原油期貨問答2023年版（英文）

2023Edition

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CONTENTS

CrudeOilFundamentals

01

1Whatarethedierenttypesofcrudeoil?

02

2Whatdo“parainic”,“naphthenic”and“intermediate”crudeoilsmean?

3Howtodierentiatebetweenlightandheavycrude?

03

4Howtodierentiatebetweenlow-sulfurandhigh-sulfurcrude?

04

5WhattypesofcrudeoilsarethosefromtheNorthSea,MiddleEast,andtheDaqingandShengliOilieldsofChina?

6Whatiscrudeoilusedfor?05

7What'stherelationshipbetweencrudeoilandgasolineordieseloil?068Howiscrudeoiltransported?

9Whyiscrudeoilmeasuredinbarrels?Howmuchisabarrel?What'stherelation

betweenbarrelsandmetrictons?

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GlobalCrudeOilDemand&SupplyandTrade

10Howmuchoildoestheworldproduceandconsumedaily?

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11Howlongwilltheworld'soilreserveslast?

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12Whatfactorswillaectthecrudeoilreservesdepletionrate?

12

13Whatistheglobalgeographicaldistributionofmajoroilproductionand

consumption?

14

14Whatarethelargestoilproducingandconsumingcountries?

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15Whatistheglobaltradeshareofworldpetroleumconsumption?

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16Whataretheworld'stopoilimportsandexportsbyregions?

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17Whataretheworld'soilmajors?

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18Whataretheworld'smajornationaloilcompanies(NOCs)?

19Whatarethemajorshippinglanesfortheglobaloiltrade?

20Howarefreightratesforoiltankerscalculated?

23

21Whatarethetypesofregularoiltankers?

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CrudeOilGeopolitics

22Whichinternationalorganizationsplayprimaryrolesinthecrudeoilmarket?

Whataretheirrolesintheoilmarket?

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23WhoarethememberstatesofOPEC?

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24WhatarethecomponentsoftheOPECReferenceBasket(OPECbasket)?Whywas

theOPECbasketpricingsystemintroduced?

31

25WhydoMiddleEastgeopoliticshavesuchaninluenceontheoilmarket?

32

26WhydoestheUnitedStateshavesuchalargeinluenceontheglobaloilmarket?3327HowmaytheUnitedStatesinluenceoilprices?34

China'sOilMarket

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28WhatarethemajoroilieldsofChina?WhatarethesemajorSOEoilproducers'

sharesofdomesticcrudeoilproduction?

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29WhatisChina'sshareofglobalcrudeoilproductionandconsumption?

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30WhataretheoilproductionandimportvolumesofChina?HowmuchdoesChinadependonforeignoil?

31WhoarethetopcrudeoilsupplierstoChina?Whataretheirrespectivesharesof

Chinesecrudeimports?

40

32WhoisentitledtoimportandexportcrudeoilinChina?Isacrudeoilimport

quotaapprovedbythegovernmentauthoritiesrequired?41

33WhatisChina'sStrategicPetroleumReserve(SPR)management?Whatisthe

currentSPRstockpilinglevelandfuturedirection?42

44

GlobalOilPricing

34Whyarefuturesmarketpricesthereferencespricesformostoftheoiltraded

aroundtheworld?

46

35Arethepricesofreinedproductsanchoredtothepriceofcrudefuturesinglobal

oilmarket?

47

36Whoaretheworld'smajoroilpricereportingagencies(PRA)?

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37HowdoPRAslikePlattsandArgusassessoilpricesandhowdotheirpricesinluenceoilmarket?

38WhatarethepricingconventionsusedbyMiddleEasterncountriesandRussia

foroilexports?

49

39WhatarethemajorbenchmarksforoiltradingintheAsia-Paciicregion?

50

40WhatisthedierencebetweenAsia-Paciic,NorthAmericanandEuropeanoil

tradingprices?

51

41Whatarethepricingmodelsforcrudeimportsanddomesticproductionin

China?

52

54

FuturesandDerivativesMarket

42Whatarethebasicattributesofasuccessfulfuturescontract?

