COMMODITY GLOSSARY

Definition: Crude Oil, or petroleum, is a fossil fuel natural resource consisting of hydrocarbons that is refined or separated into products for direct use or in manufacturing.  

Usage: Crude oil is refined and distilled into products such as gasoline, diesel, and kerosene, or chemical reagents used to make plastics, pesticides, and pharmaceuticals.  

Definition: Naphtha is a flammable liquid hydrocarbon mixture refined from crude oil.  

Usage: Naphtha is commonly used as a dilutant, fuel, and in the production of plastics.  

Definition: Gasoline or Petrol is a transparent, yellow, flammable petrochemical refined from crude oil.  

Usage: Gasoline is globally used as a fuel for internal combustion engines. It the most common fuel for individual passenger vehicles.  

Definition: Jet fuel is a series of complex kerosene or naphtha-based fuel mixture refined from crude oil, varying based on crude oil source.  

Usage: Jet fuel is used to power turbine engines including for jet engines and turboprops, in commercial, military, and private aircraft.  

Definition: Similar to gasoline, diesel fuel is a high-volume refined distillate of crude oil.  

Usage: Diesel fuel is used to power internal combustion engines. Because it is more efficient and energy dense than gasoline is it used for freight and delivery vehicles, public transportation, railways, industrial equipment, military equipment and maritime shipping.  

Definition: LNG is a natural gas, consisting of mostly methane with some ethane, that has been cooled to liquid form for ease and safety for transportation. LNG must be regasified to atmospheric temperatures before it can be consumed.  

Usage: LNG is the primary form of ocean transportation of natural gas. Natural gas is used for heat, power generation, cooking, fertilizers, and for manufacturing including production of hydrogen gas, animal feeds, fertilizers, and in production of fabrics, glass, steel, plastics, paint, and other products.  

Definition: Also known as methyl alcohol or wood alcohol, methanol is an organic chemical compound commonly distilled from natural gas.  

Usage: Methanol is a feedstock most used to produce formaldehyde, which is crucial for manufacturing plastics, resins, and plywood. Additionally, methanol is used as an industrial solvent, antifreeze, fuel, and in wastewater treatment.  

Definition: Ammonia is a pungent chemical made of nitrogen and hydrogen that is derived from natural gas using the Haber-Bosch process. Ammonia is commonly synthesized into urea, which is a solid, for safety and ease of transport.  

Usage: Most of the world’s produced ammonia is used to produce synthetic fertilizers as a vital source of nitrogen for crops. Ammonia is also used to produce plastics, fibers, nitric acid, and intermediates for pharmaceuticals.    

Definition: LPG or LP gas is a highly flammable mixture of energy rich hydrocarbon gasses, mostly consisting of propane and butane, derived from both natural gas processing and crude oil refining.  

Usage: LPG is commonly used as a fuel gas for heating, cooking, and for vehicles as Autogas. LPG is also used as aerosol propellant and off-the-grid refrigeration.  

Definition: Sulfur (S) is an abundant bright yellow crystalline chemical element. Sulfur is primarily produced as a by-product of refining fossil fuels. Crude oil is commonly graded by its sulfur content.  

Usage: Sulfur is primarily used in the production of sulfuric acid (battery acid), one of the most widely produced industrial chemicals. Sulfuric acid is a critical feedstock for the production of synthetic fertilizer and in mining and leaching processes.  

Definition: Helium (He) is a chemical element and the lightest noble gas. Although it is the second-most abundant element in the universe, helium is scarce on Earth and cannot be artificially manufactured at scale.  

Usage: Nearly all commercially produced helium is a byproduct of natural gas refining. Helium is primarily used for cryogenics, such as cooling MRI magnets, chip and electronics manufacturing, aerospace, industrial fabrication, and for balloons.