How Does Oil Extraction Work?
LPG is actually derived from plants using two basic chemical structures. LPG is commonly known as liquefied petroleum gas (LPG). LPG consists of ethylene (a byproduct of crude oil), butadiene (a chemical substance derived from plant life), and pentanes (a fuel), among other elements. Distillation yields a substance containing carbon dioxide, water, and one percent of other combustible material.
LPG is commonly blended with petroleum-based diesel or natural gas
to produce either diesel fuel or natural gas. Some industries, such as Texas, Oklahoma, and Pennsylvania, utilize natural gas as an alternative to LPG and some use synthetic natural gas. Synthetic LPG does not contain any trace of hydrogen or carbon. Ethanol is also a popular blend with the LPG market.
The demand for petroleum-based fuels
particularly diesel and natural gas, as well as the rising cost of crude oil has prompted several industries to look at new sources of energy. Among these are LPG and other liquid fuels. The U.S. federal government has been promoting the use of renewable sources of energy since the mid-19th century. Since then, the federal government has promoted the production and distribution of LPG as well as other LPG substitutes.
Although the U.S. Department of Energy
has long encouraged the development of liquefied petroleum gas (LPG), many developing nations have been unable to capitalize on this opportunity. In addition, although the federal government and other organizations promote the use of LPG for general consumption, they do not support its use as a source of home heating oil in homes. The consumption extraction of LPG and its byproducts has also been hindered by a lack of transportation means to extract it.
Most countries that export LPG prefer
to use the method of steam distillation to convert LPG into diesel and natural gas, or LPG into gasoline and heating oil. A few use chemically-assisted steam distillation to produce synthetic LPG. It is important to note that although some of the methods used to convert LPG to gasoline and other petroleum-based products are quite similar, the end product produced is generally much cleaner than petroleum-based diesel. However, the extent of the cleanliness of alternative fuel systems will vary across different countries, and their relative costs and environmental impacts will also vary.
If LPG cannot be brought from the United States
for use in North America, several suppliers ship LPG overseas, primarily through freight brokers. Freight brokers are companies that arrange for the transportation of large volumes of LPG in refrigerated containers, or “bulk storage”. One problem with using freight brokers is that they may not have the capacity to provide the capacity to transport large volumes of LPG, especially if they are unable to secure enough space for storing the product on-site. Nevertheless, several LPG manufacturers have been able to ship their own inventories overseas via freight brokers in recent years. This has allowed LPG exporters the opportunity to market their product in foreign markets where demand for crude oil and LPG is growing, but the logistics of importing LPG from distant locations may still be too great for most LPG exporters to consider.