56

43Whatarethearbitragestrategiescommonlyusedbyfuturesdealers?

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44Whyarearbitragestrategiesmorepopulartoproprietarytradersthandirectional

trades?

58

45Whatisthespeculators'marketshareinfuturesmarkettradingvolume?

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46Whatroledoesspeculatorsplayinthedevelopmentoffuturesmarketsandthe

pricediscoveryprocess?Dotheymanipulatethefuturesmarket?60

47Whatarecommonformsofmarketmanipulation?Whatregulatory

countermeasuresareadoptedtopreventsuchbehavior?

48Whydoforeignfuturesexchangeslistotherexchange’scontracts?Isthisaform

ofcompetitionorcooperation?

62

49Whatareothercommonderivativescontractstradedonexchanges?6350IsthereanyrelationshipbetweenOTCderivativesandexchange-tradedfutures?65

51WhataretherespectivetradingvolumesoftheOTCmarketandtheexchange-tradedderivativesmarket?

52WhatarethefutureforOTCandexchange-tradedderivativesmarkets?Whatis

thecentralizationoftheOTCmarket?

66

InternationalCrudeOilFuturesMarket68

53Whataretheinternationalexchangesthatcurrentlylistcrudeoilfutures?How

aretheirtradingscalesandextentofmarketinluence?7054WhatistheunderlyingcrudeorqualityforWTIandBrentfutures?7155Whoarethemainparticipantsintheinternationalcrudeoilphysicalandfutures

markets?

56Whyisthereatradingpricedierentialbetweendierentcrudes?Istherea

reasonablerangetothespreadbetweentwocrudestreams?72

57Whatisamarketmaker?Howdomarketmakerscontributetothefuturesmarket?WillmarketmakersbeintroducedintheChinesecrudeoilfuturesmarket?

58Isphysicaldeliverynecessaryforacrudeoilfutures?73

DesignofChina'sCrudeOilFuturesContract

7259WhatisthesigniicanceofdevelopingChina'sowncrudeoilfuturesmarket?7660WhatarethegovernmentpoliciesforsupportingChina'scrudeoilfutures?

61WhatarethegeneralprinciplesbehindthecontractdesignofChina'scrudeoil

futures?

78

62WhatistheroleofINEasacentralcounterparty(CCP)?

79

63HowwillINEstrengthenitsriskmanagementsystemstosupporttheglobalized

futuresmarket?

80

64WhatcommonChinafuturesruleprincipleswillbecarriedovertothecrudeoilfuturesmarket?Whatnewruleswillbeformulatedandapplied?

65WhataretheChinesecrudeoilfuturescontractspeciications?

81

66WhyhasINEchosenmediumsourcrudeoilastheunderlyingforitscrude

futures?

82

67HowdoesINEsetthedeliverablegrades,crudequalitycriteriaandpricedierentialsforeachdeliverablegradeofcrudefutures?

68Whywasn'tdomesticallyproducedcrudechosenasthedeliverablegradefor

Chinesecrudefuturescontract?

83

69WhatcontractmonthsarelistedfortradingforChina'scrudefutures?Howisit

dierentfromotherinternationalmarkets?

84

70WhatisthelasttradingdayanddeliveryperiodofChina'scrudeoilfutures

contract?Howdotheydierfromthoseofoverseascontracts?86

71HowdothedailytradinghoursofChina’scrudeoilfuturescontractsdierfrom

thoseofmajorinternationalcrudeoilfuturescontracts?88

72IsthereanycrudespotpricethatservesastheunderlyingpriceforChina'scrude

oilfuturescontract?

89

73HowisthemonthlyaveragesettlementpricefortheShanghaicrudeoilfutures

calculated?

90

74HowdoesChina'scrudeoilfuturesdierfromandrelatetoothermajor

internationalcontracts?

