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What Is Crude Oil and How Is It Extracted?

Written by Mercedes Fariña Salguero on September 5, 2025. Posted in Fuels. No Comments on What Is Crude Oil and How Is It Extracted?

The fuel we use every day comes from a natural resource formed millions of years ago: crude oil. Its geological origin and the process of extraction and transformation are key to understanding its value and its role in our daily lives.

But what exactly is crude oil? Let’s break it down step by step.

What Is Crude Oil and How Is It Extracted?

Exploration and Production

The process begins with exploration: geological and seismic studies identify potential reserves. Once a reservoir is confirmed, a well is drilled, and the oil is pumped to the surface. From there, it is stored in tanks and transported to refineries via pipelines, ships, or trucks, where it is converted into useful products.

Why Crude Oil Differs

Crude oil has varying characteristics that directly impact its market value, the type of products it can yield, and how easy (or difficult) it is to refine. These differences also determine which refineries can process it and how it is traded internationally.

By Density

Light Crude: More fluid, rich in lighter hydrocarbons, easier to refine. Ideal for gasoline and diesel.
Heavy Crude: Thicker, with more impurities. Refining is costlier, typically used for asphalt and fuel oil.

By Sulfur Content

Sweet Crude: Contains less than 0.5% sulfur. Cleaner, easier to process.
Sour Crude: Higher sulfur content, harder and more expensive to refine, and more polluting if not properly treated.

Laboratory samples of crude oil for quality analysis

Why Crude Quality Matters

The quality of crude oil influences not only its price and end use but also determines which refineries can process it and how it is traded in international markets.

In short, the quality of crude oil plays a central role in its commercialization. What seems as simple as filling up your car is the outcome of a process that began millions of years ago underground. Each type of crude represents a different technical and economic challenge for the entire energy chain.

What seems as simple as refueling is the result of processes that started millions of years ago underground. Depending on its characteristics, crude oil changes in value, treatment, and what it can produce.

Low-Sulfur Fuels: A New Course for Maritime Transport

Written by Mercedes Fariña Salguero on June 16, 2025. Posted in Fuels.

The Shift That’s Cleaning Our Oceans

In January 2020, a major international regulation came into effect, marking a turning point for maritime transport: the IMO 2020 regulation. This initiative from the International Maritime Organization (IMO) limits the sulfur content in marine fuels to just 0.5% m/m (mass by mass), down from the previous 3.5%.

It may seem like a minor technical change, but it has a direct and positive impact on the air we breathe. It also represents a significant transformation for shipping companies, ports, and global logistics.

Ship at sea after IMO 2020 implementation

Why Was It Necessary to Reduce Sulfur in Marine Fuels?

The Invisible Pollution of the Sea

Until recently, ships used fuels with high sulfur content. When burned, these fuels release sulfur oxides (SOx), gases that are harmful to human health and contribute to acid rain and the degradation of marine and coastal ecosystems.

In some port areas, pollution levels caused by maritime traffic were comparable to those of heavy urban traffic. This particularly affected coastal communities, who were exposed daily to harmful emissions.

A Breath for the Planet

The implementation of the IMO 2020 regulation has drastically reduced SOx emissions from ships. According to data from the IMO itself, this measure is expected to prevent over 570,000 premature deaths worldwide over the next five years.

How Did the Maritime Industry Adapt?

New Fuels, New Solutions

To comply with the regulation, shipping companies had to adapt quickly. The most common options were:

Switching to low-sulfur fuel oil (LSFO) that meets the new limit.

Installing scrubbers to remove sulfur from exhaust gases.

Investing in alternative fuels such as liquefied natural gas (LNG), which contain no sulfur.

Investment and Long-Term Commitment

This transition has not been easy or cheap. It required investments in technology, staff training, and the redesign of routes and operations. However, it has also strengthened the industry’s commitment to cleaner, more efficient, and more sustainable transport.

Benefits That Go Beyond the Sea

Improved Public Health

Less sulfur in the air means fewer respiratory illnesses, fewer hospitalizations, and a direct improvement in the quality of life for millions of people.

Greater Competitiveness and Reputation

Companies that have adapted quickly to this regulation are not just complying with the law—they’re gaining a competitive edge. Operating more sustainably enhances brand reputation, attracts environmentally conscious customers, and opens the door to new business opportunities.

What Comes Next?

IMO 2020 was just the first step. The transition toward greener maritime transport will continue with new regulations focused on energy efficiency, renewable fuels, and carbon footprint reduction.

In this shifting landscape, staying informed and prepared is not optional—it’s a strategic necessity.

Choosing low-sulfur fuels is not just mandatory. It’s a decision that reflects the future we want to build: one where trade continues to grow without leaving a trail of smoke behind.