Petroleum is a complex mixture of organic liquids called crude oil and natural gas, which occurs naturally in the ground and was formed millions of years ago. Crude oil varies from oilfield to oilfield in colour and composition, from a pale yellow low viscosity liquid to heavy black 'treacle' consistencies.
Crude oil and natural gas are extracted from the ground, on land or under the oceans, by sinking an oil well and are then transported by pipeline and/or ship to refineries where their components are processed into refined products. Crude oil and natural gas are of little use in their raw state; their value lies in what is created from them: fuels, lubricating oils, waxes, asphalt, petrochemicals and pipeline quality natural gas.
An oil refinery is an organised and coordinated arrangement of manufacturing processes designed to produce physical and chemical changes in crude oil to convert it into everyday products like petrol, diesel, lubricating oil, fuel oil and bitumen.
As crude oil comes from the well it contains a mixture of hydrocarbon compounds and relatively small quantities of other materials such as oxygen, nitrogen, sulphur, salt and water. In the refinery, most of these non - hydrocarbon substances are removed and the oil is broken down into its various components, and blended into useful products.
Natural gas from the well, while principally methane, contains quantities of other hydrocarbons - ethane, propane, butane, pentane and also carbon dioxide and water. These components are separated from the methane at a gas fractionation plant.
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