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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: Think4Yourself who wrote (81757)12/15/2000 10:24:26 AM
From: Razorbak  Read Replies (1) of 95453
 
Q: Re, NGL's and Natural Gas

The BTU content of the natural gas in the commercial pipelines going to customers is NOT being raised.

What the article is describing is the economic choice that refineries have made to simply burn their own heavier gas products (which natural byproducts of the fractionation process used in processing crude oil into its various product streams) as fuel for their own furnaces rather than purchasing natural gas fuel from the commercial markets. It's purely an economic choice. Refinery furnaces can be operated with many different types of fuel. All the operator cares about is maintaining the correct temperatures required to produce the most optimal fractionation split of the feedstock at any given time. As market prices fluctuate, the operators will adjust the temperatures to produce the most valuable product streams that the market will bear at a given time.

Hope this helps.

Razor
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