93

TradingAccesstoChina'sCrudeOilFutures9675WhydoestheChinacrudeoilfuturesmarketneedglobalparticipation?9876Whatarethemajoroilspotandderivativetradinghubsglobally?99

77Istheruleof"onetraderoneID"applicabletodierentteamswithinthesame

institution,soastoprovideadierentiatedsolutionfortransactionmanagementbetweendierentsub-accountsoftheinstitution?

78HowcananoverseasparticipantaccessandtradetheChina'scrudeoilfutures?100

79Whatisthetradereligibilitycriteriaforoverseasinstitutionalcustomersto

participateinChina'scrudeoilfuturesmarketandhowmayeligibleoverseas

traderstradeontheExchange?

101

80HowmayoverseasfuturesbrokersparticipateinChina'scrudeoilfuturesmarket?102

81HowmayoverseasindividualinvestorsparticipateinChina'scrudeoilfutures

market?

103

82DooverseasindividualinvestorshavetoopenNRAaccountstotradecrudeoil

futures?

104

83IsthereanytradereligibilityrequirementfordomesticinstitutionalinvestorsinparticipatinginChina'scrudeoilfuturesmarket?

84HowdodomesticindividualinvestorsparticipateinChina'scrudeoilfutures

market?Whataretherestrictions?

105

85Isitrequiredforthoseinvestors,whoareunderthejurisdictionofEuropeand

participatinginChina'scrudeoilfuturesmarketthroughanEuropeanOverseas

Intermediary,toregistertorelevantauthorityforparticipationofoverseasfutures

marketbyobservingtheEuropeanMarketInfrastructureRegulation(EMIR)?106

86CanaNon-FFMemberthatisapprovedbyINEtouseotherfuturesbroker(s)to

executetheirtradesonINE?

107

87PublicOeringFundsdesignvariousproductssuchasETF,whichcouldincreasetheliquidityoffuturescontracts.CanPublicOeringFundsparticipateincrudeoilfuturestrading?

88DoesINEacceptEnglishversionofdocumentsandiles?Areregulations,articles,

circularsandnoticespublishedbyINEalsoavailableinEnglish?108

89Sinceit’sdiiculttoobtainclients’overseascreditreports,besidesthecommitmentletter,whataretheotherways?

90Foroverseasinvestors,whataretheavailabletradingvendorsthathavebeen

connectedtotheINEtradingplatform?

109

SettlementandRiskManagementofChina's

CrudeOilFuturesTrading

110

91HowarethedailysettlementpriceandinalsettlementpriceofChina'scrudeoil

futurescontractdetermined?Howaresettlementpricesofmajorinternational

crudeoilfuturescontractsdetermined?

112

92What'stherequirementonmoneyexchangeoshoreparticipantsinthecrude

futurestrading?

113

93What'sthelowofinbound/outboundfundtransferforcrudeoilfuturestrading?114

94HowdoesChina'scrudeoilfuturecontractdierfromothermajorcrudeoilfuturescontractsintheworldintermsofthepricelimit?

95WhatisthemarginingmethodologyfortheChina'scrudeoilfuturesmarket?

Howisitdierentfromthatformajorcrudeoilfuturesintheworld?116

96Willtradingpositionsofmultipletradingaccountsthatareownedseparately

byrelatedentitiesundersamebusinessgroupbecombinedtogetherinthe

Exchange'sriskmanagementoflargetraderreportingorpositionlimit?117

97WhatistheprocedureinapplyingthehedgingquotaandwhatareINE’s

principlesinevaluatingandapprovingthehedgingquotaapplication?118

98TheSCpositionlimitoffrontmonthcontractis500,000barrels,whilequotaforBrentisabove6millionbarrels.CanINEincreasethepositionlimitforoil

companies’andotherinstitutions’convenience?11999Isitapplicableforletterofcreditbeingusedasmargincollateral?

100IsitnecessaryforanFXforthefuturestradingbeconductedinaDesignated

DepositoryBank?CanFXbeconductedinonebankthatoerbetterrateand

thentransferredintotheaccountofthedesignateddepositorybankaccount

thatsuchcustomerhasaccountwith?

