The guy hauling oil off our Blaine County well said our oil was of high quality. He said it was 56 pounds and 88 degrees. I have no idea what this means. Will our oil sell for more than "average" oil? Thanks for the help!
The gravity of crude oil is measured in degrees. Generally speaking, oil with an API gravity between 40 and 45 commands the highest prices. Above 45 degrees the molecular chains become shorter and less valuable to refineries.
Crude oil is classified as light, medium or heavy, according to its measured API gravity.
- Light crude oil is defined as having an API gravity higher than 31.1 degrees.
- Medium oil is defined as having an API gravity between 22.3 °API and 31.1degrees
- Heavy crude oil is defined as having an API gravity below 22.3 degrees.
- Extra heavy oil is defined with API gravity below 10.0 degrees. This extra heavy crude is actually heavier than water.
So bottom line, if the gravity is 88, it is extremely light crude oil. Here are some typical price adjustment based on gravity from the posted price in various locations:
GRAVITY ADJUSTMENTS SCALE TO DEDUCT FROM POSTED PRICES
1. Less $0.015 per barrel for each 0.1 degree API below 40.0; less $0.015 per barrel for each 0.1 degree API above 44.9.
2. No deductions per barrel for each full degree API below 40.0 to 35.0; then less $0.01 per barrel for each 0.1 degree API below 35.0 to 30.0; then less $0.015 per barrel for each 0.1 degree API below 30.0; less $0.015 per barrel for each 0.1 degree above 44.9.
3. Less $0.02 per barrel for each full degree API below 40.9; less $0.015 per barrel for each 0.1 degree API above 44.9.
4. Less $0.015 per barrel for each 0.1 degree API below 40.0.