26
The Chemistry and Technology of Petroleum
or Ramsbottom carbon residue tests (Chapter 10). Such differences have effects on the methods
chosen for refining the different feedstocks.
The fraction precipitated by propane may also contain acid material, often referred to as asphaltic acids or asphaltogenic acids. These acids can probably be regarded simply as cyclic and noncyclic organic acids of high molecular weight. These acids usually appear in the resin fraction, but if
they have been removed or are absent, the resins are said to be neutral. Removal of the resins from
maltenes leaves the oils fraction.
1.7 OIL PRICES
At this stage of the introduction to crude oil science and technology and in keeping with the historical aspects that have been discussed earlier, a word (or two) about crude oil pricing and the historical perspectives is warranted.
Currently oil is the primary energy source in the world (Figure 1.2) (BP, 2002). For a century
the world has depended on low-cost oil to stimulate and maintain economic growth (Yergin, 1991).
However, sustaining the rate of economic growth is open to question because the volume of oil that
can ultimately be recovered is subject to much speculation because of the uncertainties of reserve
estimation and this, in turn, affects the price of oil (Speight, 2011b).
At this stage, it is appropriate to deal with a related topic and tat is crude oil prices. However,
it is not the intent here to move into predictions of the future. There is nothing difficult about
making predictions. But predictions of future events are always difficult! It is difficult to be
correct! Everyone can justify with amazingly accurate 20-20 hindsight why his/her predictions
were incorrect. But they are never incorrect. These erstwhile mediums will use statistics to show
that, after several rounds of mathematical manipulation, that their predictions were very close.
Even though the outcome bears no relationship to what really happened, it is easy to make a
statement that oil prices will continue to rise (after all, the pessimist is never disappointed), but
the predictability is determining when and by how much.
Therefore, it is the purpose of this section to forgo any predictions. It is, however, the purpose
of this section, to present a brief history of oil prices from which the reader can make his/her own
predictions.
1.7.1 PrICIng strAtegIes
References to the oil price are usually either references to the spotprice of either West Texas (light) crude
oil traded on New York Mercantile Exchange (NYMEX) for delivery in Cushing, Oklahoma, or the
price of Brent crude oil traded on the International Petroleum Exchange (IPE) for delivery at Sullom Voe.
Briefly, the price of a barrel of oil is highly dependent on both its grade (which is determined
by factors such as its specific gravity or API and its sulfur content) and location. The vast majority
Coal
Hydroelectric
Natural gas
Nuclear
Petroleum
FIGURE 1.2 Distribution of world energy resources.
The Chemistry and Technology of Petroleum
or Ramsbottom carbon residue tests (Chapter 10). Such differences have effects on the methods
chosen for refining the different feedstocks.
The fraction precipitated by propane may also contain acid material, often referred to as asphaltic acids or asphaltogenic acids. These acids can probably be regarded simply as cyclic and noncyclic organic acids of high molecular weight. These acids usually appear in the resin fraction, but if
they have been removed or are absent, the resins are said to be neutral. Removal of the resins from
maltenes leaves the oils fraction.
1.7 OIL PRICES
At this stage of the introduction to crude oil science and technology and in keeping with the historical aspects that have been discussed earlier, a word (or two) about crude oil pricing and the historical perspectives is warranted.
Currently oil is the primary energy source in the world (Figure 1.2) (BP, 2002). For a century
the world has depended on low-cost oil to stimulate and maintain economic growth (Yergin, 1991).
However, sustaining the rate of economic growth is open to question because the volume of oil that
can ultimately be recovered is subject to much speculation because of the uncertainties of reserve
estimation and this, in turn, affects the price of oil (Speight, 2011b).
At this stage, it is appropriate to deal with a related topic and tat is crude oil prices. However,
it is not the intent here to move into predictions of the future. There is nothing difficult about
making predictions. But predictions of future events are always difficult! It is difficult to be
correct! Everyone can justify with amazingly accurate 20-20 hindsight why his/her predictions
were incorrect. But they are never incorrect. These erstwhile mediums will use statistics to show
that, after several rounds of mathematical manipulation, that their predictions were very close.
Even though the outcome bears no relationship to what really happened, it is easy to make a
statement that oil prices will continue to rise (after all, the pessimist is never disappointed), but
the predictability is determining when and by how much.
Therefore, it is the purpose of this section to forgo any predictions. It is, however, the purpose
of this section, to present a brief history of oil prices from which the reader can make his/her own
predictions.
1.7.1 PrICIng strAtegIes
References to the oil price are usually either references to the spotprice of either West Texas (light) crude
oil traded on New York Mercantile Exchange (NYMEX) for delivery in Cushing, Oklahoma, or the
price of Brent crude oil traded on the International Petroleum Exchange (IPE) for delivery at Sullom Voe.
Briefly, the price of a barrel of oil is highly dependent on both its grade (which is determined
by factors such as its specific gravity or API and its sulfur content) and location. The vast majority
Coal
Hydroelectric
Natural gas
Nuclear
Petroleum
FIGURE 1.2 Distribution of world energy resources.