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Our Reflections

Why is it so important to improve efficiency in heavy crude oil extraction, treatment, and refining process?

By 31 de May de 2021September 28th, 2021No Comments

Oil is popularly known for its price volatility. We have always been used to reading news about the evolution and changes in oil prices, their adjustments, and influences by external actors. However, are we aware of the inherent aspects of crude oil itself, the extraction, treatment, and refining of heavy and light crude, its processes and commercialization, and how all this affects its value?

Beyond the influence that international relations, commercial interests, and the dependence on the demand for crude oil at a global level may have, the price of oil has historically also depended on its quality in terms of density, highlighting that the lighter it is, the higher the profit margin for the different marketers. Equally and logically, this margin depends on the final quality of the expected product or by-product, but what happens then with heavy crude oil? Does it have a different price?

The main focus is on the differences in production costs and the processing costs to reach the quality levels necessary for the crude to be marketed. Generally, heavy crudes require a higher degree of refining and upgrading. Thus, as the quality of crude oil decreases, more energy is needed to convert it into products with higher commercial value.

Following this idea, if we understand that the net energy value of heavy oil considers the total energy required at each stage of the production process until its refining, we understand the possible decrease in the profit margin and price volatility. From Nakasawa Resources, we are committed to incorporating technologies to make these processes more efficient and therefore more profitable, reducing energy consumption and associated costs in this delicate production cycle.