What Is Petroleum Processing?
Petroleum is a mixture of gaseous, liquid, and solid hydrocarbons that have a natural appearance. Petroleum is divided into crude oil, natural gas, natural gas liquids, and natural tars, but it is customary to use "petroleum" as the definition of "crude oil". [1]
Petroleum is a mixture of gaseous, liquid, and solid hydrocarbons that have a natural appearance. Petroleum is divided into crude oil, natural gas, natural gas liquids, and natural tars, but it is customary to use "petroleum" as the definition of "crude oil". [1]
Petroleum is a viscous, dark brown liquid called "industrial blood." Oil is stored in parts of the upper crust. The main component is a mixture of various alkanes, naphthenes, and aromatics. Is one of the main objects of geological exploration. [1]
The oil-forming mechanism of petroleum has two theories of biodeposition and petrochemical oil. The former is widely accepted. It is considered that oil is formed by the organisms in ancient oceans or lakes after a long evolution. It is believed that petroleum is generated from the carbon in the earth's crust, has nothing to do with biology, and is renewable. Petroleum is mainly used as fuel oil and gasoline, and is also a raw material for many chemical industry products such as solutions, fertilizers, pesticides and plastics. [2]
The ancient Egyptians and the Babylonians of Cuba have already exploited oil for a long time. The Chinese name "Petroleum" was first named by the scientist Shen Kuo of the Northern Song Dynasty. [3]
- Chinese name
- oil
- Foreign name
- petroleum, oil
- Main ingredients
- A mixture of alkanes, naphthenes, and aromatics
- Continue above
- The main ingredients of oil
- colour
- Available in red, golden, dark green, brown, and red to transparent
- Unit
- 1 barrel = 42 gallons
- Unit
- 1 gallon = 3.78543 liters
- Ingredients
- Oil, gum, asphalt, carbon
Oil profile
The properties of petroleum vary depending on the place of origin. The density is 0.8-1.0g / cm 3 , the viscosity range is wide, the freezing point varies widely (30 ~ -60 ° C), and the boiling point range is from normal temperature to more than 500 ° C. It can be dissolved in a variety of organic Solvent, insoluble in water, but can form an emulsion with water. However, the composition and appearance of petroleum in different oil fields can be very different. Oil is mainly used as fuel oil and gasoline. Fuel oil and gasoline constituted one of the most important secondary energy sources in the world in 2012. [4]
Petroleum is also the raw material for many chemical industry products such as solvents, fertilizers, pesticides and plastics. 88% of the oil extracted in 2012 was used as fuel, and the other 12% was used as feedstock for the chemical industry. In fact, petroleum is a non-renewable raw material. [4]
The difference between petroleum and crude oil
Petroleum is an industrial term, and compared to mineral resources, the so-called petroleum industry is a mineral resources industry. During the petroleum exploration process, oil reserves are calculated and determined based on the degree of exploration and proven conditions. Petroleum reserves are the result of geological exploration, and are a kind of raw mineral resources to be developed. [5]
Crude oil is the petroleum that is buried in rock formations, and retains its original physical and chemical form. It is the primary product of the petroleum industry and realizes its use value. It is the result of oil field development. Crude oil production is an already developed Production of mineral resources. [5]
The term petroleum is often used to describe the permeability, porosity, and taste of oil reservoirs. The term crude oil is mostly used in national statistics for crude oil production statistics, to evaluate the physical and chemical properties of crude oil, and to describe the recovery factor, degree of recovery and rate of oil recovery. [5]
Petroleum as a mineral resource refers to oil containing water and gas, while crude oil is an industrial product in which water and gas have been separated from the oil and is a qualified industrial product. [5]
Petroleum properties
The representative Daqing Petroleum is a low-sulfur paraffin-based petroleum. Most of the petroleum that has been mined is low-sulfur paraffin-based. This kind of petroleum has low sulfur content, high wax content, and high freezing point. It can produce high-quality kerosene, diesel oil, solvent oil, lubricating oil, and commercial paraffin, and straight run gasoline has good lead sensitivity. [1]
Some petroleum have high sulfur content and high colloid content, which are sulfur-containing paraffin bases. The straight-run gasoline fraction has high yield and good lead sensitivity. The diesel fraction has high cetane number, high flash point, high sulfur content, and high acidity. After refinement, light diesel oil and special diesel oil can be produced. Some of the components of the lubricating oil fraction have a viscosity index of 90 or more, which is a good raw material for the production of internal combustion engine oil. [6]
Some petroleum have low sulfur content and high wax content, and they belong to a low sulfur naphthene-intermediate group. Its gasoline fraction has good lead sensitivity and is also rich in naphthenes and aromatic hydrocarbons, so it is also a good raw material for catalytic reforming. The freezing point and sulfur content of diesel oil fractions are both low, and the acidity is high. The product needs alkaline washing. The vacuum residue can be oxidized to produce petroleum construction asphalt. [6]
Other low-condensation petroleum has low sulfur content and low wax content, which are low-sulfur intermediate groups. It is suitable for the production of low-coagulation products with special properties, and can also extract naphthenic acid, which is a rare and precious resource. [1]
Petroleum unit
Petroleum refining process
One ton is approximately 7 barrels. If the oil is light (thin), 1 ton is approximately 7.2 barrels or 7.3 barrels. [4]
1 barrel = 42 gallons
1 gallon = 3.78543 liters
US gallon = 3.785 liters
1 gallon = 4.546 liters
So, 1 barrel = 158.99 liters
Oil color
The color of petroleum is very rich, including red, golden, dark green, black, maroon, and transparent; the color of petroleum is determined by the content of colloid and asphaltene contained in it. Some wells in North China's Dagang Oilfield produce colorless oil. Karamay oil is brown to black, and Daqing, Shengli, and Yumen oil are all black. Colorless oil is produced in California, the US, Baku, the former Soviet Union, Romania, and Sumatra in Indonesia. The formation of colorless petroleum may be related to the adsorption of colored colloids and asphaltenes by rocks during the migration process. However, dark oil of varying degrees occupies an absolute majority, and it is found in almost every major petroleum basin in the world. [1]
Petroleum composition
Petroleum element composition
The fundamental reason why petroleum differs in appearance and physical properties is that its chemical composition is not exactly the same. Petroleum is neither a simple substance composed of a single element nor a compound composed of two or more elements, but a mixture of various compounds composed of various elements. Therefore, its properties are not as determined as those of simple substances and pure compounds, but a comprehensive reflection of the properties of the various compounds contained. [6]
