After water, oil is another liquid that humans have the highest dependency on. Oil is a source of fuel and is found in many consumer products. Crude oil is a complex mixture of thousands of molecules and organic compounds.
However, hydrocarbons, with different molecular weights, make up the majority of it. Therefore, the chemical formula of crude oil cannot be explicitly determined. The properties of crude oil, such as viscosity, density, boiling point, and color, also vary accordingly.
Furthermore, the most abundant hydrocarbons in petroleum chemistry are alkanes. This valuable liquid also contains cyclohexanes, aromatic hydrocarbons, and more complex hydrocarbons such as asphaltenes. Crude oil is obtained through oil well drilling, and its constituent compounds are separated through a process called distillation. The term "crude oil" generally refers to unrefined crude oil and is used for the unprocessed crude oil and other products derived from it.
Classification of Crude Oil:
Geographical Classification:
In general, there are three reference types of crude oil in the world for pricing, including Brent crude, West Texas Intermediate (WTI) crude, and Oman crude. Brent crude consists of a blend of 15 North Sea oils, ranging from Scottish fields to Norway, and it is mainly exported to Europe.
WTI crude is a high-quality and light crude oil produced in Texas, USA, which supplies the needs of North America. Oman crude, also known as Dubai crude, is the pricing benchmark in the Persian Gulf. OPEC crude is another reference for pricing, with Iran and most Asian oil-exporting countries being members.
API Grade Classification:
API (American Petroleum Institute) is a unit used to compare the density of crude oil with water. There are different classifications of crude oil based on API gravity, but generally, crude oil below 15 degrees API is considered heavy oil, while above 15 degrees API is considered light oil. Heavy oil contains sulfur and metals and requires more refining compared to light oil.
Sulfur Content Classification:
Sulfur is a harmful impurity in crude oil that causes corrosion of metals and air pollution. Crude oil with more than 0.5% sulfur is known as sour crude, while if the sulfur content is lower, it is called sweet crude. Sweet crude is considered superior due to its higher purity and less impact on the environment.
Crude oil has various applications beyond being a fuel source, gasoline, or diesel. It plays a significant role in society, politics, technology, and the economy. For example, the sale of Iranian crude oil has significant economic benefits for the country and also influences diplomatic relations. In addition to fuel, a large amount of oil is used in the production of products in modern life. Here are some of the uses of crude oil:
Agriculture:
Crude oil is used in the production of ammonia, which provides the necessary nitrogen source for fertilizer production. Pesticides are also made from oil. In general, petroleum products have extensive applications in agriculture due to their assistance in the functioning of farm machinery and plant fertilization.
Detergents, Colors, and Other Materials:
Oil distillates, including toluene, benzene, and xylene, are used to produce raw materials that are widely used in products such as synthetic detergents, colors, and fabrics. Benzene and toluene, which produce polyurethanes, are often used in oils or surfactants and are also used for wood polishing.
Rubber, Plastics, and Others:
Plastics are mostly made from petrochemicals. Petrochemical-based plastics such as nylon or polystyrene and other materials are made from this combination. Typically, plastics are made from olefins, including ethylene and propylene. Oil and its compounds are also used to produce oil-based paints or color additives.
Oil is also used in the production of synthetic rubber for use in shoe soles, automobile tires, and other rubber products.
Pharmaceuticals and Cosmetics:
By-products of oil, such as mineral oils, are used in many creams and other drugs. Oil-based cosmetic products and perfumes are derived from petroleum products.
Other products made from or containing oil include wax, ink, vitamin capsules, artificial tooth adhesive, toilet seats, furniture upholstery, CDs, asphalt, guitar strings, colored pencils, pillows, artificial grass, hair dye, deodorants, lipstick, heart valves, cortisone anesthesia drugs, aspirin, and many other items.
Crude Oil Exports:
Iran's crude oil exports have fluctuated significantly over the past decade due to U.S. sanctions, the nuclear agreement, and the COVID-19 pandemic, but there are signs of an increase in exports this year.
Iranian crude oil exports before sanctions:
Before the U.S. imposed oil sanctions on Iran in 2012, Iran's average daily oil exports in the year leading up to the sanctions reached 2,537,250 barrels. However, with the announcement of the sanctions on March 31, 2012, this amount decreased to 2,102,000 barrels per day.
"This downward trend continued in 2013 and 2014, and Iran's exports decreased to 1,215,410 barrels and 1,109,175 barrels, respectively.
JCPOA: Short-term improvement in Iran's oil exports
On July 14, 2015, Iran reached an agreement with the P5+1 countries (the United States, France, the United Kingdom, China, and Russia, the five permanent members of the United Nations Security Council, plus Germany, along with the European Union) on the Joint Comprehensive Plan of Action, commonly known as the nuclear deal. This agreement apparently had a positive impact on Iran's oil exports.
In 2015, Iran's oil exports reached 1,081,145 barrels, and this amount gradually increased. In 2016, it averaged 1,921,730 barrels per day.
Return of Iran's crude oil exports to 2.2 million barrels in 2023
According to reports from Iranian and international media, Iran's oil production reached 3.2 million barrels in the first half of 2023. On the other hand, oil exports in the first 20 days of August reached 2.2 million barrels per day. According to some Iranian officials, Tehran intends to increase both its daily production and exports.
Main destinations of Iran's oil exports
Before the reimposition of sanctions, Turkey, Japan, South Korea, China, and some American countries were the main customers of Iran's oil. However, this situation changed with the return of US sanctions.
According to analysts at J.P. Morgan, since the US withdrawal from the JCPOA, Iran has only exported oil to China, Syria, and Venezuela. China, as the largest customer of Iran's oil, purchases approximately 85% to 95% of the country's exported oil.
In August of this year, Iran has exported 1.5 million barrels per day of crude oil to China, which is the highest level since 2013.
Syria and Venezuela are also customers of Iran's oil, with daily volumes of 50,000 to 70,000 barrels."
