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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: Snowshoe who wrote (69420)5/23/2008 6:10:32 AM
From: Elroy Jetson  Read Replies (3) of 74559
 
Using both Cracking and Reforming processes you can end up with 55% gasoline and 10% diesel, all depending on the crude oil used, as Maurice points out.

Utilizing Hydro-cracking, where the cracking process takes place with hydrogen usually from natural gas, and Hydro-treating, you can produce 29% gasoline and 29% diesel with the missing balance turned out as jet fuel.

Alternate varieties of these hydrogen addition processes can produce 85% to 90% diesel and jet fuel, with a small balance of gasoline.

Rebuilding a refinery during shut-down to add or change this type of hydro processing will run say $200 million to slightly more than one billion dollars.

A few percentage points change in mix can be achieved by changing temperatures, inputs, or catalysts at shut-down for essentially no charge.
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