The main components of petroleum are carbon and hydrogen. Hydrocarbons are also referred to as hydrocarbons for short. Hydrocarbons are the main objects of petroleum processing and utilization. [6]
The various elements contained in petroleum do not exist in elementary form, but exist in the form of various hydrocarbons and non-hydrocarbons that are combined with each other. [6]
Petroleum is primarily a hydrocarbon. It consists of a mixture of different hydrocarbons. The chemical elements that make up petroleum are mainly carbon (83% to 87%), hydrogen (11% to 14%), and the rest are sulfur (0.06% to 0.8%) and nitrogen (0.02%). ~ 1.7%), oxygen (0.08% ~ 1.82%), and trace metal elements (nickel, vanadium, iron, antimony, etc.) [2] . The hydrocarbons formed by carbon and hydrogenation constitute the main component of petroleum, accounting for 95% to 99%. Various hydrocarbons are divided according to their structure: alkanes, naphthenes, and aromatics. Generally, natural petroleum does not contain olefins, and secondary processing products often contain olefins and alkynes in varying amounts. Compounds containing sulfur, oxygen and nitrogen are harmful to petroleum products and should be removed as much as possible during petroleum processing. [7]
In addition, trace elements such as chlorine, iodine, arsenic, phosphorus, nickel, vanadium, iron, potassium contained in petroleum also exist in the form of compounds. Although its content is small, it has little effect on petroleum products, but arsenic in it will poison the catalytic reforming catalyst, and iron, nickel, and vanadium will poison the catalytic cracking catalyst. Therefore, in this type of processing of petroleum, the raw materials must be selected or pretreated. [6]
Petroleum hydrocarbon composition
Molecular structure of petroleum
The main components of petroleum are: oily (this is its main component), gum (a viscous semi-solid substance), asphaltene (dark brown or black brittle solid substance), and carbonaceous. Petroleum is a mixture of hydrocarbons. It has a special odor and is a colored flammable oily liquid. Strictly speaking, petroleum contains hydrocarbons composed of hydrogen and carbon as main components. Chemicals that make up petroleum can be decomposed by distillation. As processed products, petroleum includes kerosene, benzene, gasoline, paraffin, and asphalt. Strictly speaking, petroleum contains hydrocarbons composed of hydrogen and carbon as main components. All four of the smallest molecular weight hydrocarbons are gas. [2]
Hydrocarbons in petroleum can be roughly divided into alkane, naphthene, aromatic hydrocarbon and unsaturated hydrocarbon according to their structure. Different hydrocarbons have different effects on the properties of various petroleum products. [6]
1. Alkanes Alkanes are an important component of petroleum. All carbon atoms in the molecular structure are combined with each other by single bonds, and the remaining carbons are saturated with hydrogen atoms. They are called alkanes. The formula is C n H 2n + 2 . [6]
Alkanes are named in the order of the number of hydrocarbon atoms in the molecule, and the number of carbon atoms 1-10 is represented by A, B, C, D, P, H, G, S, N, and dec. It is directly expressed in Chinese numerals: those containing only one carbon atom are called methane; those containing sixteen carbon atoms are called hexadecane. In this way, a large number of alkane homologues are formed. [6]
Alkanes can be divided into two types of normal paraffins and isoparaffins according to their structure. Those with no branched carbon chains on the main carbon chain of the alkanes are called normal paraffins, and those with branched structures are called isoparaffins. [6]
At normal temperature, the normal n-alkanes from methane to butane are gaseous; the normal n-alkanes from pentane to pentadecane are liquid; the normal n-alkanes above hexadecane are waxy solids (the main component of paraffin). [6]
Since alkane is a saturated hydrocarbon, its chemical stability is better at normal temperature, but it is not as good as that of aromatic hydrocarbon. Under certain high temperature conditions, alkanes easily decompose and produce a series of oxidation products such as alcohols, aldehydes, ketones, ethers, and carboxylic acids. Alkanes have the lowest density, the best viscosity-temperature properties, and are good constituents of fuels and lubricants. [6]
Although n-alkane and iso-alkane have the same molecular formula, they have different properties due to different molecular structures. Isoparaffins have lower boiling points than normal paraffins with the same number of carbon atoms, and the more the isomerization, the more the boiling point decreases. In addition, isoparaffins are more viscous than n-paraffins, and their viscosity-temperature properties are poor. Normal paraffin is easy to produce oxidation reaction because its carbon atoms are arranged in a straight chain, that is, it has good ignition performance. It is a good component of fuel for compression ignition internal combustion engines. But the content of normal paraffin should not be too much, otherwise the freezing point is high and the low temperature fluidity is poor. Due to its compact structure and stable properties, although it has poor ignition performance, it is not easy to produce peroxides during combustion, that is, it is not easy to cause mixed gas deflagration. It is a good component of ignition internal combustion engines. [6]
2. The chemical structure of naphthenes is the same as that of alkanes. The carbon atoms in their molecules are bonded to each other with a single valence, and the remaining carbon valences are bonded to hydrogen atoms. Its carbon atoms are connected to each other to form a ring, so it is called a cycloalkane. Since all carbon valences in the naphthenic molecule are saturated, it is also a saturated hydrocarbon. The molecular formula of naphthenes is C n H 2n . [6]
Naphthenes have good chemical stability, similar to alkanes but not as good as aromatics. Its density is large, its spontaneous ignition point is high, and its octane number is in the middle. It has good flammability, low freezing point and good lubricity, so it is also a good component of gasoline and lubricating oil. Naphthenes are divided into monocycloalkanes and polycycloalkanes. The lubricating oil contains a lot of monocycloalkanes, which has good viscosity-temperature performance, and the lubricating oil contains many polycycloalkanes, which has poor viscosity-temperature performance. [6]
3. Aromatic hydrocarbons Aromatic hydrocarbons are unsaturated hydrocarbons in which the carbon atoms have a cyclic connection structure with alternating single and double bonds. The molecular formula is C n H 2n-6 , C n H 2n-12 , C n H 2n-18 Wait. It was originally extracted from natural resins, gums, or essential oils and has an aromatic odor, so these compounds are called aromatic hydrocarbons. Aromatic hydrocarbons all have a benzene ring structure, but aromatic hydrocarbons do not all have an aromatic odor. [6]
Aromatic hydrocarbons have good chemical stability. Compared with alkanes and naphthenes, they have the highest density, the highest spontaneous ignition point, and the highest octane number, so they are good components of gasoline. However, because of its poor pyrogenicity and low cetane number, it is an undesirable component for diesel. If polycyclic aromatic hydrocarbons are contained in the lubricating oil, its viscosity and temperature will be significantly deteriorated, so it should be removed as much as possible. In addition, aromatic hydrocarbons have good dissolving power for organic substances, so some solvent oils need to have an appropriate content, but because of their high toxicity, the content should be controlled. [6]
