GlossaryAframax Worldscale freight rate
A freight market indicator quoted based on Worldscale by the Baltic Exchange in London for deliveries between Sullom Voe and Rotterdam carried by tankers with a cargo-carrying capacity of more than 80,000 tons.
API gravity
The API gravity illustrates the density of crude oil classified by the American Petroleum Institute. The API gravity is defined as: 141.5 - 131.5/ Gravity of specific crude oil at 15.6 C. Thus, the higher the API gravity is, the lighter is the crude oil.
Aromatics
Hydrocarbons characterized by having at least one benzene ring and known as aromatics because of their distinctive, sweet odor. Common aromatics include toluene and xylene.
Atmospheric crude distillation
The first step in the refining process. Before atmospheric crude distillation, crude oil is heated up to temperatures of about 600 Fahrenheit degrees (316 C) to 750 Fahrenheit degrees (399 C), depending on the nature of the crude oil and desired refined petroleum products. During atmospheric crude distillation, crude oil components are separated at atmospheric pressure in the distillation tower. The components of crude oil vaporize in succession at their various boiling points, then rise to prescribed levels within the distillation tower according to their densities, condense in distillation trays and are finally drawn off for further refining.
Atmospheric crude distillation capacity
A maximum amount of feedstock that the atmospheric crude distillation units of a refinery are able to process.
Aviation fuels
Jet fuels and aviation gasolines.
Barrel or bbl
Barrel of crude oil, 159 liters by volume.
Base oil
The main component of lubricant blends.
Biofuel
Gasoline or diesel fuel, which contains components derived from renewable raw materials, such as vegetable oils and grain.
Bitumen
The residual product of crude oil vacuum distillation. A black or dark brown solid or semi-solid organic compound that gradually softens and turns to liquid when heated.
Bpd
Barrels per day.
CIF
Cost, insurance and freight. A delivery term that includes the costs as well as freight and insurance charges of the delivery of goods to a named destination as defined in the ICC Incoterms 2000.
CO2
Carbon dioxide, a significant greenhouse gas.
Condensates
Natural gas liquids used as feedstocks in oil refining.
Cracking
The conversion of large hydrocarbon molecules into smaller ones. Cracking is carried out either at high temperatures (thermal cracking), or with the aid of a catalyst and high pressure (catalytic cracking and hydrocracking). The cracking process enables greater quantities of saturated hydrocarbons suitable for gasoline and other light fractions to be recovered from crude oil.
Distillate
Any of wide range petroleum products produced by distillation, the primary refining step in which crude oil is separated into fractions or components.
Dwt
Dead-weight ton. A vessel’s cargo-carrying capacity measured in tons.
EHVI base oil
Enhanced high viscosity index base oil, a key component of high-quality motor oils that reduce engine fuel consumption.
ETBE
Ethyl tertiary butyl ether, ethanol based gasoline component reducing the overall environmental impact of gasoline.
Fame
Fatty Acid Methyl Ester, conventional biodiesel produced by esterification.
Feedstocks
Crude oil and other hydrocarbons used as basic materials in a refining or manufacturing process.
Fluid catalytic cracking
The refining process of breaking down the larger, heavier, and more complex hydrocarbon molecules into simpler and lighter molecules. Fluid Catalytic Cracking is accomplished by the use of a catalytic agent, which is continuously regenerated and is an effective process for increasing the yield of gasoline from crude oil. Catalytic cracking processes fresh feedstocks as well as recycled feedstocks.
FOB
Free on board. A delivery term denoting that the seller is responsible for delivering goods on board a ship or other conveyance for carriage to the consignee at a specified loading port as defined in the ICC Incoterms 2000.
Futura
A brand name for Neste Oil’s gasolines and special gasolines as well as for diesel oils.
Gasoil
A general term for diesel fuel and heating oil.
Gasoline
A light liquid petroleum product with a boiling range of 30–200_C which is typically used as a fuel for internal combustion engines.
GHG
Greenhouse gases.
Heating oil
A fuel oil with an ignition temperature over 55 C. Heating oil is used in oil-fired heating plants and boilers, and as a dieselequivalent to power some types of machinery.
Heavy fuel oil
Fuel oil with a distillation range of over 350 C. Heavy fuel oil is used in heat plants, power stations and industrial furnaces.
Heavy residue hydrocracking unit
A hydrocracking unit of an oil refinery that converts vacuum residue (i.e., short residue) into traffic fuels.
