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I thought the fractions were relatively straightforward to convert to balance demand? I don't really have good intuition for the economics of it though.
by jjoonathan 3y ago
I thought the fractions were relatively straightforward to convert to balance demand? I don't really have good intuition for the economics of it though.
- actionfromafar 3y agoTechnology wise, sure. But I can imagine it could take a lot of effort to convert all refineries. And I think it’s much easier to crack heavier fractions than to combine lighter hydrocarbons to heavier?
- AnimalMuppet 3y agoIf I understand correctly, we want more gasoline than the natural fraction in petroleum. So refineries "crack" longer molecules to create shorter ones, increasing the amount of gasoline. I'm not sure if that's the gasoline subsidizing the heavier fractions. It might be the other way around. There would be more heavier fractions available if we didn't crack them, and therefore they'd be cheaper.
- actionfromafar 3y agoThat still requires changes to the refineries, but even so, when the cracking is eventually turned off, the same mechanism remains.