4. Unsaturated hydrocarbons Unsaturated hydrocarbons have very little content in petroleum and are mainly produced during secondary processing. Thermal cracking products contain more unsaturated hydrocarbons, mainly olefins, and a small amount of diolefins, but no alkynes. [6]
The molecular structure of alkenes is similar to that of alkanes, that is, straight or branched. But olefins have divalent bonds between the carbon atoms. Any hydrocarbon containing a bivalent bond between carbon atoms in a molecular structure is called an olefin, and the molecular formula includes C n H 2n , C n H 2n-2 and the like. There are two pairs of carbon atoms in the molecule with a double bond, which is called diene. [6]
Olefins have poor chemical stability and are easily oxidized to form gums, but have higher octane numbers and lower freezing points. Therefore, thermal cracked fractions (containing olefins and diolefins) are sometimes blended into gasoline to increase its octane number; blended into diesel oil to lower its freezing point. However, due to the poor stability of olefins, such blended products are not suitable for long-term storage. Anti-oxidants and anti-gelling agents should be added to gasoline blended with thermal cracking fractions. [6]
Petroleum non-hydrocarbon compounds
Although the content of non-hydrocarbon compounds in petroleum is small, most of them have great harm to petroleum refining and product quality, and are harmful components of fuel and lubricating oil, so they should be removed as much as possible during the refining process. The main non-hydrocarbon compounds are sulfur compounds, oxides, nitrogen compounds, colloids and asphaltenes. [6]
Petroleum classification
There are several main methods of oil classification. [6]
1.Industrial Classification
In the industry, petroleum is usually divided into four categories according to its relative density, as listed in the following table. [6]
| Industrial Classification of Petroleum |
| Relative density | Less than 0.830 | 0.830 ~ 0.904 | 0.904 ~ 0.966 | Greater than 0.966 |
| Industry Classification | Light oil | Medium oil | Heavy oil | Extra heavy oil |
Commodity classification
(1) Classification by sulfur content According to the difference of sulfur content, petroleum can be divided into three types, as listed in the table below. [6]
| Classification of Petroleum by Sulfur Content |
| Sulfur content (%) | Less than 0.5 | 0.5 ~ 2.0 | Greater than 2.0 |
| classification | Low sulfur oil | Sulfur oil | High sulfur oil |
(2) Classification by wax content
Generally, a fraction is taken out from petroleum, and its viscosity value is 53 mm 2 / s (50 ° C.), and then its freezing point is measured. When the freezing point is lower than -6 , it is called low wax petroleum; when the freezing point is between -15 ~ -20 , it is called waxy petroleum; when the freezing point is greater than 21 , it is called polywax petroleum. [6]
(3) Classified by colloid
Divided by gum content in heavy oil (fractions with a boiling point above 300 ° C). The gelatinous mass is less than 17%, which is called low colloidal petroleum; the gelatinous mass is between 18% and 35%, which is called colloidal petroleum; the gelatinous mass is greater than 35%, which is called polygliatic petroleum. [6]
3.Chemical classification
Chemical classification is based on the difference of the characteristic factor values, see the table below. [6]
| Chemical classification of petroleum |
| Characteristic factor value | Greater than 12.15 | 11.5 ~ 12.15 | 10.5 ~ 11.5 |
| classification | Paraffin-based petroleum | Intermediate base oil | Naphthenic petroleum |
| Features | Contains more paraffin, high freezing point | Contains a certain number of alkanes, naphthenes and aromatics | It contains more naphthenes and has a lower freezing point. |
Early use of oil
As early as the 10th century BC, ancient civilizations such as ancient Egypt, Babylon, and India had collected natural asphalt for construction, corrosion protection, bonding, decoration, and pharmaceuticals. The ancient Egyptians could even estimate the amount of oil exuding from oil seedlings . Cuneiform text also describes the collection of natural oil along the Dead Sea coast. "It cemented the high walls of Jericho and Babylon, and Noah's Ark and Moses' baskets might have been waterproofed with bituminous seams, as was customary at the time." [3]
In the 5th century AD, hand-dug oil wells appeared near Susa, the capital of the Persian Empire. The earliest use of oil for war was also in the Middle East. The book "Petroleum, Money, Power" states that Homer's famous book "Iliad" states that "Trojans kept throwing fire on the Clippers, and the ships suddenly raised an unextinguishable flame." [3]
In the 7th century AD, the Byzantines mixed oil and lime, ignited them and fired long shots with arrows, or threw them with their hands to attack enemy ships. The Baku region of Azerbaijan is rich in oil and air seedlings. Residents here have collected oil from the oil seedlings as fuel for a long time, and are also used to treat camel skin diseases. In 1837, there were 52 man-made oil pits, which increased to 82 in 1827, but the output was small. [3]
Europe has had records of oil seeping from the ground since the Middle Ages, from Bavaria in Germany, Sicily and Po Valley in Italy to Galicia in Poland and Romania. In the 1840s and 1950s, a pharmacist in Lviv made a kerosene lamp with the help of a blacksmith. In 1854, kerosene for lamps had become a commodity on the Vienna market. In 1859, Europe produced 36,000 barrels of oil, mainly from Galicia and Romania. [3]
China is also one of the first countries in the world to discover and use oil. The Han Book by Ban Gu (32-92 AD) in the Eastern Han Dynasty recorded "High slaves" Chinese ancient oil well
The water is combustible. "Gao Nu is near Yanchang, Shaanxi. The water is a tributary of the Yanhe River." There is fertilizer on the water, which can be used. " "It refers to petroleum. Until around 863 AD, Duan Chengwu's" Poyang Miscellaneous Poems "in the Tang Dynasty recorded" Gannu County Shizhi water, watery greasy water, such as lacquer, lit with a lamp, extremely bright. "West Jin "The Museum of Natural History" (completed in 267) and "Shui Jing Zhu" both recorded "the spring water from Nanshan, Yanshou County, Jiuquan, Gansu Province," there is water with fat, such as gravy. The burning is very bright, and it is no different from the ointment. The ointment and the water urn are very good. [3]
Shen Kuo, from the Chinese Song Dynasty, read the phrase "the water is burnt in Gaonu County," and felt strange. How could "water" burn? He decided to conduct a field trip. During the inspection, Shen Kuo found a brown liquid, which the locals called "shiqi" and "shizhi", and used it to cook for cooking, lighting and heating. Shen Kuo figured out the nature and use of this liquid, gave it a new name, petroleum, and pointed out that "oil is the most abundant in the earth." And mobilize the people to promote the use, thereby reducing the felling of trees. Shen Kuo wrote in his book Mengxi Bi Tan: "There is oil in the territory of Yan and Yan ... it looks like Chunqi and burns like sesame, but the smoke is very thick and the curtain is very dark ... this thing will be big later He has lived in the world since the beginning. He built oil at most and was born in the ground infinitely. It would be exhausted if pine wood sometimes. "He tried to make ink with soot produced by the burning of petroleum. . Shen Kuo discovered oil and predicted that "this thing will prevail in the world" is very rare. [3]