HSEQ
Health, safety, environment, quality.
HVO
HVO Hydrotreated Vegetable Oil – a highquality biofuel produced by hydrotreating vegetable oil or animal fat.
ICC Incoterms 2000
Standardized delivery terms for goods issued by the International Chamber of Commerce, which allocate the costs and liabilities of deliveries between sellers and purchasers of goods.
IGO
Intergovernmental organizations.
ISCC
International Sustainability and Carbon Certification
ISO
The International Organization for Standardization.
ISO 9001
An international standard established by the ISO to certify quality management systems.
ISO 14001
An international standard established by the ISO to certify environmental management systems.
Iso-octane
A high-octane and low RVP gasoline blending component derived and produced from field butane.
LOPC
(Loss of Primary Containment) – any non-planned discharge of material that gets outside its primary containment or from area of intended use; may also mean two products mixing by accident and not necessarily in the environment.
LPG
Liquefied petroleum gas. A gas mixture used for fuel purposes, containing propane, propene, butane, or butene as its main components, that has been liquefied to enable it to be transported and stored under pressure.
Lubricants
Fluids used to reduce friction and wear between solid surfaces (typically metals) in relative motion. Lubricants are generally derived from petroleum.
MK-1 diesel
A Swedish diesel fuel quality. MK-1 diesel has a low density (minimum of 800 kg/m3 and maximum of 820 kg/m3 at 15 C), low aromatics content (maximum of five volume percent), non-measurable polyaromatics content and maximum sulphur content of 10 ppm. The 95 percent point of distillation is more than 285 C.
MTBE
Methyl tertiary butyl ether, a high-octane component, and oxygenate, used in the production of low-emission gasoline.
Naphtha
A low-octane gasoline product used as a feedstock by the chemicals industry, as a feedstock for catalytic reforming, and in the production of hydrogen.
Natural gas
Any hydrocarbons or mixture of hydrocarbons and other gases consisting primarily of methane which at normal operating conditions is in a gaseous state.
NExBTL diesel
Neste Oil has developed a premium-quality renewable diesel production technology, that can use a flexible mix of vegetable oil and waste fat from the food industry to produce premium-quality NExBTL Renewable Diesel. NExBTL diesel is compatible with the existing vehicle fleet as well as diesel fuel logistic system and is technically easy to blend in conventional diesels in all rations.
NExBTL technology
NExBTL is a technology developed by Neste Oil to produce high quality biodiesel from any vegetable oil or waste fat from the food industry. Neste Oil's NExBTL technology allows Neste Oil to use flexible feedstocks and to produce diesel with premium qualities.
NExETHERS and NExTAME
NExETHERS and NExTAME are Neste Oil’s proprietary technologies for combined production of ethers in one unit. The technologies result in high yields of gasoline ethers and almost total conversion of feed alcohol and offer refiners an opportunity to maximize oxygenate production. Ethanol ethers give an easy access for refineries to blend biofuels into the gasoline pool.
NExOCTANE
NExOCTANE is Neste Oil’s proprietary technology and it converts selectively isobutylene to premium quality gasoline.
The product comprises primarily of iso-octane that can be saturated from iso-octene. Both iso-octene and iso-octane have excellent blending properties. The technology gives a cost effective route to convert MTBE units into production of a high-value product.
NGO
Non-governmental organizations.
NOx
Nitrogen oxides. Permanent nitrogen compounds, some of which destroy stratospheric ozone and some of which are
‘‘greenhouse’’ gases that may contribute to global warming.
OHSAS 18001
International standards used to certify occupational health and safety management systems.
PAO
Polyalphaolefin. The main component of synthetic lubricants.
Petrochemicals
An intermediate product of oil refining which is used as a feedstock for polymers and various other chemical products.
Ppm
Parts per million.
