1. Look at the diagram. What does it demonstrate?

This diagram demonstrates the price of crude oil per barrel by year.

2. The price of crude oil is very inconsistent. It depends on various fac- tors, the most important of which is the balance of supply and demand. Over the past decade it has been as low as 10$ and as high as 140$ per barrel. Try to match the oil prices below with the dates. Discuss your answers in pairs

 

1.July 2008	a.11 $
2.January 1999	b.134 $
3.March 2009	c.30 $
4.January 2016	d.64 $
5.August 2005	e.40 $

 

1	2	3	4	5
b	a	e	c	d

 

Reading

Read the text about light crude oil and say what the following abbrevi- ations mean

API – American Petroleum Institute

NYMEX – New York Mercantile Exchange

CL – light crude

WTI – West Texas Intermediate

 

Легкая сырая нефть

1. Сырая нефть сравнивается и описывается по плотности. Наиболее часто используемая шкала плотности — 0API. API — это Американский нефтяной институт, который находится в Вашингтоне, округ Колумбия. Он поставляет оборудование и процедуры для нефтяной промышленности. По своей плотности сырая нефть обычно делится на две большие группы: легкую и тяжелую.

2. Легкая сырая нефть представляет собой жидкую нефть с низкой плотностью, свободно текущую при комнатной температуре. Обладает малой вязкостью, малым удельным весом за счет наличия высокой доли легких углеводородных фракций. Как правило, он имеет низкое содержание парафина. Эти свойства облегчают извлечение и транспортировку по трубопроводам. Легкая нефть получает более высокую цену, чем тяжелая нефть на товарных рынках, потому что она дает более высокий процент бензина и дизельного топлива при переработке в продукты на нефтеперерабатывающем заводе. Бензин и дизельное топливо являются одними из наиболее востребованных продуктов, получаемых в процессе переработки, поэтому легкая сырая нефть обычно дает более прибыльные результаты, чем другие виды нефти. Легкая нефть составляет примерно 30% мировых запасов нефти.

3. Легкая нефть продается на нескольких биржах, но ни одна из них не так важна, как Нью-Йоркская товарная биржа (NYMEX), где легкая нефть продается как товар под обозначением «CL». Цены, установленные на NYMEX, определяют цены, которые будут платить за товар во всем мире. В целом, когда упоминается «стоимость барреля нефти», указывается цена легкой нефти на NYMEX. Легкая нефть встречается во всем мире, но обычно упоминаются три эталона, которые, как правило, устанавливают стандарт с точки зрения цены. Это West Texas Intermediate (API 39.6), Brent Crude (API 38.06) и Dubai Crude (API 31.0).

4. Важно отметить, что термин «легкая нефть» не является единым во всем мире. Будет ли сырая нефть считаться легкой, также может зависеть от того, в какой части мира она производится. Эталоном, обычно используемым для легкой сырой нефти в Соединенных Штатах, является WTI с индексом API 39,6.

Нефть марки Brent, добываемая в Северной Европе, и нефть Dubai, добываемая в Персидском заливе, считаются легкими, несмотря на то, что их плотность по API ниже, чем у WTI. Более низкий API соответствует более тяжелой нефти, поэтому сырая нефть Dubai Crude на самом деле слишком тяжелая (31 API), чтобы ее можно было назвать легкой, если бы она была произведена в США. или Европа вместо Персидского залива.

5. Другим часто используемым термином является легкая малосернистая нефть. Что такое «сладкое» в данном контексте? Существуют две основные категории, которые можно использовать для дифференциации сырой нефти: вес и содержание серы. Отсутствие серы в сырой нефти обычно приводит к тому, что ее называют «сладкой», а сырую нефть, в которой много серы, можно назвать «кислой». Самый ценный вид сырой нефти, доступный на товарных рынках, обычно легкий и малосернистый.

Language spot

1) Match the two halves of the phrases

1.Specific	a.Viscosity
2.Sulfur	b.Gulf
3.Persian	c.Market
4.Most	d.Content
5.Commodity	e.Gravity
6.Low	f.Content
7.set	G.Desired products
8.Wax	H.In stone

 

1	2	3	4	5	6	7	8
e	d	b	g	c	a	h	f

 

2) Complete the table below. Use a good English-English dictionary if necessary.

Noun	Verb	Adjective
Density		Dense
Extraction	Extract	Extractable
Trade	Trade
Profit	Profit	Profitable
Reference	Reference

 

Reading for details

1) Read the text one more time and answer the questions

Read the text one more time and answer the questions.

a) API standardizes petroleum industry equipment and procedures.

b) Light crude oil is liquid petroleum that has low density and flows freely at room temperature. It has low viscosity, low specific gravity due to the presence of a high proportion of light hydrocarbon fractions. It generally has low wax content. These properties make it easy to extract and transport by pipelines.

c) Light oil constitutes approximately 30 % of the world`s petroleum reserves.

d) Light crude oil receives higher price than heavy crude oil on commodity markets because it produces a higher percentage of gasoline and diesel fuel when converted into products by an oil refinery.

e) Light crude is traded on several exchanges, but nine as important as the New York Mercantile Exchange (NYMEX) where light crude is traded. Prices set on the NYMEX determine the prices that will be paid for a product throughout the world.

f) The three principle branches of light oil are West Texas Intermediate (API 39.6), Brent Crude (API 38.06) and Dubai Crude (API 31.0)

g) Crude oil is considered light can also depend on the part of the world where is produced.

h) There are two main categories that can be used to differentiate crude oils: weight and sulfur content. The lack of sulfur in crude oil typically results in it being referred to as “sweet” and crude that has a lot of sulfur in it might be called “sour”.

