Oil refinery

An oil refinery or petroleum refinery is an industrial process plant where crude oil is processed and refined into more useful products such as petroleum naphtha, gasoline, diesel fuel, asphalt base, heating oil, kerosene and liquefied petroleum gas. Oil refineries are typically large, sprawling industrial complexes with extensive piping running throughout, carrying streams of fluids between large chemical processing units. In many ways, oil refineries use much of the technology of, and can be thought of, as types of chemical plants. The crude oil feed stock has typically been processed by an oil production plant. There is usually an oil depot (tank farm) at or near an oil refinery for the storage of incoming crude oil feedstock as well as bulk liquid products.

An oil refinery is considered an essential part of the downstream side of the petroleum industry.

Operation

Raw or unprocessed crude oil is not generally useful in industrial applications, although "light, sweet" (low viscosity, low sulfur) crude oil has been used directly as a burner fuel to produce steam for the propulsion of seagoing vessels. The lighter elements, however, form explosive vapors in the fuel tanks and are therefore hazardous, especially in warships. Instead, the hundreds of different hydrocarbon molecules in crude oil are separated in a refinery into components which can be used as fuels, lubricants, and as feedstocks in petrochemical processes that manufacture such products as plastics, detergents, solvents, elastomers and fibers such as nylon and polyesters.

Oil Refineries

Oil Refineries Ltd. (ORL or BAZAN, Hebrew: בז"ן – בתי זיקוק לנפט בע"מ‎), is an oil refining company located in Haifa Bay, Israel. It operates the largest oil refinery in the country. ORL has a total oil refining capacity of approximately 12.8 million tons of crude oil per year with a Nelson complexity index of 10.

History

Its origins date to the British Mandate for Palestine when Consolidated Refineries Limited (CRL), a joint venture of Shell and the Anglo-American Oil Company (now Esso), started constructing the complex which sat at the end of the British-built Mosul-Haifa oil pipeline which stretched from the oil fields near Kirkuk in then British-controlled Iraq. Construction of the refinery started in 1938 and was carried out by the M. W. Kellogg Co. with assistance from Solel Boneh, and was completed in 1944. During World War II, the complex supplied refined products to British and American forces operating in the Mediterranean and North African theaters, and was bombed 21 times during the early stage of the war, though the damage it suffered was quickly repaired. Due to concerns about the Arab League Boycott, the British Government sold CRL to the State of Israel in 1958 which then changed its name to Oil Refineries Ltd. Since then the complex has undergone significant expansion and upgrades. In the past, ORL also owned the Ashdod Oil Refinery in southern Israel and therefore as a company, it held a monopoly over oil refining in the country. This changed in 2006, when Israel's Government Companies Authority, headed by Eyal Gabbai started privatization processes. The Ashdod facilities were sold to the Paz Oil Company, while at the same time ORL became a public company and its shares were listed on the Tel Aviv Stock Exchange.