In the Yuan Dynasty, "Yuan Yi Tong Zhi" stated that "Yanying River in the south of Yanchang County had a well drilled with oil, and its oil was flammable. It also treated ringworm of six animals. It was one hundred and one hundred pounds. It was 80 miles northwest of Yanchuan County There is a well in Yongping Village, which is four hundred catties a year old, and the entrance to Yanfeng Library. " He also said, "Petroleum is drawn from the water in the stone well in Yaoqu Village, West Twenty Miles, Yijun County. Although the gas is smelly and smelly, it can cure camel, sheep, and bovine ringworm." It is explained that about 800 years ago, northern Shaanxi had Officially dug wells for oil production, its use has been expanded to treat livestock skin diseases, and it has been officially acquired and put into storage. [3]
Petroleum resources distribution
Petroleum World Petroleum Resources Distribution
On the national stage, as an important resource, strategic reserves have always attracted attention from various countries, and oil has been the fuse of many major wars in history. Below are the top ten countries in the world's oil reserves in 2018. [8]
1. Venezuela
Proved oil reserves: 296.5 billion barrels
Percentage of global reserves: 14.35%
Daily oil production: 2.38 million barrels
Daily oil consumption: 746,000 barrels
Daily oil exports to the United States: 759,000 barrels
Venezuela is an important oil producer and exporter in the world. Based on its daily consumption of 746,000 barrels, its storage can be used for 775 years without considering the increase in consumption such as other exports. The petroleum industry is its economic lifeline, and this income accounts for about 80% of Venezuelan export revenue. [8]
2.Saudi Arabia
Proved oil reserves: 262.6 billion barrels
Percentage of global reserves: 17.85%
Daily oil production: 10.52 million barrels
Daily oil consumption: 2.64 million barrels
Daily oil exports to the United States: 1.47 million barrels
Saudi Arabia has the world's largest oil reserves, and 90% of its country's economy comes from exporting petroleum fuels, a veritable "oil kingdom." Without considering the growth of other exports and other consumption factors, its storage can be used for 273 years. [8]
3.Canada
Proved oil reserves: 175.2 billion barrels
Percentage of global reserves: 11.91%
Daily oil production: 3.48 million barrels
Daily oil consumption: 2.21 million barrels
Daily oil exports to the United States: 2.32 million barrels
Canada's oil reserves are among the highest in the world, but many people think of oil only in the Middle East. In fact, because of the protection of natural resources, Canada has not excessively exploited oil, and more than 97% of Canadian oil Oil is oil sands, and most of it is used for export. Without considering the growth of other exports and other factors, its oil storage can be used for 217 years. [8]
4.Iran
Proved oil reserves: 137 billion barrels
Percentage of global reserves: 9.31%
Daily oil production: 4.25 million barrels
Daily oil consumption: 1.85 million barrels
Daily oil exports to the United States: 0
Iran has always been a big oil country in our impression. In fact, Iran is the fourth largest oil producer in the world and the second largest oil exporter of OPEC. Its national industry is mainly based on oil extraction. It mainly uses oil as its main source. It can be said that oil revenue accounts for more than half of the total foreign revenue of Iran. Iran's oil can be used for 202 years without considering the growth of other exports and other consumption factors. [8]
5. Iraq
Proved oil reserves: 115 billion barrels
Percentage of global reserves: 7.82%
Daily oil production: 2.64 million barrels
Daily oil consumption: 694,000 barrels
Daily oil exports to the United States: 403,000 barrels
Iraq has abundant oil resources, and its crude oil reserves are ranked fourth in the world. In Iraq, oil is the country's economic pillar. Industry is also mainly related to oil. 70% of natural gas is associated with oil. Most of the oil extraction factories have been shut down due to the Iraq war, and the oil export volume has also been affected to some extent. Without considering the growth of other exports and other consumption factors, its storage can be used for 453 years. [8]
6. Kuwait
Proved oil reserves: 104 billion barrels
Percent of global reserves: 7.07%
Daily oil production: 2.45 million barrels
Daily oil consumption: 354,000 barrels
Daily oil exports to the United States: 145,000 barrels
Kuwait is rich in oil and natural gas resources. The mainstay of the nation's economy is mainly oil exports and natural gas. It is a major oil country in the entire Middle East Gulf region. The output value of oil and natural gas accounts for 45% of GDP. Kuwait develops the oil industry on the one hand, and on the other hand, in order to reduce its dependence on oil, Kuwait emphasizes the development of multiple economies and continuously increases foreign investment. Kuwait's oil can be used for 453 years without considering the growth of other exports and other consumption factors. [8]
7. China
Proved oil reserves: 101.5 billion barrels
Final recoverable oil resources: about 14.5 billion
Daily oil consumption: 4.98 million barrels
Although China has always been known as a "big country of imported crude oil", in fact, our country's oil resources are actually very rich. Although large oil fields have been discovered, due to technical and time issues, the amount of extraction may not be very large, and to maintain stability Therefore, a large amount of crude oil has been imported. According to China's current daily consumption level of 4.98 million barrels, it can be used for about 56 years. [8]
8. UAE
Proved oil reserves: 97.8 billion barrels
Percent of global reserves: 6.65%
Daily oil production: 2.81 million barrels
Daily oil consumption: 545,000 barrels
Daily oil exports to the United States: 10,000 barrels
The UAE's industry is mainly based on the petrochemical industry. In 1962, it became the fifth largest crude oil exporter in the world and the second largest crude oil producer in the Arab world. For its use for 491 years, and in recent years, the UAE is also considering diversification and reducing its dependence on oil. [8]
9. Russia
Proved oil reserves: 60 billion barrels
Percentage of global reserves: 4.08%
Daily oil production: 10.27 million barrels
Daily oil consumption: 2.2 million barrels
Daily oil exports to the United States: 275,000 barrels
Russia is a country with vast land and natural resources. It is the country with the richest natural resources in the world, and its oil reserves are also very rich. Its storage can be used for 74 years without considering the growth of other exports and other consumption factors. Although Russia's oil has suffered from falling oil prices and international sanctions, Russia's oil exploration prospects are not as good as before, but it is undeniable that it is still one of the world's most oil-rich countries. [8]
