From Oil in the Ground to Gas in Your Car

FROM OIL IN THE GROUND TO GAS IN YOUR CAR Learn how oil is converted into gasoline and then brought to you, the consumer. OIL DISCOVERY America gets it's oil supply from all around the world 15.1% Canada 3.1% Other 38.8% U.S. 19.6% Latin America 10.3% Africa 12.9% Persian Gulf OIL EXTRACTION Once the oil is discovered, it must be extracted. Oil can be extracted on land or water. Oil Water Gas Oil Water Gas Oil Water తతి కం After the oil is extracted, it is tested for TWO CHARACTERISTICS that determine its quality & overall price: Oil Density Light | Intermediate | Heavy Oil Sulfur Easier to Refine Difficult to Refine Difficult Easier to Refine Confent to Refine Heavy Intermediate | Light $$$ More Value 2$ Less Value $$$$ More Value Less Value IDEAL OIL HAS LOW DENSITY & LOW SULFUR OIL TRANSPORTATION Next, the oil is transported by either: Oil Tanker More cost effective Oil Pipeline Less cost effective or OIL REFINING At a refinery, crude oil undergoes several processes that change it into many useful products, from fuels to fertilizers, from plastics to paving materials. 1.5% Other Refined Products 0.9% Lubricants 1.7% Asphalt & Road Oil 2.8% Liquefied Refinery Gas 3.3% Residual Fuel Oil 1.7% Petroleum Coke 5.4% Still Gas 12.3% Jet Fuel 15.3% Distillate Fuel Oil 51.4% Gasoline 15.4 Million Barrels are refined every day in the U.S. OIL DISTRIBUTION Once oil has been processed, it's shipped from the refinery to a refiner's terminal or to a wholesaler. From here it is sold, either directly or indirectly. WHOLESALER REFINERS' TERMINALS Direct Sales Indirect Sales +Additives +Additives +Additives Branded Distributor Unbranded Distributor Branded Branded Branded Jobber Jobber Company Operated Stations Lessee Open Dealers Supplied Supplied Branded Independent Dealers Dealers Dealers OIL CONSUMPTION After working its way through the refining and distribution channels, the processed oil (now fuel) is available for purchase all around the country. U.S. Monthly Oil Consumption 2007-2012 9.8 9.6 9.4 9.2 9.0 8.8 8.6 5-Year Range (2007-2011) ...... Preliminary 8.4 2012 2011 8.2 8.0 May July June January February December GAS Brought to you by Tradequip International www.tradequip.com Sources: http://www.quoteoll.com/oll-imports.html http://www.ela.gov/todayinenergy/detail.cfm?id%3D7510 http://www.energy.ca.gov/2008publications/CEč180-2008-008/CEC-180-2008-008.PDF http://www.npr.org/2012/04/11/150444802/where-does-america-get-oll-you-may-be-surprised LAND DRILLING OFFSHORE DRILLING Millions of Barrels March September October November