120

101Foratraderwhoholdslongandshortpositionatthesametime,ishisposition

marginedonagrossornetbase,orusingtheprincipleof“CombinedCommodityGroup”?

102MargincallwillbeissuedwhenaMember’sclearingdepositbalanceislowerthantherequiredminimum.WhatactionwillINEtakeforfailuretomeetthe

margincallbeforemarketopenonthefollowingtradingday?121103AfteraMembercompletestheinternalendorsementprocedureformaking

suchpayment,willthefundremittancemadebysuchmemberfromitsmargin

accounttotheExchangeclearingaccountbeinstanttransfer?122104Canadomestic/overseasbrokerprovideinancingservicetoitscustomersin

futurestrading?

105IsitrequiredforanoshoreinstitutionalinvestorwhotradeonINEthroughanonshore/oshorebrokertosetupaspeciiedbankaccountforfuturestradingpurpose?

106Cananon-FFMemberuseforeigncurrencyintradingthecrudefutures?123

107IsittruethatanOSPcanonlyuseFXfundasmargincollateralandthetrading

expensesanddailymarktomarketresultfromfuturestradingcanonlybesettledinRMB?

CrudeOilFuturesDelivery124

108WhatisthedeliverymechanismusedbyChina'scrudeoilfutures?126109WhatareChina'scrudefuturesdeliverablecrudegradeoriginationlocations?127110Whataretheexpensesandfeesrelatedtocrudeoilfuturesdelivery?

111WhatarethedesignateddeliverystoragefacilitiesforChina’scrudeoilfutures?128112WhoarethedesignatedinspectionagenciesofChina’scrudeoilfutures?129

113Whatisthedierencebetweenthewarrant-baseddeliveryforChina’scrudeoil

futuresmarketandphysicaldeliveryinforeignoilfuturesmarkets?130

114WhatisthelogicbehindthedesignofthechoiceofdeliverylocationsandthecapacitiesofthestoragefacilitiesusedforChina’scrudeoilfutures?

115Howcanfalsiiedcrudeoilwarrantsbeidentiied?131116WhatarethemainfeaturesofChina’scrudeoilfuturesdeliverymechanism?132

117AccordingtotherulesofINE,SeptembercontractwilldeliveryinSeptember,

thatmeanscrudeneedstobestoredatthedesignateddeliverystoragefacility

inAugust,andtradermustplanningpurchasecrudeoilfromtheMiddleEastin

May.Spottradesarehardtomakechangeswhentransactionsarecompleted,

hencethetradelexibilityislow.Howtohandlethiskindofsituation?133

118Forspotcommoditygoodsimportedasaresultofphysicaldeliveryinthefutures

market,whichpricebasewillbeusedtocalculatetheCustomtax?Isitbasedon

thesettlementpriceofdeliveryorwillthetradedpricewhenbuyeropenedits

futurespositionbeadopted?

134

119Inthecasewhenafuturesdeviatessharplyfromthespotmarketprice,theEFPpriceand/orinalsettlementpriceforthecrudefuturescontractmaydiverge

signiicantlyfromthespotmarketprice.HowdoestheChinaCustomsruleonthedutiablevalue?

120Howwilltheinalsettlementpricebedeterminedinthecasewhereacontract

closesatlimitupordownononeofthelasttrading?Shallthecalculationof

meanaverageof5dailysettlementpricesthathavetradesexecutedoneach

samplingtradingdayexcludethesampleofsettlementpricethatisclosedat

limithighorlow?

136

121Inasituationwheretheload-indeadlineismissedduetoportcongestion,can

thesellerrequestinadvanceforrelaxingthedeliverywindow?

122Pleaseexplainwhatisthemeaningof“theappliedload-infuturescommodities

shallbeshippeddirectlyfromtheportoftheplaceoforigin”(Article39ofthe

INEDeliveryRules)?Cancrudeoilinaloatingstorageforhalfayearbeusedin

delivery?