10.Libya
Oil (5 photos)
Proved oil reserves: 44.3 billion barrels
Percent of global reserves: 3.15%
Daily oil production: 1.79 million barrels
Daily oil consumption: 289,000 barrels
Daily oil exports to the United States: 71,000 barrels
Libya is also a big oil country. It once relied on rich oil resources and rich Africa. However, due to the turbulent and unstable situation, Libya's export oil has decreased to a certain extent. Oil is the lifeline and main pillar of Libya's economy. The country's industry is also mainly dependent on Oil to develop. [8]
China's petroleum resources distribution
China's oil resources are concentrated in the Bohai Bay, Songliao, Tarim, Ordos, Junggar, Pearl River Estuary, Qaidam and the eight basins of the East China Sea shelf; natural gas resources are concentrated in Tarim, Sichuan, Ordos, the East China Sea shelf, Qaidam, Songliao , Yinggehai, Southeast Qiong, and the nine major basins of the Bohai Bay. [2]
From the perspective of resource depth distribution, 80% of China's petroleum recoverable resources are concentrated in the shallow (<2000m) and medium-deep (2000m ~ 3500m), while the deep (3500m ~ 4500m) and ultra-deep (<4500 M) distribution is relatively small; natural gas resources are relatively evenly distributed in shallow, medium-deep, deep and ultra-deep layers. [2]
From the perspective of geographical distribution, 76% of China's recoverable petroleum resources are distributed in the plains, shallow seas, Gobi, and deserts, and 74% of the recoverable natural gas resources are distributed in shallow seas, deserts, mountains, plains, and Gobi. [2]
In terms of resource grade, high-quality resources in China's petroleum recoverable resources account for 63%, low-permeability resources account for 28%, and heavy oil accounts for 9%; natural gas recoverable resources account for 76% of high-quality resources, and low-permeability resources account for 24%. [2]
As of the end of 2017, the country's cumulative proved geological reserves of petroleum were 38.965 billion tons, the remaining technologically recoverable reserves were 3.542 billion tons, and the remaining economically recoverable reserves were 2.533 billion tons. [9]
Since the early 1950s, China has carried out oil and gas exploration in 82 major large and medium-sized sedimentary basins and found more than 500 oil fields. The following are the main oil producing areas in China. [2]
1.Northeast China
Daqing Oilfield:
It is located in the west of Heilongjiang Province, in the middle of the Songnen Plain, and is located in Harbin and Qiqihar. The oil field is 140 kilometers long from north to south, 70 kilometers wide from east to west, with a total area of 5,470 square kilometers. In March 1960, the CPC Central Committee approved the launch of the oil battle. In 1963, a production capacity of 6 million tons was formed. In that year, 4.39 million tons of oil was produced, which played a decisive role in achieving self-sufficiency in China's oil industry. In 1976, oil production exceeded 50 million tons and became China's largest oil field. Because of the new technology and technology adopted in Daqing Oilfield, the oil output has remained above 40 million tons. [2]
Daqing Oilfield has accumulated 5.67 billion tons of proven petroleum geological reserves. As of December 31, 2017, Daqing Oilfield produced 39.50279 million tons of crude oil throughout the year, of which domestic output was 34.002279 million tons, overseas equity output was 5.52 million tons, and natural gas production was 4.0321 trillion cubic meters The annual oil and gas equivalent reached 427.185 million tons. The Daqing Oilfield Revitalization and Development Outline proposes that oil and gas production equivalents will remain above 40 million tons by 2019 and reach 45 million tons by 2030. [10]
Shengli Oilfield:
Located in the Yellow River Delta on the coast of the Bohai Sea in northern Shandong, it is mainly distributed in 28 counties (districts) in 8 cities including Dongying, Binzhou, Dezhou, Jinan, Weifang, Zibo, Liaocheng, and Yantai. [2] By the end of 2017, Shengli Oilfield had accumulated 5.387 billion tons of proven petroleum geological reserves, 267.61 billion cubic meters of proven natural gas reserves, and produced 1.087 billion tons of crude oil. [10]
Liaohe Oilfield:
The country's largest heavy oil and high condensate oil production base. It is mainly distributed in the plains of the middle and upper reaches of the Liaohe River and the beaches of eastern Inner Mongolia and Liaodong Bay. 26 oilfields have been developed and built, including 9 major production bases including Xinglongtai, Shuguang, Huanxiling, Jinzhou, Gaosheng, Shenyang, Ciyuyu, Lengjia, and Kerqin, covering 13 cities (regions) and 32 counties in Liaoning Province and Inner Mongolia (Banner) with a total area of 100,000 square kilometers. [2] In 2017, crude oil production capacity was 10 million tons, and natural gas production capacity was 700 million cubic meters.
Jilin Oilfield:
Located in the Fuyu area of Jilin Province, oil and gas exploration and development began in two major basins in Jilin Province. As of the end of 2017, 18 oilfields have been discovered and proven, of which Fuyu and Xinmin oilfields are large oilfields with reserves exceeding 100 million tons. Production has reached an annual output of more than 3.5 million tons of crude oil, forming a production scale of over 700,000 tons of crude oil processing capacity. [10]
2. North China
North China Oilfield:
Renqiu City, located in the Jizhong Plain of central Hebei Province, includes oil and gas production areas in Beijing, Hebei, Shanxi and Mongolia. In 1975, a exploratory well Ren 4 on the Jizhong Plain spewed out 1,000 tons of high-yield industrial oil flow, and discovered the largest carbonate rock in Renqiu oil field in China. In 1978, the oil output reached 17.23 million tons, which made an important contribution to the national oil output exceeding 100 million tons that year. Until 1986, it had maintained an annual output of 10 million tons of oil for 10 years. In 2012, oil output was about 4 million tons. [2] At the end of 2017, the crude oil production capacity was more than 4.5 million tons, and the natural gas production capacity was more than 600 million cubic meters. [10]
Dagang Oilfield:
It is located in Dagang District, Tianjin, and has a vast exploration area, including Dagang Exploration Area and Xinjiang Urdus Basin. The total exploration area is 34629 square kilometers, of which 18628 square kilometers is Dagang Exploration Area. At present, 24 development zones of 15 oil and gas fields have been completed and put into operation in Dagang Exploration Area, with an annual production capacity of 4.3 million tons of oil and 380 million cubic meters of natural gas. Hundreds of millions of tons of oil-bearing structures such as the Kilometer Bridge were also discovered, opening up new oil and gas zones for increasing reserves and production in old oilfields. [2]
Zhongyuan Oilfield:
Zhongyuan Oilfield: It is located in the Puyang area of Henan Province. It was discovered in 1975. After 20 years of exploration and development, it has accumulated 455 million tons of proven petroleum geological reserves, 39.57 billion cubic meters of proven natural gas reserves and accumulated 77.23 million tons of petroleum And 13.38 billion cubic meters of natural gas. Now it is one of the important oil and gas production bases in eastern China. [2]
Henan Oilfield:
