Thursday, 3 January 2008

What is the "Barrel" unit of OIL?

Petroleum Products Yielded from One Barrel of Crude Oil in California:
The price of crude oil reached to the record high touching US $ 100 a Barrel in the history. The price of crude oil per Barrel at the January of 2006 was around US$50. The increase of oil has great effect in the increase of inflation. All the products including foods eg. rice, milk, soaps have been increased more than30% here in Germany. Also, in Nepalese economy has negative effect of oil price increase.
Despite of its high influence in everyone's life, many people might be confused with the unit Barrel therefore I have posting indtroductory note to this blog. With refinery processing, many products can be produced from crude oil. The final products from 1 Barrel of Crude Oil is shown in the graph as follows:

One barrel contains 42 gallons of crude oil. And one Galllon is equal to 3.8 litres ( 1 Gallon = 3.785411784 Liters). That means one Barrel is equal to 159 litres.The total volume of products made from crude oil based origins is 48.43 gallons on average - 6.43 gallons greater than the original 42 gallons of crude oil. This represents a "processing gain" due to the additional other petroleum products such as alkylates are added to the refining process to create the final products. Additionally, California gasoline contains approximately 5.7 percent by volume of ethanol, a non-petroleum-based additive that brings the total processing gain to 7.59 gallons (or 49.59 total gallons). Source: California Energy Commission.

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