137

123Howdoesadesignateddeliverystoragefacilityconductsupervisionand

managementofthetransportationofcommoditiesasprescribedinArticle39of

the“DeliveryRulesoftheShanghaiInternationalEnergyExchange”?138

124Article128oftheINEDeliveryRulesstatesthatqualityinspectionatdeliveryiswaivedforcertainregisteredcommoditiesspeciallyapprovedbyINE.Doesthisexemptionapplytoanyoftheeightdeliverablecrudeoils?

125Article80oftheINEDeliveryRulesstatesthatDesignatedDeliveryStorage

Facilitiesshouldcooperatewiththecommodityownersincoordinatingwiththe

terminal,port,pipelinecompany,customs,andcommodityinspectionagencyto

ensurepriorityfortheload-inandload-out.CanINEbemorespeciicaboutwhat

arrangementsithaswiththecustomsandinspectionagenciestoensureowners

aregivensuchpriorityinpractice?

139

126Comparedwiththespottrade,thecostrelatedtocrudeoilfuturesdelivery

(includingstoragefees,inspectionfeesandotherexpenses)isveryhigh.Are

thereanyalternativewaystolowerthecost?

140

127Isitpossibletouseapproachessuchasoillighterage,cargoassemblyandetc.toreducedeliverycosts?

EQ\*jc3\*hps24\o\al(\s\up1(d),h)

i

EQ\*jc3\*hps24\o\al(\s\up1(S),S?)

ettlement(TAS)

EQ\*jc3\*hps14\o\al(\s\up0(1),1)

EQ\*jc3\*hps14\o\al(\s\up0(4),4)

EQ\*jc3\*hps14\o\al(\s\up0(2),4)

129WhydoesINElaunchTASorders?

130WhocanplaceTASordersforcrudeoilfutures?145131WhichcrudeoilfuturescontractsareeligibleforTASorders?

132WhatisthepricequoteofTASordersforcrudeoilfutures?

133WhatarethetradinghoursofTASordersforcrudeoilfutures?

134WhatarethematchingrulesofcrudeoilTASorders?146135WhataretheattributesofTASordersforcrudeoilfutures?

136CanotherpropertiesbeattachedwithaTASorderforcrudeoilfutures?137HowwillINEcollectthemarginofaTAStradeforcrudeoilfutures?

138HowwillINEcollectthetransactionfeesofaTAStradeforcrudeoilfutures?147139HowtoaccessthemarketdataofTAStradesforcrudeoilfutures?

140IftheeligiblecontractistradedonlybyTASorder,howwouldthedaily

settlementpricebedetermined?HowtodeterminethesettlementpriceoftheTASorder?

141HowtoopenpositionsusingTAS?148

142Howtocloseouttoday’spositionusingTAS?149143HowtocloseoutpreviouspositionsusingTAS?

144WhatiftheTASorderisexecutedatapriceaboveorbelowthecontract’sprice

limit?

150

145HowtoUseTASOrdersforHedging?

146HowtoUseTASTradinginFundManagementbyETFs?153

Appendix155

Appendix1:2016-2020AnnualProductionofChina’sMajorOilields

Appendix2:ShareofChina’sCrudeOilImportfromMiddleEasternCountriesin2022156Appendix3:2017-2022ChinaCrudeOilImportsandExports157Appendix4:2022ApprovedReineryQuotawithImportedCrudeOil

Appendix5:CrudeOilPricingBenchmarksforMajorMiddleEasternOil-Producing

Countries

159

Appendix6:TradingVolumeofMajorGlobalCrudeOilContractsin2022160Appendix7:CharacteristicsofMajorImportedCrudeOilsofChina161Appendix8:TheTotalProvedReservesofOECDCountries2020162

CrudeOil

Fundamentals

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CrudeOil

Fundamentals

01

Whatarethedierenttypesofcrudeoil?

Crudeoilcanbeclassiiedbyseveraldierentcriteria:

?Bychemicalcomposition:Parainic,naphthenic,andintermediate;

?Bysulfurcontent:Ultra-low-sulfur,low-sulfur(“sweet”),medium-sulfur,andhigh-sulfur(thelattertwoareoftenknownas“sour”);

?Byrelativedensity(orAPIgravity):Light,medium,andheavy.

