December 2017

Columns

Refining: What is blending?

Not a day passes without publications, the blogosphere and pundits wringing their hands over the concept of fuel blending. In today’s low-priced crude oil market, the fuel blending business gives blenders a competitive edge that grows every day, attracting new customers and potential new producers intrigued by the possibility of making “easy” money.

Curcio, L. E., Refinery Automation Institute, LLC

Not a day passes without publications, the blogosphere and pundits wringing their hands over the concept of fuel blending. In today’s low-priced crude oil market, the fuel blending business gives blenders a competitive edge that grows every day, attracting new customers and potential new producers intrigued by the possibility of making “easy” money. The US has more than 330 oil terminals spread across the country that move more than 2 Bgal of oil products. “Smart” blending adds another $300 MM–$400 MM in potential profits. This cash flow tempts some people to ask for loans to open a new blending facility to “get rich quick.” The real question for prospective facility owners before undertak

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