Marketing of Crude Oil

Topics: Petroleum, Peak oil, OPEC Pages: 10 (3203 words) Published: July 9, 2013




PART I : Each Question is of 1 mark each
1. Name petroleum products which we get on processing Crude Oil. Ans: Petroleum products are usually grouped into three categories: light distillates (LPG, gasoline, naphtha), middle distillates (kerosene, diesel), heavy distillates and residuum (heavy fuel oil, lubricating oils, wax, asphalt). This classification is based on the way crude oil is distilled and separated into fractions (called distillates and residuum). On processing crude we are getting following products. • Liquified petroleum gas (LPG) • Gasoline (also known as petrol) • Naphtha • Kerosene and related jet aircraft fuels • Diesel fuel • Fuel oils • Lubricating oils • Paraffin wax • Asphalt and tar • Petroleum coke • Sulfur Oil refineries also produce various intermediate products such as hydrogen, light hydrocarbons, reformate and pyrolysis gasoline. These are not usually transported but instead are blended or processed further on-site. Chemical plants are thus often adjacent to oil refineries. For example, light hydrocarbons are steam-cracked in an ethylene plant, and the produced ethylene is polymerized to produce polyethene. 2. What is full form of OPEC? Ans: OPEC is the Organization of the Petroleum Exporting Countries. It is an oil cartel whose mission is to coordinate the policies of the oil-producing countries. The goal is to secure a steady income to the member states and to secure supply of oil to the consumers. Those who invest in petroleum activities should receive a fair return on their investments. OPEC was created at the Baghdad Conference on September 10–14, 1960, by Iraq, Kuwait, Iran, Saudi Arabia and Venezuela. Later it was joined by nine more governments: Libya, United Arab Emirates, Qatar, Indonesia, Algeria, Nigeria, Ecuador, Angola, and Gabon. OPEC was headquartered in Geneva, Switzerland before moving to Vienna, Austria, on September 1, 1965.

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3. What does OECD stand for? Why is OECD considered important in Oil Market? Ans: The Organisation for Economic Co-operation and Development (OECD) is an international economic organisation of 34 countries founded in 1961 to stimulate economic progress and world trade. It is a forum of countries committed to democracy and the market economy, providing a platform to compare policy experiences, seek answers to common problems, identify good practices and co-ordinate domestic and international policies of its members. The OECD defines itself as a forum of countries committed to democracy and the market economy, providing a setting to compare policy experiences, seek answers to common problems, identify good practices, and co-ordinate domestic and international policies. Its mandate covers economic, environmental, and social issues. It acts by peer pressure to improve policy and implement "soft law"—non-binding instruments that can occasionally lead to binding treaties. In this work, the OECD cooperates with businesses, with trade unions and with other representatives of civil society. Collaboration at the OECD regarding taxation, for example, has fostered the growth of a global web of bilateral tax treaties. The OECD promotes policies designed: • To achieve the highest sustainable economic growth and employment and a rising standard of living in Member countries, while maintaining financial stability, and thus to contribute to the development of the world economy; • To contribute to sound economic expansion in Member as well as nonmember countries in the process of economic development; and • To contribute to the expansion of world trade on a multilateral, nondiscriminatory basis in accordance with international obligations. 4. What is the R/P Ratio? Ans: The Reserves-to-production ratio (RPR or R/P) is the remaining amount of a non-renewable resource, expressed in...
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