2) Write headlines for each of the paragraph 1-5:

Paragraph 1 – API. Classification of oil according to its density.

Paragraph 2 – Light crude oil and its place in the world.

Paragraph 3 – What is NYMEX and its importance for crude oil trading.

Paragraph 4 – The term “light oil” is not set in stone.

Paragraph 5 – The terms “sour and “sweet” in crude.

3) Brief notes for each of the headline.

Paragraph 1 – API. Classification of oil according to its density.

Crude oils are compared and described by density. The most commonly used density scale is API (American Petroleum Institute in Washington). API standardizes petroleum industry equipment and procedures. According to its density crude oil can be light and heavy.

Paragraph 2 – Light crude oil and its place in the world.

Light crude oil is liquid petroleum that has low density and flows freely at room temperature. It has low viscosity, low specific gravity due to the presence of a high proportion of light hydrocarbon fractions. It generally has low wax content. These properties make it easy to extract and transport by pipelines. Light oil constitutes approximately 30 % of the world`s petroleum reserves.

Paragraph 3 – What is NYMEX and its importance for crude oil trading.

Light crude is traded on several exchanges, but nine as important as the New York Mercantile Exchange (NYMEX) where light crude is traded. Prices set on the NYMEX determine the prices that will be paid for a product throughout the world. The three principle branches of light oil are West Texas Intermediate (API 39.6), Brent Crude (API 38.06) and Dubai Crude (API 31.0)

Paragraph 4 – The term “light oil” is not set in stone.

The term “light oil” is not set in stone. Crude oil is considered light can also depend on the part of the world where is produced.

Paragraph 5 – The terms “sour and “sweet” in crude.

There are two main categories that can be used to differentiate crude oils: weight and sulfur content. The lack of sulfur in crude oil typically results in it being referred to as “sweet” and crude that has a lot of sulfur in it might be called “sour”.

4. Work in pairs.

Project.

Gassy oils: Oil fields typically have some natural gas (or methane) and other lighter gases (ethane and others) associated with them. The more gas that is present, the more challenging and costly it is to safely manage these commodities. When the gas associated with certain gassy oils is not handled properly, usually due to lack of appropriate equipment, the gas is burned or released as a waste byproduct. Both flaring and venting operations are damaging to the climate as they release carbon dioxide, methane, and other GHG emissions. Oils that resort to these practices can result in at least 75 percent larger GHG footprints than comparable light oils that do not flare. Flaring policies vary. For example, it has been illegal to flare associated gas in Norway since the 1970s, making these oils some of the lowest emitting oils produced today.

 

 

1. How is oil density measured? Density is usually measured with a hydrometer, which is nothing more than a glass tube with a weighted bottom that sinks to a level proportional to the density of the liquid. 

2. What are the main characteristics of light crude oil?

Light crude oil has a low viscosity and low density, with an API gravity higher than 31.1^° API. 

3. What makes light crude such a valuable commodity? The lighter, sweeter grades of crude oil command a price premium, as they are easier to process and produce a higher percentage of gasoline than heavier grades, which produce more diesel fuel.

4. What can you say about the global trade of light crude oil? Light crude oil is primarily used to create fuels such as gasoline, diesel and aviation fuels. Heavy crude oil provides feedstock for plastics, petrochemicals, other fuels and road surfacing. Heavy oil can also be refined into transportation fuels.

5. Talk about global standards for light crude. ISO/TS 29001 defines the quality management system requirements for the design, development, production, installation and service of products for the petroleum, petrochemical and natural gas industries.

6. How can oil be classified according to the sulfur content? There are three types of liquid oil — natural, mineral, and synthetic oil.

7. What are the main benchmarks of Russian crude oil? There are three primary benchmarks, West Texas Intermediate (WTI), Brent Blend, and Dubai Crude.

 

1. Now make brief notes for each of the headline, expressing the key facts and ideas

 

Light crude oil

1. The most common- ly used density scale is ⁰API. API stands for American Petroleum Institute, based in Washington, D.C. It standardizes petroleum industry equipment and procedures.

2. Light crude oil is liquid petroleum that has low density and flows freely at room temperature. It generally has low wax content. These properties make it easy to extract and transport by pipe- lines. Light crude oil receives higher price than heavy crude oil on commodity markets because it produces a higher percentage of gasoline and diesel fuel when converted into products by an oil refinery.

3. Light crude is traded on several exchanges, but none as important as the New York Mercantile Exchange (NYMEX) where light crude is traded as a commodity under the designation «CL». Prices set on the NYMEX determine the prices that will be paid for a product throughout the world. Light crude is found through-out the world, but three benchmarks are commonly referenced and tend to set the standard in terms of price.

4. It is important to mention that the term “light crude” is not set in stone and is not consistent across the globe. The benchmark com- monly used for light crude oil in the United States is WTI, with an API of 39.6.

Brent Crude that is produced in northern Europe and Dubai Crude from the Per- sian Gulf are both considered light even though they have a lower API gravity than WTI.

5. Another term that is often used is light sweet crude. There are two main categories that can be used to differentiate crude oils: weight and sulfur content. The lack of sulfur in crude oil typically re sults in it being referred to as «sweet», and crude that has a lot of sulfur in it might be called «sour».