02

Whatdo“parainic”,“naphthenic”and“intermediate”crudeoilsmean?

Parainic,naphthenicandintermediatecrudeoilsare

dierentiatedbytheproportionofhydrocarbonmoleculestheycontain.Parainiccrudecontainsahigherproportionofalkanes;naphtheniccrudefeaturesahigherproportionofcycloalkanesandaromatics(alsoknownas“arene”);intermediatecrudefallssomewherein-betweenthetwo.

03

03

Howarelightandheavycrudesclassiied?

Lightandheavycrudeoilsareusuallyclassiiedintwoways.

Theycanbeclassiiedbyrelativedensity,whichinChinaisthe

ratioofthemassofoilat20°Ctothatofpurewaterat4°Cunder1standardatmosphericpressure.Ingeneral,crudeoilwitharelativedensityof0.9-1.0isclassiiedasheavycrude,andcrudeoilwitharelativedensitybelow0.9isclassiiedaslightcrude.

LightandheavycrudeoilscanalsobeclassiiedbytheAmericanPetroleumInstitute(API)gravity,whichiscalculatedas:APIgravity=(141.5/relativedensityofcrudeoilat60°F)–131.5,wheretherelativedensityofcrudeoilat60°Fistheratioofthecrudeoil’s

masstothatofaunitvolumeofpurewaterat60°F(15.6°C)under101,325Paofambientpressure.

Byinternationalconvention:ultra-lightcrudehasanAPIgravity≥50,lightcrude35-50,mediumcrude35-26,andheavycrude26-10.However,thisgradingsystemisnotauniversalstandard,asdierentcountriesandcompaniesoftentakeotherfactorsintoconsideration,suchasapplicablepricingbenchmarks.

04

04

Howtodierentiatebetweenlow-sulfurandhigh-sulfurcrude?

Low-sulfurandhigh-sulfurcrudeoilarecategorizedbysulfur

content,whichreferstotheweightpercentofsulfur(eithersulideorelementalsulfur)containedinacrudeoil.Sulfurimpactsthe

qualityofacrudeoilbecauseitcausesdiicultiesinprocessingtheoil,suchascorrosionofmetals,andairpollutionfromtheburningofhigh-sulfurfuels.Generally,mostcrudeoilscontainalowlevelofsulfur.Basedsulfurcontent,crudeoilcanbeclassiiedaslow-

sulfur(“sweet”),medium-sulfur,andhigh-sulfurcrudeoils(the

lattertwoareoftenreferredas“sour”),respectivelycontaininglessthan0.5%,between0.5%and2.0%,andmorethan2.0%ofsulfurbyweight.

05

WhattypesofcrudeoilsarethosefromtheNorthSea,MiddleEast,andthe

DaqingandShengliOilieldsofChina?

CrudeoilsfromtheBrentandtheNinianoilieldsinthenorthernAtlanticarelightsweetcrudeoil.

CrudeoilsfromtheMiddleEastaremostlymediumsourcrudeoil,suchasBasralightofIraq,DubaioftheUnitedArabEmirates,andQatarMarineofQatar.

China’sDaqingOilieldproduceslightsweetcrudeoilandtheShengliOilieldproducesmedium-to-heavysourcrudeoil.

05

Crudeoilcanbeprocessedandreinedintoawidearrayof

petroleumproducts.Ithaspoweredtheworldeconomy,isusedforavarietyofpurposes,andisthemostconsumedenergysourceintheworldtoday.

06

Whatiscrudeoilusedfor?

