Saturday, October 28, 2017

Why Oil Refinery Policies Are Important

By Kathleen Nelson


It is common knowledge that what crude oil that exists within the ground must be found, extracted and then refined in order to be of any use to people. The process of refining is incredibly complicated, expensive, and potentially dangerous to people and the environment. In order to make this process as streamlined, safe, and ethical as possible, there are oil refinery policies set in place.

These documents are put in place in order to ensure that the process of refining crude oil is efficient, profitable, and safe for the people and their environment. These documents are different depending on the country but are usually similar on the elements they cover.

The oil refinery blueprint must also cover the ownership of the crude oil. There are complex legal ramifications of discovering crude oil, and these policies help to govern them. Some nations do not allow the mining, extraction or refining of crude oil by none governmental organizations. In other countries however, private parties are given this freedom. However, this must be done according to what the government has put in place, and they are as such highly monitored.

Crude oil is a crucial and dwindling resource that calls for heavy regulation to prevent waste and misuse. It cannot be easily replenished and so a lot of nations have a lot of policies set in place to ensure that the oil refining process delivers optimal resources. These blueprints will directly affect the refining process and potentially wasteful activities such as flaring.

Crude oil is a finite resource and so it is important to ensure that crude oil is efficiently refined in order to maximize output and minimize wastage. There are documents in place to ensure these depending on the nations and these policies will cover various activities practiced in the refining process, one of which is flaring.

Refining also poses potentially great danger to the environment and the people within it. The process of refining produces byproducts which come in many forms. These include smoke, sludge, dangerous gases, and toxic materials. These byproducts must be handled carefully in order to minimize their effect on the environment and there are policies which dictate the procedures that are to be observed during handling. These documents will also cover the disposal of these harmful byproducts according to the discretion of the nation.

The various oil refinery documents will necessarily cover a wide range of activities related to the oil refinery process. They will cover such things as the issuance of license and the requirements that must be met, in order to ensure that private parties involved are capable and responsible. These blueprints will dictate the procedures of taxation and royalties in order to safeguard the financial interests of all parties concerned.

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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