Mark A wrote:
> "Ray O" <rokigawaATtristarassociatesDOTcom> wrote in message
> news:MZudnTyEW9gD9f3VnZ2dnUVZ_qDinZ2d@comcast.com. ..
>> I am not a chemist or expert on refining oil, but I don't think that it is
>> economically feasible to get 42 gallons of gas from 42 gallons of crude
>> oil because the crude oil has different components with different
>> properties.
>>
>> These articles seem to confirm this:
>> http://en.wikipedia.org/wiki/Oil_refinery
>> http://science.howstuffworks.com/oil-refining3.htm
>>
>>
>> Ray O
>
> I think you are missing the point. When a barrel (42 gallons) of oil is
> refined, and it produces 21 gallons of gasoline, it also produces 21 gallons
> of other refined hydrocarbons with a fairly substantial economic value.

with just distillation, that would be about right, though it depends on
what's being distilled. however, if we introduce modern hydrocracking
and catalysis, which refiners do in fact use, we can get substantially
more than 21 gallons of gasoline [and a lower quantity of heavier product].


> So
> the economic value of the output of the refining process needs to be
> distributed among the products produced.
>
> So if you want to stick with 21 gallons of refined gasoline per barrel of
> crude, then you need to cost the barrel of crude at about $68 (about one
> half the current price of $136 per barrel). Otherwise you are assuming that
> the raw material cost of the other refined products in a barrel of oil
> (including jet fuel, fuel oil, etc) is zero (which might surprise a lot of
> airlines and homeowners).
>
>