4
Crude Oil Classification
and Benchmarks
Recent fluctuations in the price of oil have triggered the debate
regarding the level of world oil reserves, and the capacity to meet
future energy demand has taken on a new impetus. This has led to
reinvestigation of the methods of crude oil classification and classification of reserves.
For the purpose of the book, petroleum is a naturally occurring
mixture of hydrocarbons, generally in a liquid state, that may also
include compounds of sulfur nitrogen oxygen metals and other
elements (ASTM D4175), which occurs in sedimentary rock deposits throughout the world (Speight, 2007). However, the definition
of petroleum-associated materials has been varied, unsystematic,
diverse, and often archaic and it is only recently that some attempt
has been made to define these materials in a meaningful manner
(Chapter 1). Thus, it is not surprising that attempts to classify petroleum have also evolved, and it is the purpose of this chapter to
review these methods and present them for further consideration
in terms of pricing strategies.
Crude oil is the primary input into the petroleum refining
industry. Therefore, basic information about the production
and distribution of crude oil will provide useful context for the
103
An Introduction to Petroleum Technology, Economics, and Politics
by James G. Speight
Copyright © 2011 Scrivener Publishing LLC.
Crude Oil Classification
and Benchmarks
Recent fluctuations in the price of oil have triggered the debate
regarding the level of world oil reserves, and the capacity to meet
future energy demand has taken on a new impetus. This has led to
reinvestigation of the methods of crude oil classification and classification of reserves.
For the purpose of the book, petroleum is a naturally occurring
mixture of hydrocarbons, generally in a liquid state, that may also
include compounds of sulfur nitrogen oxygen metals and other
elements (ASTM D4175), which occurs in sedimentary rock deposits throughout the world (Speight, 2007). However, the definition
of petroleum-associated materials has been varied, unsystematic,
diverse, and often archaic and it is only recently that some attempt
has been made to define these materials in a meaningful manner
(Chapter 1). Thus, it is not surprising that attempts to classify petroleum have also evolved, and it is the purpose of this chapter to
review these methods and present them for further consideration
in terms of pricing strategies.
Crude oil is the primary input into the petroleum refining
industry. Therefore, basic information about the production
and distribution of crude oil will provide useful context for the
103
An Introduction to Petroleum Technology, Economics, and Politics
by James G. Speight
Copyright © 2011 Scrivener Publishing LLC.