Dilemma for high-tech refiners

Journal Article · Wed Oct 17 04:00:00 EDT 1984 · Energy Detente; (United States)

OSTI ID:6609187

The price difference between lighter and heavier crude oils, and between light and heavy refined products, amounts to the incentive for refiners to upgrade processing facilities. When that differential widens, the incentive to utilize lower price, lower quality crude is enhanced; when it narrows, the desirability of relying on light oil prices and supplies is intensified. The incentive to upgrade has been eroded ever since 1981 ushered in world-wide overproduction of crude oil. Lower demand due to recession met with increased pressure on producers to compete for market shares to maintain vital revenue levels - for private and national oil companies alike. Light crude prices suffered, while heavy crude prices improved. As of mid-1984, the shrinkage of the price differential went into dormancy (see Energy Detente 8/8/84, A Hey-Day for Heavy Crudes) after both Mexico and Venezuela raised heavy oil prices by US $0.50 per barrel (bbl). Energy Detente refining netback data for the first half of October are presented for the US Gulf Coast and the US West Coast. The fuel price/tax series and the industrial fuel prices for October 1984 are included for countries of the Eastern Hemisphere.

• OSTI ID: 6609187
• Journal Information: Energy Detente; (United States), Journal Name: Energy Detente; (United States) Vol. 5:19; ISSN EDETD
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020400* -- Petroleum-- Processing
29 ENERGY PLANNING, POLICY, AND ECONOMY
294002 -- Energy Planning & Policy-- Petroleum
CARBONACEOUS MATERIALS
COAL
DATA
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
INDUSTRIAL PLANTS
INFORMATION
MATERIALS
NATURAL GAS
NUMERICAL DATA
OPERATION
PETROLEUM
PETROLEUM PRODUCTS
PETROLEUM REFINERIES
PRICES
STATISTICAL DATA
TAXES
VISCOSITY