After you read Petroleum Marketing

Crude oil, natural gas, refined products, and petrochemicals are sold into commodity markets. Commodities are mass-produced, unspecialized products, with high fungibility, having characteristics so similar that they are interchangeable. For example, light sweet crude oil is fungible because a barrel produced in West Texas and one produced in Saudi Arabia would produce similar mixes of products if processed in the same refinery.

Taking a broad view of petroleum marketing, it involves

Transporting the product to a point where custody transfer is feasible

• Providing storage facilities where necessary

• Balancing production and demand

• Obtaining the best possible price

Chapter II

Text 10

New Operation Strategies in Heavy Crude Pipeline will Increase Profit Margin

An engineering study for a heavy–oil pipeline in Venezuela has confirmed the design of optimizing the temperature of crude entering the pipeline to levels that will increase throughput and reduce the size of the heaters at the pump station.

The study found that throughput for heavy crude pipelines is not necessarily a simple function of crude inlet temperature as common as believed in normal crude pipelines.

Varying the pipeline inlet temperature for each type of crude enables the optimization of pipeline capacity and minimizes heating costs.

Of four heating schemes evaluated, one yielded the lowest heater capital and fuel costs. This operational procedure required delicate control of crude temperature to balance heating and pumping performances. Heater installation and annual operating costs could be reduced by 25% to 60% in comparison with other evaluated operating procedures.

With significant reduction in equipment capitals cost and increased operating profit found in this study, the use of such new operating strategies is highly attractive. Potential profits by operating the pipeline in this new procedure should be explored by pipeline operators and designers.

A simple test program should be conducted to establish the flow-temperature relationship for various crude oils.

Questions:

1. What has engineering study for a heavy-oil pipeline confirmed?

2. The operation produce required delicate control of crude temperature, didn’t it?

3. What should be explored by pipeline operators and designers?

4. Could installation and annual operating costs be reduced in comparison with other evaluated operating procedures?

5. What should be conducted to establish the flow – temperature relationship for various crude oils?

10.1 What is the main idea of the article?

10.2 Explain the following words or words-combinations.

Inlet, throughput, heavy crude pipelines, profit margin, heater installation

10.3 Choose the necessary word and put it in the sentence.

… and annual operating costs be reduced by 25% to 60 %. This operational procedure required delicate control of … to balance heating and pumping performances. The study found that … for heavy crude pipelines is not necessarily a simple function of crude inlet temperature. An engineering study has confirmed the design that will increase throughput and reduce the size of the … at the pump station. … by operating the pipeline should be explored by pipeline operators and designers. A simple test program should be conducted to establish the flow – temperature relationship for various … .

crude temperature throughput potential profits crude oils design capacity heater installation heaters