Located in the Nanyang Basin in southwestern Henan, the mining area spans the three cities of Nanyang, Zhumadian, Pingdingshan, and Yuzhou, and is distributed in 8 counties including Xinye, Tanghe, and Yuzhou. A total of 14 oil fields have been found, with proven oil geological reserves of 170 million tons and oil-bearing area of 117.9 square kilometers. [2]
Jiangsu Oilfield:
The oil area is mainly distributed in 8 counties and cities in 4 regions of Yangzhou, Yancheng, Huaiyin, and Zhenjiang in Jiangsu, and 22 oil and gas fields have been developed. The main target for exploration in 2012 was the Dongtai Depression in the Subei Basin. [2]
3. Northwest Territories
Karamay Oilfield:
Located in Karamay, Xinjiang. In the past 40 years, 19 oil and gas fields have been found in the Junggar Basin and the Tarim Basin, with Karamay as the mainstay, 15 oil and gas fields have been developed, and the supporting production capacity of 7.92 million tons of oil has been completed (6.031 million tons of thin oil and 1.889 million tons of heavy oil). Since the beginning of the year, onshore oil production ranks fourth in the country. [2]
On November 30, 2017, PetroChina Xinjiang Oilfield Company announced that after more than ten years of exploration and research, a billion-ton conglomerate oilfield was discovered in the Mahu area of the Junggar Basin. It is estimated that by 2020, the crude oil output of the oilfield will further increase to 13 million tons and the oil and gas equivalent will reach 15 million tons, which will continue to make important contributions to the economic and social development of the country and Xinjiang. [10]
Tarim Oilfield:
Located in the Tarim Basin in southern Xinjiang. It is 1,400 kilometers long from east to west, and 520 kilometers widest from north to south, with a total area of 560,000 square kilometers. It is China's largest and inland basin. In the middle is the Taklimakan Desert, known as the "Sea of Death." In 1988, after a high-yield gas flow was ejected from Well Lunan 2, after 7 years of exploration, 9 large and medium-sized oil and gas fields and 26 oil-bearing structures have been identified. The cumulative proven oil and gas geological reserves are 378 million tons, with an annual output of 5 million tons of oil. ; 1 million tons of condensate, 2.5 billion cubic meters of natural gas resource guarantee. [2]
In the first half of 2017, the Tarim Oilfield put forward the goal of constructing 30 million tons of world-class large-scale oil and gas fields by 2020 with high quality and high efficiency. The oilfield also aims to produce 30 billion cubic meters of gas per year and maintain 6 million tons of crude oil per year. Stable production and build first-class large oil and gas fields with international advanced level. [11]
Tuha Oilfield:
Located in Turpan and Hami Basin, Xinjiang, it is responsible for oil exploration in Turpan and Hami Basin. The basin is 600 kilometers long from east to west and 130 kilometers wide from north to south, with an area of about 53,000 square kilometers. In February 1991, the Turpan Petroleum Exploration and Development Campaign was fully launched. By the end of 1995, 14 oil and gas fields including Shanshan and Wenjisang and 6 oil-bearing structures had been discovered with a proven oil-bearing area of 178.1 square kilometers, with cumulative proven geological reserves of 208 million tons and natural gas reserves of 71.3 billion cubic meters. [2]
Yumen Oilfield:
It is located in Yumen City, Gansu Province, with a total area of 114.37 square kilometers. The oilfield was put into development in 1939. In 1959, oil production reached 1.4029 million tons, accounting for 50.9 of the country's oil production. It has created excellent results of stable production of 600,000 tons in the 1970s and 10 years of stable production of 500,000 tons in the 1980s. Known as the cradle of China's petroleum industry. [2]
In 2017, oilfield crude oil production was 402,000 tons, crude oil processing was 20,930 tons, profit was 424 million, power generation was 58903 million kWh, power supply was 55.114 million kWh, engineering and technical services had significant effects of reducing losses and turning losses into losses, and fully completed annual production Business mission. [12]
Changqing Oilfield:
Changqing Oilfield: The exploration area is mainly in the Shaanxi-Gansu-Ningxia Basin, with a total exploration area of about 370,000 square kilometers. Oil and gas exploration, development and construction began in 1970. 22 oil and gas fields have been found, including 19 oil fields. The cumulative proven oil and gas geological reserves are 541.888 million tons (including the proven natural gas reserves of 233.008 billion cubic meters). It has become China's main natural gas production area , And become the main transportation base of Beijing natural gas. Changqing Oilfield has become China's important energy base and the main battlefield of oil and gas production. [2]
As of the end of 2017, the Changqing Oilfield had accumulated proven petroleum geological reserves of more than 4.8 billion tons, and the newly-increased proven oil reserves of more than 300 million tons for seven consecutive years, and newly discovered two gas fields, Yichuan and Huanglong, which strongly supported China Petroleum Reserve Project. [10]
Qinghai Oilfield:
Located in the Qaidam Basin in the northwest of Qinghai Province. The area of the basin is about 250,000 square kilometers, and the sedimentary area is 120,000 square kilometers. The Mesozoic and Cenozoic sedimentary area with oil and gas prospects is about 96,000 square kilometers. 16 proved oilfields and 6 gas fields. [2]
On April 15, 2018, PetroChina Qinghai Oilfield held a press conference in Dunhuang, announcing that after more than a thousand scientific and technological workers spent 10 years, breaking through the geological understanding forbidden zone, it made a major breakthrough in petroleum geological theory and exploration technology, and made major discoveries in oil and gas exploration. Oil and gas resources increased from 4.65 billion tons to 7.03 billion tons. Five consecutive 100 million-ton oil and gas fields were discovered in succession, with an additional proven oil and gas reserves of 460 million tons. Oil and gas production rose from 4.19 million tons to 7.38 million tons. [13]
4.Southwest China
Sichuan Oilfield:
Located in the Sichuan Basin, with a history of 60 years, 12 oil fields have been discovered. Four gas regions in the south, southwest, northwest and east are built in the basin. Natural gas production accounts for nearly half of the country's total, making it China's largest gas field. [2]
At the end of 2017, the natural gas resources in the basin were 7.2 trillion cubic meters, making it the country's largest natural gas industrial base. China's first natural gas production area exceeded 10 billion gas. [10]
5.Central and South China
Jianghan Oilfield:
It is an important comprehensive oil base in central and southern China. The oil field is mainly distributed in 7 cities and counties including Qianjiang and Jingsha in Hubei Province, Shouguang City, Guangrao County in Shandong Province, and Hengyang City in Hunan Province. Twenty-four oil and gas fields have been discovered, with a proven oil-bearing area of 139.6 square kilometers and a gas-bearing area of 71.04 square kilometers. A total of 21.187 million tons of oil and 954 million cubic meters of natural gas have been produced. [2]
