining to make products from it.

The World Reference Barrels are:
Brent Blend, comprising (made up of) 15 oils from fields in the Brent and Ninian systems in the East Shetland Basin of the North Sea. The oil is landed (taken to) at Sullom Voe terminal (port) in the Shetlands. Oil production from Europe, Africa and Middle Eastern oil flowing (going in the direction of) West tends to be priced off the price of this oil, which forms a benchmark (standard measure). “Brent Crude”

In June 15, 2005 the OPEC basket was changed to reflect the characteristics (uniqueness) of the oil produced by OPEC members. The new OPEC Reference Basket (ORB) is made up of the following:

The price of a barrel of oil is highly dependent (depends on) on both its grade which is determined by factors (points) such as its specific gravity or API and its sulfur content, and location (where it comes from).
More info at: http//www.opec.org/home/basket.asp

OPEC Reveal Global Light Sweet Crude Peaked

August 2005 by Chris Vernon

OPEC This information on has come to us from the Organization of Petroleum Exporting Countries (OPEC) itself. OPEC publishes (prints) a monthly global (worldwide) market review and the August 2005 issue has data (information) on non-OPEC and OPEC oil extraction (pumped out of the ground) by weight and sulfur content from 2000 to 2004.
August 2005 OPEC Monthly Oil Market Report, Page 4.

The key point (most important piece of information) is that non-OPEC light sweet crude went from 41% of 66 mb/d to 34% of 70 mb/d from 2000 to 2004, a drop of 3.25mb/d. OPEC added 1 mb/d of light sweet crude over the same period resulting in a global reduction ( shrinking amount) of light sweet crude of over 2mb/d showing that global light sweet crude has peaked (reached maximum production level and then started to decrease) and is now in decline. Although the total volume (amount) of 'oil' extracted in 2004 compared with 2000 has increased, the proportions (percentage amount) of different grades (types) of oil have shifted (changed).

Light sweet crude is the most attractive (most wanted) because it is easier to refine (turn into gasoline or other oil products made from oil), global refining capacity (total amount the world combined can turn crude oil into gasoline or other oil based products) is tailored to (custom built for) light sweet crude of which there is now a shortage. This shift (changed from one to the other) in grades (light to sour) has resulted in (caused) a shortage of refining capacity (not enough space) for the available (have right now) medium/heavy sour oil. As oil becomes scarce (less and less available) it is clear that the best stuff will be pumped first, the best stuff is the light sweet crude.

Continue to: What is in a Barrel of Crude Oil

TOP

ESL Basic Facts

...............................................
Hubbert Peak Theory
...............................................
Oil Reserves by Country
...............................................
Energy Return on Energy Invested (EROEI)
...............................................
What is Crude Oil
...............................................
Classification of Different Types of Crude Oil
...............................................
What is in a Barrel of Crude Oil
...............................................