You should know, bitumen is a low-grade of crude oil that is composed of complicated, heavy hydrocarbons.besides, in an oil reservoir, bitumen is a thick, viscous fluid and must be extracted from the earth.even when expelling it, a lot of heat and effort must be utilized to upgrade it to a better product.however; bitumen is hard to extract from the land , it can bubble normally to the surface of the Earth in petroleum seeps.
Moreover, these seeps are places in which fossil fuels and petroleum products leak out of the earth instead of being trapped deep below the earth. In these seeps, bitumen, asphalt, and tar bubble up into pools. In addition, bitumen is the main fossil fuel component of oil sands and when bitumen combines with asphaltines a solid is formed that is useful for paving roads.bitumen price per barrel is various and we talk about it below.
What is bitumen used for?
You should know, the most refined bitumen is utilized in the construction industry. Basically, it serves its use in paving and roofing applications and approximately 85 percent of all bitumen is utilized as a binder in asphalt for roads, runways, parking lots, foot paths, and etc.besides, Gravel and crushed rock are mixed with thick bitumen, holding it together and it is then applied to roadways. About 10 percent of the bitumen utilized in worldwide is used in the roofing industry as its waterproofing qualities help make roofs function well.meanwhile, 5 percent of bitumen is used for sealing and insulating purposes in various building materials such as carpet tile backing and paint.
additionally, to these main uses, bitumen also has many minor uses. Other examples are soundproofing, explosives, mildew protection, a binder in briquettes, a backing to mirrors, shoe soles, fence post coating and soil stabilization.
Bitumen price per barrel in recent years
In fact, sustained crude oil price increases have led to raised investment in and production of Canadian bitumen to supplement North American oil supplies. Besides, for new projects, the evaluation of profitability is based on a prediction of the future price path of bitumen, and finally light or medium crude oil and this essay examines the relationship between the bitumen and light crude oil prices in the context of a simple error-correction economic-adjustment model.
On the other hand, the analysis shows bitumen prices to be significantly more volatile than light crude prices and also, the dominant effect of an oil price shock on bitumen prices is immediate and is amplified, both in absolute terms and percentage price changes. As a matter of fact, it is argued that the bitumen industry response to such market risks will likely be a realignment toward vertical integration via new downstream construction, mergers, or on a de facto basis by the establishment of alliances.nowadays, bitumen suppliers and also bitumen manufacturers are trying to produce a pure bitumen with lower price in international markets.
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