Productsreined,produced,orderivedfromcrudeoilare:(i)

combustiblefuelsthatareusedasmainenergysources,suchasgasoline,kerosene,diesel,fueloil,andliqueiedpetroleumgas;

(ii)high-molecular-weightpolyethylene,acrucialpillarofthe

modernmaterialsindustry,andthevastmajorityofrawmaterialsforindustrialorganicchemicals;(iii)awiderangeoflubricant

andancillarymaterialsextensivelyusedinmetalprocessingandmachineries;and(iv)nitrogenfertilizersandotherindustrial

chemicalsusedinagriculture.Otherthanbeingusedasfuel,

petroleumproductsarealsowidelyapplicableintheconstructionandbuildingmaterialindustries,lightindustryandthetextile

industry.Itplaysvitalrolesinfuturedevelopmentofnovelmaterials,technique,andproductinvention.

06

07

What’stherelationshipbetweencrudeoilandgasolineordieseloil?

Crudeoilcanbeseparatedeasilybyfractionaldistillation,into

gasoline,keroseneanddieselfractions,andotherdistillate

productssothattheycanbefurtherreined.Thesefuelsthencanbefurtherblendedormixedwithappropriateadditivestocreatetheinishedproductsofgasolineanddieselweuseeveryday.

08

Howiscrudeoiltransported?

Generally,intercontinentaltransportationofcrudeoilreliesonmarinetankerswhosedeadweighttonnagerangesfromtensofthousandstohundredsofthousandsoftons,whilepipelinesareusuallyusedtotransportoilonland.Railandtanktrucksarealsousedforshort-distancetransportation.

07

09

Whyiscrudeoilmeasuredinbarrels?Howmuchisabarrel?What’sthe

relationbetweenbarrelsandmetrictons?

BarrelasaunitofmeasurementforcrudeoiloriginatedfromtheDrakeWellinPennsylvania,U.S.ItlaterbecameawidelyacceptedstandardforoiltradesintheU.S.andaroundtheworldthroughitsusebytheStandardOilCompanyfoundedbyJohnD.Rockefeller.

1barrel=42U.S.gallons(1U.S.gallon=3.7854liters)≈0.159m3=159liters

Whilemanyoilproducingcountries,suchasOPECandwestern

countrieslikeUKandU.S.,usethevolume-basedunitof“barrel”tomeasurecrudeoil,countriesincludingChinaandRussiause“metricton”,aweightunit.Sincetheoildensityvariesgreatlyamongthedierentplacesoforigin,theweightofabarrelmayluctuatefrom128kgto142kg,meaning1metrictonofcrudeoilisabout7.0to7.8barrels.

CommemorativepostmarkofOilCity,PennsylvaniadatedJuly16,1983incelebrationofthe“OilHeritageWeek”.Themarkdepictsahorsecartcarryingwoodenbarrels.

08

GlobalCrudeOilDemand&SupplyandTrade

02

09

10

GlobalCrudeOil

Demand&Supply

andTrade

Howmuchoildoestheworldproduceandconsumedaily?

AccordingtotheBPStatisticalReviewofWorldEnergy2022,totalglobalcrudeoilconsumptionin2021was4.245billionmetrictons(94.09millionbpd),up5.342millionbpdfromtheyearbefore.

Totalglobalproductionwas4.221billionmetrictons(89.88millionbpd),up1.38millionbpd.Inparticular,in2021Chinaconsumed

718millionmetrictonsofoilandproduced199millionmetric

tons,equalingadailyconsumptionlevelof15.442millionbarrelsanddailyproductionlevelof3.99millionbarrels.

10

AccordingtotheJanuary2023monthlyreportfromthe

OrganizationofthePetroleumExportingCountries(OPEC),theglobaldailydemandforcrudeoilin2022was99.55millionbpd.Thetotalsupplyfromthenon-OPECcountrieswas65.61millionbpdandthesupplyfromOPECcountrieswas28.89millionbpd.

11

11

Howlongwilltheworld’soilreserveslast?

Thecalculationofoilreservesexpressedintimeusuallyadoptsreserves-to-productionratio,avaluederivedfromtheamountof

remainingprovenreservesdividedbytheamountofoil

productioninoneyearatthecurrentrate.BPStatisticalReview

ofWorldEnergy2022estimatesthatthetotalglobalprovenoil

reserveswereat173.24billionbarrelsasoftheendof2020,whichcouldlastfor53.5yea