The component of operable capacity that is not in operation and not under active repair, but capable of being placed in operation within 30 days; and capacity not in operation but under active repair that can be completed within 90 days.
A refining unit whereby processed material from the crude units are treated in the presence of catalysts and hydrogen, often to remove sulfur and other unwanted substances. The hydrotreater is often the critical unit for producing jet fuel and low-sulfur diesel.
The lightest of all gases, occurring chiefly in combination with oxygen in water; exists also in acids, bases, alcohols, petroleum, and other hydrocarbons.
A refining process for converting middle distillates to high octane gasoline, jet fuel, or high grade diesel through the introduction of a hydrogen catalyst under very high pressure.
An oil refining process in which light or heavy gas oils or residue hydrocarbons are mixed with hydrogen under conditions of high temperature and pressure in the presence of a catalyst, yielding light oils.
The lightest of all gases, occurring chiefly in combination with oxygen in water; exists also in acids, bases, alcohols, petroleum, and other hydrocarbons.
The annualized standard deviation of percent variation in futures prices over a specific period of time; an indicator of past v olatility in the marketplace.
The initiation of an opposite futures position to protect a cash market position from an adverse price movement. Hedging is essentially the act of managing price risks in the physical markets using oil futures pricing instruments.
Oil industry participant who takes a futures, options, or derivatives position opposite that of a position held in the cash or contract market. A refiner who sells 500 forward gasoline contracts against his future production is hedging. A hedger is looking to reduce risk in exchange for a guaranteed margin, but he may forego larger profits in reducing his exposure.
Petroleum distillates with an approximate boiling range from 651 degrees Fahrenheit to 1000 degrees Fahrenheit.