The third national resource assessment predicted that the region's petroleum resources amounted to 93.56 million tons. As of 2015, the accumulated proven reserves were 19.23885 million tons, and the proven rate of resources was only 20.6%. [14]
Cause of oil production
The theory of bio-oil formation (Lomonosov hypothesis)
oil
Studies show that it takes at least 2 million years for oil to be produced, and among the reservoirs that have been discovered today, the oldest is 500 million years. But some oil was produced in the Jurassic. In the long history of the continuous evolution of the earth, there are some "special" periods, such as the Paleozoic and Mesozoic. After the death of a large number of plants and animals, the organic substances that make up their bodies continue to decompose and mix with substances such as sediment or carbonate sediments. Make up the sedimentary layer. Due to the continuous accumulation and thickening of the sediments, the temperature and pressure rise. As this process continues, the sedimentary layers become sedimentary rocks, and then sedimentary basins are formed, which provides a basic geological environment for the generation of petroleum. Most geologists believe that oil, like coal and natural gas, was formed gradually by ancient organisms after long compression and heating. According to this theory, oil is formed by changes in prehistoric marine animals and algae carcasses (land plants generally form coal). Organic matter was mixed with silt after a long geological age and buried under thick sedimentary rocks. Under the high temperature and pressure of the ground, they gradually transform, forming waxy oil shale first, and then degrading into liquid and gaseous hydrocarbons. Because these hydrocarbons are lighter than nearby rocks, they penetrate upwards into nearby rock formations until they penetrate into tightly impermeable rock formations that are inherently empty. The oil gathered in this way forms an oil field. People can get oil from oil fields by drilling and pumping. Geologists call the temperature range over which oil forms. When the temperature is too low, oil cannot be formed, and when the temperature is too high, natural gas is formed. [2]
Non-biological oil formation theory
The theoretical astronomer Thomas Golde of non-biological oil development was developed on the basis of the theory of Russian petroleum geologist Nikolai Kudryavtsev. The theory is that there are already many carbons in the earth's crust, some of which naturally exist as hydrocarbons. Hydrocarbons are lighter than water in rock gaps and therefore penetrate upwards along rock gaps. Biomarkers in petroleum are caused by thermophilic microorganisms that live in rocks. It has nothing to do with oil itself. This theory is only supported by a few people among geologists. It is generally used to explain unexplained oil inflows in some fields, but this phenomenon rarely occurs. [2]
Petroleum oil drilling
In various tasks of oil exploration and oil field development, drilling plays a very important role, such as finding and verifying oil-bearing structures, obtaining industrial oil flow, exploring Offshore oil exploration
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New oil fields were discovered in 1910 in Canada (especially Alberta), the Netherlands East India, Persia, Peru, Venezuela and Mexico. These oil fields are all industrialized. [4]
Offshore oil rigs and onshore oil depots in Vietnam
Until the mid-1950s, coal was still the world's most important fuel, but oil consumption increased rapidly. After the energy crisis in 1973 and the energy crisis in 1979, the media began to focus on reporting the extent of oil supply. It also made people realize that oil is a finite raw material and will eventually run out. But so far all attempts to predict that oil will be exhausted have not been fulfilled, so some people have dismissed this discussion. The future of oil is uncertain. Some people think that because the total amount of oil is limited, the depletion of the prophecies of the 1970s did not happen, but it was only delayed. Others believe that with the development of technology, humans can always find enough sources of cheap hydrocarbons. There are also large oil reserves on the planet, such as tar sands, asphalt, and kerogen shale, which are sufficient to provide future sources of oil. Canadian tar sands and US kerogen shales have been found to contain oil equivalent to all known oil fields. [4]
90% of the transportation energy is obtained from petroleum. Oil transportation is convenient and energy density is high, so it is the most important transportation driving energy. In addition, it is the raw material for many industrial chemical products, so it is one of the most important commodities in the world. In many military conflicts, including World War II and the Gulf War, occupying oil resources was an important factor. [4]
Petroleum petroleum products
Petroleum products have a very wide range of roles and functions in social and economic development. The refined products have penetrated into every aspect of people's lives and have an inseparable relationship. [6]
Petroleum is a mixture of different hydrocarbon compounds. Through one-time processing, simple physical methods of atmospheric pressure and reduced pressure distillation are mainly used to cut petroleum into various petroleum fractions with different boiling points and different densities. Petroleum secondary processing is mainly by chemical methods or chemistry. Physical method-catalytic cracking (catalytic reforming, coking, viscosity reduction, hydrocracking, solvent deasphalting, etc.) to increase the yield of a certain product, increase product variety, and improve product quality. Many chemical products are produced by the third processing of the chemical process. In general, petroleum products can be divided into 6 categories: petroleum fuels, petroleum solvents and chemical raw materials, lubricants, paraffin, petroleum pitch, petroleum coke. Among them, various fuels are close to 90% of the total output; various types of lubricants are the largest, with output accounting for about 5%. Various petroleum products obtained through processing of petroleum have a wide range of different uses in different fields. [6]
After processing and refining petroleum, the products that can be obtained can be roughly divided into four categories:
Petroleum fuel
The most used types of petrol, diesel, kerosene and fuel oil in various petroleum products are widely used in various types of cars, tractors, ships, warships, tanks, aircraft, rockets, boilers, trains, bulldozers, Power machines such as rigs consume the largest amount of petroleum products, so petroleum is known as the blood of industry. [4]
Petroleum fuel is the most used oil. According to its purpose and use range, it can be divided into the following five types:
1. Ignition engine fuels include aviation gasoline, automotive gasoline, and so on.
2. Jet engine fuel (jet fuel) is aviation kerosene.
3 Compression-ignition fuels (diesel fuels) include high-speed, medium-speed, and low-speed diesel.
4 Liquefied petroleum gas fuels are liquid hydrocarbons.
5. Boiler fuels include fuel oil for furnaces and fuel oil for ships. [4]
Petroleum lubricant
Lubricating oil makes all kinds of sliding, rotating and rolling machinery and instruments reduce wear and ensure speed, and plays a role of lubrication, heat dissipation, sealing and insulation.
