Oil struck near Jhelum

[Shabaz Sharif]

It is not only about extracting crude oil, I am not sure about the current status of oil refineries in Pakistan but I am hopeful that adding another 5000 barrels in their installed capacity shouldn't be a great deal (I know there are 1-2 large refineries under construction) so lets suppose we are going to utlise the maximum potential of 5000 barrels a day. It's going to raise the daily domestic production from around 65,000 barrels a day to 70,000 barrels a day. Now consider our daily consumption of around 450,000 barrels a day. Not much difference isn't it?

65,000bpd is old news now

Pakistan Oil production surges to 100,000 barrels per day

 

[faisal7]

[assalam o alikum...sorry to interfere in this post,,,i dont know how to start a new post,,,can u please help me out in this matter.....i have some questions to ask from you people....plx let me know where to start....again forgive me for my this act...plz guide me....thanks]

 

[FunkyGen]

oh bhai tujhe English samajh nahin aati

Please rephrase what you said.....

 

[niaz]

The Sweet and Sour Economics of Refining

It’s important that investors understand what they are buying. The biggest gains I’ve made over the years were in companies whose business I understood well. The biggest losses have been in companies that I didn’t understand nearly as well.

During the tech stock bubble from 1997 to 2000, a lot of people – including me – made and then lost money on companies we didn’t really understand. I wasn’t sure exactly what JDS Uniphase (NasdaqGS: JDSU) did, but I did know that the talking heads on CNBC and at MSN Money believed that the sky was the limit.

But I didn’t understand its business. Who were the competitors? What were the threats? I didn’t really know and over time it became very clear to me that I was simply gambling, not investing. I was taking the advice of people who in many cases didn’t understand these businesses themselves, but who had an impressive track record primarily because they had been making their recommendations during a bull market for technology stocks. When the stock price of JDSU started to fall, I was uncertain whether to sell, because I didn’t really understand the long-term prospects.

With that in mind, US refiners have been on a hot streak lately. In the past three months the share prices of Valero Energy (NYSE: VLO), Tesoro (NYSE: TSO), and Marathon Petroleum (NYSE: MPC) (all of which have been recommended here) have appreciated by 61%, 44%, and 52% respectively.

But oil refining has historically been a highly cyclical business. Get in at the right time and you can make a lot of money quickly. Get in at the wrong time and you can lose a lot just as quickly. This is why I caution against buying a refiner if you prefer to buy a stock for the next five years. I would have no major concerns about holding a large integrated oil company like Chevron (NYSE: CVX) for that long, but the refiners require much closer monitoring.

So let’s examine the refining industry in some detail. Oil refiners convert crude oil into finished products such as gasoline, diesel, jet fuel, fuel oil and asphalt. But there can be significant differences among refiners. Recently we have seen refiners in the Midwest and on the Gulf Coast making record profits, while those on the East Coast are going bankrupt. The separator is generally the type of crude oil the refinery can process, which is a function of logistics and equipment.

When a refinery purchases crude oil the key piece of information, besides price, is what the crude oil assay – or composition analysis – looks like. The assay gives valuable information on the types of products that can be produced from the oil, as well as the degree of difficulty in refining it. You have probably heard terms like “light sweet”, or “heavy sour”, but how do these qualifiers affect the ability of a refiner to turn these crudes into products?

Let’s look at a pair of typical crude oil assays:

Rest of the article is in the link.

The Sweet and Sour Economics of Refining — JDSU, VLO, TSO, MPC, CVX — Investing Daily

A good & informative article but primarily meant for the US refining environment and not applicable to Pakistan. Except PARCO, Pakistani refineries don’t have any upgrading facilities such as Cracking and are basic hydro skimming units; meaning atmospheric distillation only whereby bottom cut is at about 350 to 360 C with catalytic reforming. The data gives distillation at 1070 F which is about 565 C. This is only possible under vacuum as Residue starts cracking at temperature above 360 C under normal conditions. National refinery has a small vacuum unit but that is for the production of lubricants.

Most Arab/Persian Gulf crudes are Sour crudes. Only low sulphur crude is Marib Light exported out of Aden but the reservoir is near exhaustion. I am aware that Pakistan Refinery (PRL) was designed on 34 API Agha Jhari crude (currently called Iran Light). 34 API crude will produce about 42% bottoms at about 360C.

 

[zip]

@ezaaz07
you may be not knowing though india have very low quantity of fossil oil but
It produces around 800000 barrels per day ..this find is not a major one by any strech of imagination..still it counts though..

 

[forcetrip]

A good & informative article but primarily meant for the US refining environment and not applicable to Pakistan. Except PARCO, Pakistani refineries don’t have any upgrading facilities such as Cracking and are basic hydro skimming units; meaning atmospheric distillation only whereby bottom cut is at about 350 to 360 C with catalytic reforming. The data gives distillation at 1070 F which is about 565 C. This is only possible under vacuum as Residue starts cracking at temperature above 360 C under normal conditions. National refinery has a small vacuum unit but that is for the production of lubricants.

Most Arab/Persian Gulf crudes are Sour crudes. Only low sulphur crude is Marib Light exported out of Aden but the reservoir is near exhaustion. I am aware that Pakistan Refinery (PRL) was designed on 34 API Agha Jhari crude (currently called Iran Light). 34 API crude will produce about 42% bottoms at about 360C.

Correct. The article was informative as to differentiating between sweet and sour oil mostly. Thats why I did not post the whole thing.

 

[GreenFalcon]

This is discovered very close to where I live

 

[Sugarcane]

This is discovered very close to where I live

Start digging your backyard - maybe you are sitting on oil well.

 

[GreenFalcon]

Start digging your backyard - maybe you are sitting on oil well.

and Maybe I'll like become a Prince Sheikh GreenFalcon Jhelumi , Yala Yala