LATEST UPDATES
Card-image-cap

Market | Commodities

What is so Great About Nigeria’s Crude Oil?

Dec 20, 2022   •   by   •   Source: LCFE   •   eye-icon 431 views

Nigeria’s crude oil (Bonny light) has been classified as one of the best forms of crude oil being produced. But the question ‘what makes it so good’ is determined by two factors: weight and sulfur content. Not all crude oil is created equal. 

There are various types of crude oil, just as there are various types of crude oil derivatives — diesel, gasoline, kerosene (jet fuel), fuel oil, bunker fuel, plastics, synthetics, cosmetics, household products, and so on. Different crudes not only have different ingredients, but each crude oil has a different quality. Some crude oils are superior to others. (U.S. Energy Information Administration, 2012).

The two qualities used to evaluate crude oil are sulfur content and weight. On the global market, high-sulfur, heavy oils have the lowest quality and are the least expensive. Because they are of the highest quality, low-sulfur, light oils command the highest price. (Rentar Fuel Catalyst , 2018)

High-sulfur crude oil is of lower quality for three reasons. The first reason is that high-sulfur crude oils emit more emissions, particularly toxic emissions with a high global warming potential. The sulfur in sour crude reacts with various air components to produce toxic emissions such as sulfuric acid and nitric oxide. (Rentar Fuel Catalyst , 2018)

The second reason for the lower quality of high-sulfur crude oil is that high-sulfur oils cause oxidation and corrosion. Refining high-sulfur crude oil is costly due to its high oxidation and corrosion properties. If a refinery is not properly equipped to handle high-sulfur crude oil and is not properly maintained on a regular basis, the oxidation and corrosion damage caused will outweigh the profits. (Rentar Fuel Catalyst , 2018)

The third reason high-sulfur crude oil is less valuable is that the higher the sulfur content, the lower the hydrocarbon content — hydrocarbons being the component of petroleum that combusts and generates energy. Carbon and hydrogen account for approximately 98 percent of the content of a typical crude oil type. The rest is made up of sulfur (1-3%), nitrogen, oxygen, metals, and salts (less than 1 percent each). 

(Rentar Fuel Catalyst, 2018)

The more sulfur crude oil contains, the less energy it produces per gallon, barrel, or liter. This is the main reason why Nigerian crude oil (Bonny light) is regarded as one of the better forms of crude oil, and why based on pricing bonny light tends to be amongst the most expensive.



Related items.

Get the App

apple-store  play-store

Connect with us


Proshare is a professional practice focused on delivering research and information services to bridge the gap between investors and markets; by delivery on credible, reliable, and timely engagements through the following areas — Impact Research, Market Intelligence, Strategic Advisory, Stakeholder Relations & Digital Media.