Lubricating oil and grease are used to reduce friction between parts, protect parts to extend their life and save power. They account for only about 5% of all petroleum products, but they have many varieties. [4]
Petroleum pitch
Asphalt has good cohesiveness, water resistance and corrosion resistance. It is widely used in paving pavements, as anticorrosive and waterproof coatings, and in the manufacture of linoleum and carbon materials. [4]
They are further processed from the production of fuels and lubricants, and their output is about a few percent of the processed oil. [4]
Petroleum solvent
Solvent gasoline is a solvent required by industries such as rubber, paint, leather, linoleum and can be used to wash machines and parts. It is an important basic raw material and intermediate for the organic synthesis industry. [4]
Oil market
The properties of oil and the history of the oil market have really exerted its tremendous power. As British scholar Susan Strinch puts it, an important historical milestone is not the establishment of the Organization of Petroleum Exporting Countries, but the effective intervention of OPEC in the market 10 years later. During this time, the international oil market experienced large-scale turbulence: in 1971, US President Nixon announced that the US dollar was decoupled from gold; in 1973, the international monetary system, the Bretton Woods system, collapsed, becoming an important reason for rising oil prices; Two oil crises broke out in 1973 and 1979; in 1985, oil prices reached a trough. After the establishment of OPEC, oil producing countries gradually nationalized oil assets, and thus controlled the global oil market. The price of oil is dominated by OPEC's official price, and the pricing method is "FOB Persian Gulf plus freight from the Persian Gulf to the delivery place". Arabian light oil replaced West Texas Intermediate oil as the benchmark oil. In the same period, the trading volume of the spot market has been expanding. The 1973-1974 oil supply disruption forced many consumers to buy oil from the spot market, and spot transactions followed. Spot trading initially only accounted for a small proportion of the global oil trade, but by the mid-1980s it had occupied almost half of the global oil trade. The price of spot transactions was initially only a reference for OPEC pricing, and later completely replaced the official OPEC price. In the 1980s, high oil prices led to a substantial reduction in oil demand and excess production capacity. Oil exporting countries (including between OPEC and non-OPEC, and within OPEC) started a battle for their global market share. Saudi Arabia has abandoned its role as a "balanced producer" and has increased production significantly in order to compete for its due market share, which has led to a sharp drop in oil prices. In 1986, the price of oil in the Middle East once fell to $ 6 a barrel, which caused the third crisis of the oil market-this time it is not the consumers who are most affected, but the producers. With the popularity of cars in developed countries, another feature of the 1980s was that transportation became a major oil consumer. The driving season during the holidays and the heating season in winter have caused a large seasonal difference in oil demand, which has led to a closer relationship between oil consumption and economic growth and weather conditions. In the market operation mode, OPEC's administrative pricing is gradually replaced by market prices. It is worth noting that the emergence of oil futures, an oil derivative instrument designed to hedge risk during this period. In 1978, the heating oil futures contract was launched on the New York Mercantile Exchange (NYMEX), becoming the earliest oil futures product. [18]
NYMEX introduced gasoline futures trading in 1981 and West Texas Intermediate Petroleum (WTI) futures trading in 1983. The price of oil futures has become a guide and reference standard for spot trading prices, and has connected the oil market with the financial market. [18]
Development Trend of Petroleum Industry
Oil price
Oil prices are closely related to the state of the global economy, so oil prices are a key price. Some economists say high oil prices have a negative impact on global economic growth. Although high oil prices are generally considered to be caused by economic growth, this shows that the relationship between the two is very unstable. [18]
Because the price of oil reflects the pricing power of the country where the spot and futures markets are located, the meaning of oil prices varies in different periods. For example, the statistical data of oil prices used by BP was the average price of the United States from 1861 to 1944, the price of Arabian light oil from 1945 to 1983, and the spot price of Brent from 1983 to 2008. The oil price fluctuations we are referring to are the forward price changes in the two major futures markets in New York and London. During the war, oil was often used as a "weapon". For example, during World War II, the United States imposed an embargo on Japan. Yamamoto 56 planned to attack the United States Pearl Harbor in order to destroy the US navy forces in the Pacific to protect Japan's oil supply and transportation lines from Southeast Asia. During the oil crisis, OPEC used oil as a weapon to fight back against Western countries, which led to the oil crisis and became the cause of the economic stagnation of Western countries. After the end of the cold war, the era of globalization has arrived. Oil is back to its commodity nature. In short, in the context of peace and development, the political attributes of oil have weakened, economic attributes have become the norm, financial attributes have become more prominent, and oil price fluctuations have become a financial phenomenon. It should be noted that the "oil prices" that we usually hear and broadcast are generally the real-time prices of the New York and London futures markets, and the oil prices used for ex post statistics and research are generally the spot market transaction prices. [18]
Oil trends
In 2014, international oil prices fell sharply, and the world oil and gas industry entered a recession cycle. The "four lows" (low prices, low returns, low investment, and low costs) will become the new characteristics of the oil and gas industry in the new era. [19]
1. Global oil supply and demand will remain loose by 2020
Global oil supply and demand will remain accommodative until 2020. The world economy will still be in a post-crisis recovery period, and the growth rate will not reach the level of prosperity. Especially in emerging economies, growth will slow down, and oil demand will hardly rebound. The Research Institute of Economics and Technology of the China National Petroleum Corporation predicts that by 2020, the average annual growth rate of global oil demand will be 1.1%, and the demand will reach 99 million barrels per day in 2020; the average annual growth rate of global oil supply capacity will be 1.4%, and supply in 2020 The volume will reach 105 million barrels per day, and the supply capacity is higher than the demand of 6 million barrels per day. The main source of supply growth is the resumption of oil production in Libya and the rapid growth of oil production in Iraq. Domestic output will continue to grow rapidly after the United States liberalizes oil exports. Continued low oil prices will severely impact the exploration and development of high-cost unconventional resources such as shale oil and oil sands, but there may be a lag of 2 to 3 years on the impact on oil production. Generally speaking, it will take time for the world's oil supply and demand to reach a new balance. Until then, the loosening of supply and demand is difficult to change. [19]
2. International oil prices will run at a relatively low level before 2020. The overall trend will be low before and high, loose supply and demand fundamentals, and the US dollar entering the appreciation channel will directly suppress international oil prices. According to the calculation results of the International Petroleum Price Forecasting Model of the China Petroleum Corporation's Institute of Economics and Technology, international oil prices will be at a relatively low level by 2020, and the overall level will be difficult to return to more than 100 US dollars / barrel, and the operating range is 40 to 90 US dollars / barrel. In the early stage, the low level was consolidated. In the later stage, with the low oil price affecting the investment of high-cost projects, the supply growth rate fell, and coupled with the low oil price to stimulate demand, the easing of supply and demand will be reversed. [19]
3. In the future, the price difference between light oil and heavy oil will continue to be reduced. Affected by the unconventional oil and gas revolution in North America, the global light oil supply is growing rapidly, but the mismatch in the structure of refinery equipment has resulted in an excess of light oil and the price of light oil Large downward pressure. At the same time, the demand for heavy oil still maintained a certain growth, but the supply growth was slow, and the market supply and demand were relatively tight, supporting the price of heavy oil. Generally speaking, in the next few years, the price difference between light oil and heavy oil will continue to narrow, and the price of heavy oil may even be higher than that of light oil. [19]
4. Asian market will become the focus of competition among oil producing countries. Asian oil demand will continue to grow rapidly. As an important force in the growth of world oil demand, China will become increasingly important in the global demand landscape. In the context of overall loose world supply, declining US dependence on the outside world, and oil exports, more and more oil-producing nations have to turn their attention to Asia, thereby accelerating the eastward shift of world oil trade. In order to compete for market share, competition between traditional oil-producing countries and between non-OPEC countries and OPEC countries will increase. [19]
