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Petroleum (Crude Oil) As An Energy Source
Petroleum (Crude Oil) As An Energy Source
Petroleum (Crude Oil) As An Energy Source
Prepared by:
Group: A
1.0 Introduction
Millions of years ago, animals and plants lived in oceans, lakes and swamps. After
dying, the remains of these animals and plants were buried by layers of sand, silt and
rock (U.S. Energy Information Administration, 2020). Over millions under high
temperature and pressure, the remains of these organisms turn to petroleum or crude
oil (Gray et al., 2010). Petroleum means rock oils or oil from earth that can be refined
into fuel. Crude oil is found in large underground deposits. Crude oil is found in large
underground deposits, in tiny spaces within sedimentary rocks, and near the surface in
tar (or oil) sands. Petroleum products are made from crude oil and other hydrocarbons
contained in natural gas. Petroleum products can also be made from coal, natural gas,
and biomass (Dermibas et al., 2015)
Petroleum refineries convert crude oil and other liquid into many petroleum
products that people use every day. U.S. refineries produce about 45 gallons of
petroleum products from a 42-gallon barrel of crude oil because of refinery processing
gain (U.S. Energy Information Administration, 2020). The total volume of products
refineries produce (output) is greater than the volume of crude oil that refineries
process (input) because most of the products they make have a lower density than the
crude oil they process. This increase in volume is called processing gain
2.0 Abundance / Renewability
Absolutely, the plentifulness of oil has been well-known since decades. Found
abundantly under Earth’s surface and tar pits that bubble to the surface, petroleum
even known to be existed way below the deepest wells that are dug for extracting the
oil (National Geographic, 2020).
Even so, petroleum’s extraction for energy purpose is clearly limited. Besides
coal and natural gas, oil also included as non-renewable energy source. In Malaysia,
oil is the largest non-renewable energy resource found, then only followed by natural
gas (Sulaiman et al., 2011). Hence, petroleum in detail is unsustainable and highly
having potential to diminish sooner or later (Umair Shahzad (2012); Mushtaq et al.
(2013); Azeem et al. (2016); Jabarullah et al. (2019)).
In fact, it took millions of years for the crude oil to be formed again to be
extracted and refined in specific usable products such as diesel, gasoline and various
other kinds of petrochemicals (Prince et al. (2017); Donev et al. (2019)). In short,
once the extraction and consumption of crude oil had been done, there is no possible
way that we can do to replace the crude oil except for waiting the crude oil to be
formed the next millions years and it is apparently impossible.
Petroleum refineries convert crude oil into petroleum products for use as fuels for
transportation, heating, generate electricity and as feedstocks for making chemicals
(Ben-Iwo, et al., 2016). This process has 3 basic steps which is separation, conversion
and treatment (gain (U.S. Energy Information Administration, 2020) First step is
separation, separation involves piping crude oil through hot furnaces. The resulting
liquids and vapor are discharged into distillation units. All refineries have atmospheric
distillation units, while more complex refineries may have vacuum distillation units.
Inside the distillation units, the liquids and vapor separate into petroleum components
called fractions according to their boiling points (Fahim et al., 2009) The lighter
components separate out at the top of the column and the heavier ones fall towards the
bottom. Refinery products can be grouped into three classes, Light distillates, middle
distillates and heavy distillates (Kondrasheva, 2018). The lightest fractions, including
liquefied petroleum gas, naphtha, and gasoline, vaporize and rise to the top of the
distillation tower, where they condense back to liquids. Then, medium weight liquids
including kerosene and diesel stay in the middle of the distillation tower and heavier
liquid including fuel oil, lubricating oil, waxes, and tar settle at the bottom of the
tower (Riazi, 2005).
Next step is the conversion. Some of the heavier components that are difficult
to separate may then undergo vacuum distillation (fractional distillation in a vacuum)
for further separation. The heaviest components are then commonly “cracked” to form
lighter hydrocarbons, which may be more useful. The most widely used conversion
method is called cracking because it uses heat, pressure, catalysts, and sometimes
hydrogen to crack heavy hydrocarbon molecules into lighter ones. However, cracking
is not the only form of crude oil conversion. Other refinery processes rearrange
molecules to add value rather than splitting molecules. For example, alkylation, makes
gasoline components by combining some of the gaseous by products of cracking.
Last step is treatment, refinery technicians carefully combine a variety of
streams from the processing units, to make gasoline. Octane level, vapor pressure
ratings, and other special considerations determine the gasoline. Both incoming crude
oil and the outgoing final products are stored temporarily in large tanks on a tank farm
near the refinery (Leprince, 2001).
