Wag - when it takes $600B in reserves to explore new deposits, you better make $60B a QTR in profits are you can't afford to drill! Their profits are high because of many reasons, but only short term gains!!! One of which, the frickin' GOM was shut down to drilling for most of 2010 and that money did not get spent - here in LA!

a side note, the company my dad works for had a meeting a few months back with some of the big wigs that he had to attend.

They were upset because they werent making more money than the year before.
they based their standard on the year that had record oil prices and were cutting back the next year because they were not meeting the same profit margin.

its not that they arent making money.

its that they arent making the same amount of money they were making when oil was 140/BBL

i agree with you on this too.

[quote=Finfeatherfur;217539]A BBL of cude oil is 42 USGAL. How much of that 42gals become 87 octane gasoline?

One 42gal gallon barrel of crude oil yields:

19.5 gallons of gasoline
9.2 gallons of distillate fuel oil (diesel fuel and home-heating oil)
4.1 gallons of kerosene-type jet fuel
2.3 gallons of residual fuel oil (used in industry and marine transportation and for election power generation)
1.9 gallons liquefied refinery gases
1.9 gallons still gas
1.8 gallons coke
1.3 gallons asphalt and road oil
1.2 gallons petrochemical feedstock
0.5 gallons lubricants
0.2 gallons kerosene
0.3 gallons other (don't ask me, I have no clue :) )

* The total volume of products made is 2.2 gallons greater than the original 42 gallons of crude oil, representing a processing gain.

Well said. But hey I can understand if you do not work in the oil industry that you would have an issue with the price of gas being 3 $ a gallon.

[quote=evis102;217551] I see Google is your friend!!! Very good research. Now if we were trying to make PCMO, how much of a 55gal drum is crude? I'll save you the time - 35gals. - rest is additives.

Back to my point - do the math - $85/bbl for 19.5 gals of "product". Yes the sell the other stuff off, but their margins plumment on byproduct sales becasue the buyers know it is by-product! Also, the 0.3 gals that you are not sure about is the bad stuff -benzenes, tetras, etc.etc.etc.

[quote=Finfeatherfur;217566]Speaking of cost......Over the past 1-1/2 I have sold several MSAT projects.....where refineries have to reduce their overall benzene pool emissions. Basically, they have add or modify a process unit. Also, in the next several years your electricity bill will be going up due to Carbon Capture & Storage (CCS) projects. This will affect all the coal fired power plants we have in the US. Canada has already moved forward on one. However, here in the states our goverment still has not specified how much carbon needs to be captured. The same process equipment you use in a refinery, gas, or chemical plant is needed for this process.....

We can all get ready to Grab Our Ankles if the new congress doesn't stop the new Cap & Tax administered by the EPA from coming to fruition. It "Cap&Tax" got squached in the last congress so Obammer did an end run with it through the EPA. The Demorats see these end runs as their only alternative to getting their Socaialist agenda implemented now that power is split. We must remember to vote Lame-dreiu out of office in 2012 and any other Demorat, they are all "Socialist" when you peel the skin back.:pissed:

Amen to that! VOTE, VOTE, VOTE!!!!:work::work:

x2

A barrel of oil from one well can produce more gasoline than a barrel from another well.
It depends on the gravity of the oil. There is no set number of gallons per barrel of oil. Low gravity oil produces less products than high gravity crude. Some crudes procude nothing more than asphalt and diesel.
The refineries can produce more or gas per barrel depending on what the demand is for gasoline.
In Europe, they produce more diesel per barrel than gas per barrel. Becuase they consume more diesel over there. Same in South and Central Americal.

Where I work, we produce around 100K bbls. of oil and a little over 100 million cubic ft. of gas per day, lift cost is around $1 per barrel. The more barrels you produce, the lower the lift cost is.
Production cost is different for different wells depending on a lot of different factors. You can get an average per company or average per world production, but not every well is the same.
Smaller companies can have lower cost cause they have less overhead. However, most small companies buy old, lower producing wells because they can produce at a higher profit cause they have lower overhead than big companies.
Big companies have to support office staff all over the world. Smaller companies have to support just one office in one town in one state. Plus the big company already paid for the exploration, drilling and production facilities.

Where I use to work......we had what was called the "Gasoline" and "Fuel Oil" seasons. Starting in the spring time, the Refinery was operated to "Maximaze" the Gasoline production. This refinery could produce up to about 55 % gasoline running Louisiana Light Sweet crude oil.

During the fall, we would switch operation to produce more "Fuel Oil" which is used up north for heating oil during the winter. The gasoline production would be about 45 % of the refinery production.

You are exactly right Ray - but I was trying to keep it simple!!! Now, we will have to explain "Downstream" - "Midstream" - "Upstream" to the peanut gallery!!!!!!! LOL!!!!

Upstream = Exploration/drilling/production
Midstream = pipeline/tanker/railcar/trucking from upstream to downstream
Downstream = refining/distribution/retail

Simple as I can figger.

Between work n fishing 75-100+ gallons / week in my truck.... Truck is a lil over 3 months old n I have 14,000 miles on it :(

With Reforming, Cat Cracking, Unicracking and Cokers even the worst crude gives up gasoline. I asked around the plant and was told for every 3 barrels of crude we get 2 barrels of gasoline and 1 barrel of heavy fuel oil that can be sold as diesel, jet fuel or heating oil. We run very heavy, very sour crude.
Also know that gasoline is not a single cut but a blend of several different things.
Also there is only 87 octane and 93 octane gasoline midgrade is blended at the pump.

At the pump, you mean at the gas station?
It is blended and additives added at the distribution area.
Just a couple of refineries in the area refine all the different branded gas and diesel for our area. The different brands of additives are mixed before loading in the trucks.
We supply a buttload of fuels for Fla. also. Them treehugging bastids don't want raw petroleum products in their state, but they want the refined products, at the same cost that we pay for them.

Just FYI........ The absolute best diesel made today still comes from the little ole' refinery known as Calcasieu Refinery!

Very familiar with the place. They are off Tank Farm road South of LC as you are heading to CAL Point.....99% of the distillation equipment they use to make the diesel was supplied by the company I work for.....;)

I sell them cylinder gases...

Only 87 octane and 93 octane leave the distribution area. Midgrade is blended at the pump.

What's the name of the refinery on Old Town Rd.??

The old Haymark Terminal off of Big Lake Rd. did belong to Shell in the 70's and 80's.
We barged condensate from offshore to that place.

Pelican Refining Co, LLC. 4646 Old Town Road. Lake Charles, LA 70615

Yep. Forgot. I pass it all the time. Looks run down. But still see trucks coming and going over there.

Do they give away free samples over there?

They do something like 10m bbls per day. All light ends I think. Nothing heavy at all

I got a free sample for you! ;):eek:

One of the gates has a sign that says "Asphault trucks only".
Place is rusted. No paint nowhere I can see from the road.

Well, it used to be light stuff. :confused::redface::confused:

That little plant is just a couple of miles [as the crow flies] from my house, and it scares me to think they are a refinery. The plant was shut down for a while, then a couple of years ago it was bought by someone. In a few months they fixed it [????] and got it running.

I see "Red" tanker trucks fairly often on hwy 171 headed that direction.

I don't know anything about the operation.
I know if we were rusted that bad, the gov't wouldn't let us run.