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The Need For Oil Refinery Policies

By Kathleen Nelson


Most people realize that crude oil in its natural form must first be refined before it can be used by anyone. This refining process however is usually incredibly dangerous, costly, and complicated and as such must be performed with incredible caution and with various factors taken into account. This refining process is thus governed by oil refinery policies.

These documents are usually different based on the nation in which they are enacted, but they generally deal with the same issues. One great issues that is often covered in such documents is the process of extracting and refining the crude oil. This is important as the often unexpected location of crude oil make it and the environment vulnerable to inexpert tampering. These documents will strictly define the procedures to be used in the refinery process, daily amounts that is to be refined, and average daily output.

Ownership is also covered in policies governing oil refineries. In certain nations only bodies directly under the governments are allowed to mine, extract, and refine crude oil. Elsewhere, governments must issue a license to a private individual or company before they can set up refineries. Private parties will usually be heavily monitored to ensure compliance.

There are also many documents that must serve to reduce the wastage of crude oil and its many products. To ensure that the maximal output is reached there are practices which nations generally disallow and some that are strictly enforced. These policies will affect many of the activities which are performed during the extraction and refining process, an example of which is flaring.

Flaring is sometimes done at refineries in order to reduce the introduction of dangerous gases into the atmosphere. It is prohibited in certain countries as it leads to waste of natural gases. Over time, some nations have done away with flaring for more efficient methods.

Flaring is an act that eliminates dangerous gases that are produced during the refining process by lighting them on fire. Flaring is considered wasteful as it does away with natural gases that could otherwise be utilized. Many nations have replaced this with more efficient methods.

The complexity of the refining process and all related activities dictate the need for a rigorous and extensive set of oil refinery strategy. These blueprints will cover many issues including the issuance of licenses to private individuals and the requirements they will need to fulfill for this to happen. It will also cover the taxes and royalties which are to be paid by parties involve in the refining process.

There are many more issues that are covered under the oil refinery policy documents of affected oil producing nations. They include the licensing process and requirements for private parties, which is done to ensure that only capable parties are allowed to build oil refineries. There must also be documents that dictate the royalties and taxes required on the refined oil, which is put in place to protect the financial interest and investment of private parties. Another important aspect are the documents that ensure the safety of the oil after the refining process by dictating procedures for transportation and storage. Oil refinery policy documents must cover a host of other issues according to the nation out of necessity to guarantee optimal production.




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