4.0 Cost of Production
A barrel of oil price differs as the ease of production and the quality of the oil
extracted differs. And so, the production cost of crude oil differs according to
countries. Hartford Business (2015) recorded a barrel of petroleum in several
countries as shown in Table 4.1:
On the other hand, Tapis blend of crude oil found in Malaysian waters is
considered as the most expensive crude feedstock (Business Insider, 2018). Hence, as
an economic strategy, petroleum extracted from Malaysia is exported and sold abroad,
while the daily local consumption imported from Saudi Arabia and other Middle East
countries which produce cheap sour crude in large quantities (Business Insider, 2018).
That is why, if the cost production of petroleum of Malaysia stays as in covid-19 for
the next coming years, sheer of loss is needed to be faced by Malaysia’s National Oil
Corporation, Petroliam Nasional Berhad (National Petroleum, Limited) or mostly
known as Petronas.
5.0 Safety
The oil and gas industry are one of the most hazardous industry sectors. The
combination of powerful equipment, flammable chemicals and processes that are
under high pressure can lead to hazardous and even deadly incidents (OSHA
Technical Manual (OTM), 2020). Therefore, it’s important for safety managers and
supervisors to identify and communicate safety controls and hazards that exist on each
work site before work begins (Albert et al., 2014). Also, most companies released
several visual communications specifically for this industry including safety best
practice guide, quick safety tip article, informative infographic and many more.
There, workers must practice safe working practices and use appropriate
personal protective equipment. They must wear hard hats, safety glasses and goggles,
safety shoes, hearing protection, respiratory protection, and protective clothing such as
fire resistant when exposed to chemicals and other hazards such as heat, and during
process sampling, inspection, maintenance, and turnaround activities (OSHA
Technical Manual (OTM), 2020).
Besides that, they must consistently housekeeping to reduce the chance of fatal
by keeping floors, pathways, and all work areas clear of unnecessary items to prevent
trips and falls and struck-by hazard. They must clean all problem areas when chemical
or oil spill by using the spill kit provided.
Other than that, they must ensure machine maintenance stay on top. This is
because when working on offshore ring, the machines are their lifeline. So, they must
be alert and prevent from premature machine failure and always keep themselves safe
by conducting regular maintenance checks of machinery.
6.0 Environmental Impact
Oil drilling is the main and significant way in order to extract the petroleum purely
and refined into specific products on demand. This oil rig drilling machine requires a
spacious field before the extraction of oil can be done. As such, underneath the forests
and seas, the spots where oil is detected to be below them will be cleared up.
On the other hand, oil exploitation has a positive effect towards the deep sea
environment that may be blurred as the result of sequenced negative impacts of oil
exploitation towards environment in general. The positive effect meant is the
rejuvenation artificial reefs ecosystem from the outworn oil rigs that are once used for
petroleum extraction. Such oil rigs-to-reefs (R2R) programmes may build up the
biological productivity, boost ecological networking and facilitate conservation as
well as restoration of deep‐sea bed such as deep‐water corals by restricting access to
fishing vessels (Macreadie et al., 2011). Additionally, eight structures of oil rigs have
been converted into artificial reefs in the South China Sea. Seven of these rigs-to-reefs
are located around the waters of Brunei Darussalam and another one is Baram-8, the
only rig-to-reef structure in Malaysia. The Baram-8 oil platform was set up in August
1968, about 15 kilometres away from Tanjung Baram, Miri, collapsed in December
1975 and finally was retrieved and transformed into an artificial reef at the end of
2004 (Mohd et al., 2020). Figure 6.1 shows the condition of Baram-8 artificial reefs
ecosystem in 2012 (Awang, 2013).
Figure 6.1: The only artificial reef exists in Malaysia, Baram-8 (Source:
https://cil.nus.edu.sg/wp-content/uploads/2013/06/7.-Mr.-Daud-Bin-AWANG-OIL-
RIG-AS-ARTIFICIAL-REEF-EXAMPLE-OF-BARAM-8.pdf)
Oil spill is defined as an escape of oil into the sea or other body of water (Oxford
Dictionary, 2012; Idris, 2014). The largest oil spills had occurred in history is
nonetheless from the Deepwater Horizon oil drilling rig in Gulf of Mexico on 20 April
2010 which causes the death of 11 workers after the oil drilling rig exploded and sank
(Tainter & Patzek, 2011; Smith et al., 2011; Freudenburg et al., 2011). Sheer of
wildlife including marine mammals, sea turtles, birds, fish and invertebrates also died
as the result of the tragedy (NOAA Fisheries, 2020). Indeed, unintentional oil spillage
in the sea specifically has significantly leads to hazard effects to environment (Troisi
et al., 2016).
Undeniably, the oil spills mainly lead to water pollution (Purwendah, 2019).
