Oil, Oil And Gas

3001 Words13 Pages
1.0 Introduction The global economy is ever expanding. With this, the amount of energy required to aid the expansion is always increasing. Currently, majority of the energy produced is from combusting coal, oil and gas. Researches are looking in to diverse methods of harvesting energy to reduce the stress on oil and gas as existing wells of these natural resources, especially oil are emptying fast. New sources found for oil deposit are mostly very deep underground and difficult to be extracted. For this, higher end technologies for drills and more skilled engineers are needed. Both of these increase the cost to obtain oil for oil companies (Mae 2014). As crude oil sources are diminishing, companies find themselves facing sour oil instead…show more content…
Sour crude is considered unstable and must be stabilized by removing hydrogen sulphide gas from the oil before transporting in oil tankers. Usually crude oil is processed and refined to form heavy oil such as diesel and fuel oil to reduce processing cost (Investopedia US, A Division of IAC 2014). The environment is taking a hit because of the expansion of global economy. In pursuit to reduce the destruction caused, government and agency bodies are making laws and regulations to control and reduce emissions from factories, machineries and vehicles. In the vehicle aspect, the type of fuel being combusted in the engines affect the emissions the most. Hence there is a pressure to make oil cleaner and lighter to abide with the regulations. After extensive research, it is found that reducing sulphur content in oil significantly reduces the toxic level of the emission from the vehicle. As the demand for clean oil is higher, the need to remove sulphur from crude oil is at high. However, the market for sulphur is low and not up to par with the production level. It is expected that in the coming five to six years, 11.6 million metric tons per year of sulphur will be recovered from crude refining and natural gas projects. This will increase the sulphur supply and availability by nearly 20%. Refiners and sulphur brokers will face challenges in
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