Probable reserves
In general, probable reserves may include (1) reserves anticipated to be proved by normal step-out drilling where ubsurface control is inadequate to classify these reserves as proved, (2) reserves in formations that appear to be productive based on well log characteristics but lack core data or definitive tests and which are not analogous to producing or proved reserves in the area, (3) incremental reserves attributable to infill drilling that could have been classified as proved if closer statutory spacing had been approved at the time of the estimate, (4) reserves attributable to improved recovery methods that have been established by repeated commercially successful applications when (a) a project or pilot is planned but not in operation and (b) rock, fluid, and reservoir characteristics appear favorable for commercial application, (5) reserves in an area of the formation that appears to be separated from the proved area by faulting and the geologic interpretation indicates the subject area is structurally higher than the proved area, (6) reserves attributable to a future workover, treatment, re-treatment, change of equipment, or other mechanical procedures, where such procedure has not been proved successful in wells which exhibit similar behavior in analogous reservoirs, and (7) incremental reserves in proved reservoirs where an alternative interpretation of performance or volumetric data indicates more reserves than can be classified as proved.
Proved reserves
In general, reserves are considered proved if the commercial producibility of the reservoir is supported by actual production or formation tests. In this context, the term proved refers to the actual quantities of petroleum reserves and not just the productivity of the well or reservoir. In certain cases, proved reserves may be assigned on the basis of well logs and/or core analysis that indicate the subject reservoir is hydrocarbon bearing and is analogous to reservoirs in the same area that are producing or have demonstrated the ability to produce on formation tests. The area of the reservoir considered as proved includes (1) the area delineated by drilling and defined by fluid contacts, if any, and (2) the undrilled portions of the reservoir that can reasonably be judged as commercially productive on the basis of available geological and engineering data. In the absence of data on fluid contacts, the lowest known occurrence of hydrocarbons controls the proved limit unless otherwise indicated by definitive geological, engineering or performance data. Reserves may be classified as proved if facilities to process and transport those reserves to market are operational at the time of the estimate or there is a reasonable expectation that such facilities will be installed. Reserves which are to be produced through the application of established improved recovery methods are included in the proved classification when (1) successful testing by a pilot mproject or favorable response of an installed program in the same or an analogous reservoir with similar rock and fluid properties provides support for the analysis on which the project was based, and (2) it is reasonably certain that the project will proceed. Reserves to be recovered by improved recovery methods that have yet to be established through commercially successful applications are included in the proved classification only (1) after a favorable production response from the subject reservoir from either (a) a representative pilot or (b) an installed program where the response provides support for the analysis on which the project is based and (2) it is reasonably certain the project will proceed.
PSE
(Process Safety Event) – an unplanned or uncontrolled discharge of material (LOPC) from a process, or an undesired event or condition that, under slightly different circumstances, could have resulted in a LOPC of a material.
Refinery
A facility used to process crude oil. The basic process unit in a refinery is a crude oil distillation unit, which splits crude oil into various fractions through a process of heating and condensing. Simple, or hydroskimming, refineries normally have crude oil distillation, catalytic reforming, and hydrotreating units. The demand for lighter petroleum products, such as motor gasoline and diesel fuel, has increased the need for more sophisticated mprocessing. Complex refineries have vacuum distillation, catalytic cracking, or hydrocracking units. Cracking units process vacuum oil into gasoline, gasoil, and heavy fuel oil.
Reformulated gasoline
An advanced type of motor gasoline formulated to produce lower environmental emissions than conventional gasolines.
Renewable energy
Renewable energy sources include wood and biomass, as well as solar, wind and tidal energy, and hydroelectric power.
ROACE
Return on Average Capital Employed, After Tax.
RSPO
Roundtable on Sustainable Palm Oil -organization.
RSB
Roundtable on Sustainable Biofuels -organization.
RTRS
Round Table on Responsible Soy -organization.
SO2
Sulphur dioxide, the combustion product of sulphur, which is formed through the use of fuels containing sulphur.
Solvent
A liquid that is used for diluting or thinning a solution. A liquid that absorbs another liquid, gas, or solid in order to form a homogeneous mixture.
SPE
Society of Petroleum Engineers.
Spot market
With respect to commodities such as oil, a term used to describe the international trade in one-off cargoes or shipments of commodities, such as crude oil, in which prices closely follow demand and availability.
Sulphur-free fuel
Fuel with a sulphur content less than 10 mg/kg (ppm).
TAME
Tertiary amyl methyl ether, a high-octane component, or oxygenate, used in the production of low-emission gasoline.
Ton
1 metric ton (1,000 kilograms) or approximately 2,205 pounds.
Worldscale
A standard system for assessing freight rates. A set of base charter rates is published annually for a theoretical standard vessel plying its trade between each of the world’s most common shipping origins and destinations. Spot freight rates are commonly expressed as percentages of those theoretical rates.
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