|
The American Petroleum Institute (API) devised a standard for measuring
the density of a liquid.
This involves laboratory tests of the oil at standard temperature and
pressure to determine its specific gravity. This number is introduced as x in the
following equation.
(141/x) - 131.5 = y° API
e.g. (141/.98) - 131.5 = 12.38° API
Heavy Oil in the Lloydminster area ranges between 9° and 18° API |
Barrels & "Cubes"
In the old days (and still in the U.S.A.), the volume of oil was measured
in "barrels"
What is a "barrel" of oil?
1 barrel = 0.158987 cubic meters
1 barrel = 34.99089 Imperial gallons
1 barrel = 42 U.S. gallons
1 barrel = 158.987146 liters
Now-a-days, oil volumes are measured in cubic meters or
"cubes" as they are referred to in the "oil patch"
1 cubic meter = 6.28994 barrels
1 cubic meter = 1,000 liters |
The Price of Oil
We often hear or read news reports about the price of oil. These are usually
quotes of the price (in U.S. dollars) of a barrel of West Texas Intermediate
(WTI) crude.
To translate this into our terms requires more fun with figures.
e.g. Price quoted as $58.00 per barrel for WTI. First we need to translate that
into Canadian dollars. 58 times current exchange rate (say 1.18) = $38.64 CAN per
barrel. Then 1 barrel = 158.987146 liters; so $68.44 divided by 158.987146 = 0.4304
or about 43.1 cents CAN per liter for the crude oil. {Note, this would be $431.00 CAN per
cube (cubic meter)}
Heavy crude, because it requires upgrading and more complex refining, typically sells
at a sharp discount to WTI (over 50%). |