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In-Depth Guide of Crude Oil Refining Process

Have you ever wondered how a petroleum refinery works? How we can use products such as gasoline, medicines, plastics, or agricultural chemicals? What the steps are in the refining process? Who are responsible with making the process successful?

I’m sure by now you already had these questions about the petroleum refining process. So, here’s the step-by-step process of how refineries transform crude oil into more usable forms.

Distilling Phase

The first step towards the transformation of crude oil to usable forms is the distilling phase. In a distilling column, liquid is turned to vapor at different levels, and then distilled again to separate liquids.

The top is cooler than the bottom of the column, resulting to condensation of the liquid and collected to their respective trays. Light products end up at the top, while straight run residue at the bottom of the column.

Cracking Phase

Due to products like gasoline being more in-demand in the market, straight run products are converted to lighter liquids. This is where the cracking phase comes in. The term cracking is derived from how molecules of heavy liquids are turned into smaller, but more useful molecules. In turn, the liquid will be lighter and have more value in the market.

Reforming Phase

The reforming phase is undergone by the liquid for the purpose of raising the quality and volume of gasoline that can be produced by refiners. Increasing the octane is needed to have cleaner fuels.

The reforming process makes this possible by producing reformate, a substance needed to increase octane. During the reforming process, there might be catalysts used which starts the treating phase.

Treating Phase

Fuels that we use every day need to have no contaminants in order to be effective. Since crude oil naturally contains sulphur, nitrogen, and other contaminants, the treating phase aims to remove these chemicals through hydrogen binding.

After binding with hydrogen, acids are then poured to their respective columns to remove contaminants. Some of the molecules that aren’t used for the petroleum industry is then sold to other industries.

Blending Phase

Finally, the refining process undergoes the blending phase for crude oil to turn into finished petroleum products. Since motor vehicles require certain specifications to maximize their performance, refineries adjust the finished products so it meets these needs.

The blending process doesn’t necessarily need to take place at refineries. It can even be at off-site locations or anywhere outside the refinery gate, as long as it goes through pipelines.

The People behind the Process

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The refining process can be very sophisticated. So, to ensure that the refining process will go smoothly, crude oil refineries hire some of the top scientists and engineers around the world.

As you can see, the entire refining process is complex and intricate. We trust that you now have a better understanding of this interesting industry.

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6 Considerations for Buying Drilling Rigs You Should Be Aware Of

Whether you’re looking to go into the oil and gas business with your first rig, or an established drilling business with the desire to expand or have other branches, you have to buy a drilling rig.

However, different types of oil and gas businesses also require a different drilling rig. Sometimes, people make a mistake with buying one and that leads to a negative return-on-investment.

So here are different considerations that you need to take before you buy a drilling rig.

Used Drill Rigs

When deciding to buy drill rigs, one question that comes to mind is if you’ll purchase used drill rigs or new ones. However, if you finally decide to buy a used drill rig, remember that the treatment of companies to the rigs will differ.

They may have used it harshly, or gently. Also check the hydraulic systems and other parts of the rig if there aren’t any issues present.

Upgraded Technology

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Continuous use of your old drilling rig will wear out its productivity and quality, even when it’s not obvious. So, buying a new drill rig provides you with more productivity and possibly help you drill more meters.

It will also decrease uptime and have more safety measures installed. Having more safety measures will reduce cost of a drilling contractor.

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The Drilling Company

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Besides the improvement in technologies, you also have to consider how the drilling company is doing things. For example, their productivity with their employees on producing new drill rigs if it’s still high-quality.

Another consideration you should make in checking the drilling company is their ability to mobilize contracts.


There are times when you should expect drilling companies to have longer lead times. Whenever the inventory is high, production of rigs isn’t maximized and lead times are reduced.

However, if the inventory is low, drilling rig production will be faster so lead times will be increased.


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Whenever your old rigs break down, the down time can affect your productivity and reduce your profit. It can also affect drilling contracts and the costs will start piling up. It can be due to the loss of productivity, uptime contractual obligations, and repair costs.

So, having a new drill rig can keep a contractor from getting kicked off a contract.


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When you’re buying a new drill rig, there are several options out there, and some are super cheap. While it may be tempting to buy those, you have to consider the total cost of ownership.

Take your time calculating the price of each of the replacement parts and you’ll find that it would help you in the long run. At the end of the day you’ll have to do at least some homework and research in finding a drilling rig that best suits your business goals and needs. We trust that our list of considerations have informed you of all the necessary details to look into before buying the first and best option you find.

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6 Ideas for a Profitable Oil and Gas Business

Starting a profitable oil and gas business often require large-scale operation and investment. That’s why only a few people dare to start one, and often they find themselves failing to get their investment back.

However, you can always start with small-scale businesses. If you do want to start a large-scale oil and gas business, it must be very, very sustainable.

Here are six of those ideas that will enable you to start an oil and gas business and make it profitable!

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Gas Station

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A gas station isn’t exactly the most inexpensive businesses you can put up, but it’s one of the most viable. Not to mention that it won’t be going out of style soon, instead it’s actually more booming than ever.

Oil and Gas Consultancy

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Responding to the changes in the market of the oil and gas industry can be difficult. That’s why companies lean on oil and gas experts for consulting services.

However, if you are to start an oil and gas consulting services, you should have an outstanding understanding of the industry.

Petroleum Refining

Since petroleum mining is becoming a more and more feasible idea for a business, refining is also affected. In fact, the mining sector won’t go anywhere without refineries. However, this is a large-scale operation and requires a huge investment.

Cooking Gas Distribution

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The business of distributing cooking gas is one of the few businesses that you can start with a small capital. To ensure that you’ll get your investment back, and more, learn to spread word about your business through word of mouth.

Crude Oil Shipping

Along with mining and refining, the shipping sector is also needed to manage the oil and gas industry. But just like with the mining and refining business, you’ll have to start with a huge investment.

Invest in Oil and Gas Companies

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Now if you don’t have the required capital to start your preferred oil and gas business, you can always invest on oil and gas companies.

Are you eager to invest in your own oil and gas company? With the business ideas shared here, you’ll definitely be off to a great start. Be sure to do enough research and get all your facts straight before making the investment.