This statement is supported by the fact that oil leakage always takes place mainly
when it is being transported by water (Shahzad, 2012). In fact, oil drilling, extraction
and conversion of oil into its products themselves are in need of using large volumes
of water in order for the processes to operate smoothly (Nabzar, 2011; Mekonnen,
2015) and more or less may contribute to the unexpected oil spills. Water pollution
that mostly starts offshore will affect the marine environment and its creatures within
or closely related to it. Seabirds for example recorded a huge scale of death as they
were being covered externally by the oil spills (Troisi et al., 2016). Meanwhile, the
seabirds that survived suffer for long term chronic effects due to the presence of toxic
polycyclic aromatic hydrocarbons (PAHs) in the ingested oil (Troisi et al., 2016).
Besides, marine environment alone also has been polluted at the first place by various
hazardous chemicals such as para-phenols and volatile benzene (D'Andrea et al.,
2013).
As for land, oil spills may also occur as the process along the extracting or
refining the crude oil also occurs in the presence of water body. This may result to soil
pollution, where the environment – the land around the spilled oil such as plants and
agricultural crops will result to death (American Petroleum Institute (API) Energy,
2020). This is because, the spilled oil prevent water from being absorbed into the soil.
As for oil spills occurring in cities and town, the incident may cause river pollution
and lead to water source disturbance (API Energy, 2020; Idris, 2014).
Most of the time, bioremediation may solves oil spills incident by applying
hydrocarbon-degrading bacteria to help in degrading hydrocarbon components in the
oils spilled (Ron et al., 2014). However, Tainter and Patzek (2011) stressed that the
result of oil spills to the environment is capable of being settled, but nevertheless takes
a series of truly extensive time and effort for the nature to fully recover. In fact,
Macaulay et al. (2014) also stated that the issues such as the delay of heavy or high
molar mass polycyclic aromatic hydrocarbon (PAH) biodegradation, eutrophication
caused by biostimulation, unsustainability of bioaugmentation in the field, poor
bioavailability of spilled petroleum, inefficiency of biodegradation in anoxic
environments and failure of successful bioremediation laboratory studies in the field
are also occurring, resulting the hope of seeing marine and terrestrial environment that
have been polluted by oil spills are fully oil-free again seems faded.
Undeniably, petroleum industries have released the greenhouse gases, mainly carbon
dioxide (CO2), followed by methane (CH4) and nitrous oxide (N2O) (Kweku et al.,
2017; Barbera, 2018). In fact, Lin and Li (2011) stated that CO2 is the major human-
caused greenhouse gas and the rise of this compound density throughout the
atmosphere is the result of the usage of fossil fuels such as petroleum. The fact that
petroleum exploitation causes the rise in CO2 is also supported by Chen et al. (2019).
This inculcates combustion, the main process in allowing petroleum-based products to
function (Cholakov, 2010). For instance, petroleum diesel burning generates carbon
emissions which have lead to various consequences (Hong, 2012).
Apparently, greenhouse gases’ emission such as CO2 throughout the air is the
starting point for greenhouse effect. According to Wang (2012), the greenhouse effect
is an extreme threat situation to our Mother Earth’s health. This situation occurs when
the greenhouse gases trap the infrared radiation in the Earth’s atmosphere, causing a
warm environment effect called the greenhouse effect (Kweku et al., 2017).
As the atmospheric CO2 level has increased due to combustion of petroleum
processing and products, the greenhouse effect has kept rising and resulting to global
warming and climate change (Lin and Li, 2011; Wang; 2012, Kweku et al., 2017;
Chen et al., 2019). As a matter of fact, CO2 is being focused and worried because of
its difficulty in being managed as it is the most problematic greenhouse gases among
all (Wang, 2012).
Global warming and climate change have currently led to ice and glaciers
melting in places such as Antartica, rising sea level globally (Cuffey and Paterson,
2010). Indeed, human activities such as combustion are estimated to have caused
approximately 1.0°C of global warming and if the rate of CO2 released keep rising
from current rate, global warming is seem to get to 1.5°C between 2030 and 2052
(Change, 2018).
7.0 Ease of Conversion
Purely extracted crude oil cannot be used in any way or anyhow. Instead, in order for
crude oil to function, it must be converted into another form of compound through
refining (World Petroleum Council, 2020). Crude oil is first being heated until it boils.
The boiling liquid will be separated into different liquid and gases within a distillation
unit as shown in Figure 7.1. Here, a denser product requires higher temperature.
Figure 7.1: Distillation unit will separate the heated crude oil into series of products
for being manufactured (Source: https://www.world-petroleum.org/edu/223-how-is-
crude-oil-turned-into-finished-products-).
According to US Energy Information Administration (2020), the output has
larger volume in compared to input which is the raw crude oil, known as the
processing gain. This is due to the decrement of density of the products produced in
contrast with the pure crude oil (US Energy Information Administration, 2020).
8.0 Conclusion
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