Sixties Fan
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- Mar 6, 2017
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Why are the two of you way off the topic on this thread?Depends on a lot of factors...speed oil is pumping out, other pumps in vicinity and available pipelines.Usually it's a system right at the pump that pumps it out of the ground.It removes more water and contaminants if it's going to be sold as light sweet crude.Light sweet crude is not the same across the board.And most of the petroleum industry really would like the new UAE oil. Most out of the middle east is of poor quality due to their antiquated equipment. UAE has new equipment.
How does the age of the equipment change the quality of the oil?
Usually it's priced as "Brent" or "WTI". Now WTI (West Texas Intermediate) is usually cheaper but better quality (less water and contaminants) than Brent (which is what Middle East oil gets priced at.
The initial refining is supposed to remove the water and contaminants from the oil. And depending upon the source it will determine the final product such as gasoline or diesel, motor oil and lubricant or plastics. Texas produces a blend of diesel and motor oil...South America produces gasoline and the middle east produces motor oil like Africa does. Canada makes plastics.
All refining is usually done around 80% capacity in a normal basis to change seals and make repairs. Every 5-10 years you need a complete changeover. (Crude Oil is acidic and eats the plumbing) this is when newer refining tech is installed...new heat exchangers and flow and pressure and temperature sensors. Filters too.
UAE just had a complete rebuild (as usual budgeted schedule) but also increased capacity as the other surrounding nations are needing to have upgrades and need someone to keep producing.
Light sweet crude is not the same across the board.
Cool story.
How does the age of the equipment change the quality of the oil?
Oil is usually sold by contracts instead of the spot market. The UAE wants a larger chunk of contracts and the others to take less of the sweet spot of supply and demand (plus cheats)
Contract negotiation price is lower than the spot market (advertised every day as part of the futures market) but it also depends on the well it's produced from too.
A barrel of oil is 55 gallons....but Brent is usually holding at least a gallon of pollutants and water. (Usually more)
It removes more water and contaminants if it's going to be sold as light sweet crude.
Which equipment does that?
A barrel of oil is 55 gallons
A barrel of oil is 42 gallons.
What kind of system?
Some like those often used in Louisiana just get a holding tank and separator system. Pumped out on a schedule...the systems used vary wildly depending on type of oil and contaminants.