EBF 301
Global Finance for the Earth, Energy, and Materials Industries

Reading Assignment: Lesson 4


The refining of crude oil is a complex process. In preparation for this topic, please complete the reading assignment below. My lecture will closely follow the steps in refining as outlined here.

Reading Assignment:

Crude Oil Refining Process

Go to HowStuffWorks: "How Oil Refining Works" and read pages 1 through 6 in preparation for the mini-lecture on Crude Oil Refining. As you read the sections, keep these questions in mind:

  1. What is meant by “crude” oil?
  2. What are the two main refining processes?
  3. What are the various products derived from raw crude oil?
  4. How does “distillation” work?
  5. What is “cracking”?
  6. What is “reforming”?
  7. What is “alkylation”?

Cushing, OK - NYMEX Crude Oil Hub

  • Article on why Henry Hub was chosen as the pricing point for North American natural gas.
    The Henry Hub article is very old (2012). Paragraph 2 talks about the potential for LNG exports but this is happening now.  You might be able to find something more current on the authors blog here: https://rbnenergy.com/daily-energy-post