Yes, synthetic crude is "hydrogenated" like margarine after it is made lighter by cracking in a coker. Industry types call it "hydrotreated" because, aside from adding hydrogen, they displace sulphur, oxygen and nitrogen from the hydrocarbon molecules. The end result is a low sulphur, low nitrogen, oxidatively stable light crude.
Synthetic crude is much more valuable than an equivalent API natural crude because it needs less processing to turn it into diesel, gasoline, etc.
One thing to consider for the oilsands is that those operators without upgrading capacity will be selling nasty, sticky, smelly, bitumen into a market full of other nasty, sticky, smelly heavy Canadian crudes. Unless more upgrading capacity is built, you can expect heavy oil differentials to remain high and to get even higher.
-g |
