What does it mean to say the gasoline is fungible?
Gasoline is “fungible” meaning that if it meets specifications, such as 87 octane regular, then it is interchangeable with any other 87 octane gasoline.
What does it mean that oil is fungible?
Oil is a fungible commodity, meaning oil of different grades and origins is largely interchangeable. This doesn’t mean all oil is the same on a chemical level; different grades of oil have different sulfur content and viscosities, which affect refinement needs and extraction efforts, respectively.
Is ethanol refined from crude oil?
Much of the ethanol produced in the world is actually a petroleum product. It is easily made by the hydrolysis of ethylene, a major petrochemical. Two million tons of petroleum-derived ethanol is produced annually.
What is renewable ethanol?
Renewable ethanol’ is produced from agricultural raw materials, such as cereals and sugar beet, as well as from waste and residues such as straw; ‘synthetic ethanol’ is produced as a derivative from ethylene production using fossil-based raw materials.
Is gas a fungible commodity?
Turns out that gas is fungible, i.e., gas is gas, whether it comes from Conoco or BP. There aren’t special BP or Conoco gas pipes. All imported and domestic oil that enters the U.S. market flows into and out of the same distribution network. The same pipes, storage tanks, and transport network handles it all.
What does fungible mean in finance?
Fungibility is the ability of a good or asset to be interchanged with other individual goods or assets of the same type. Fungible assets simplify the exchange and trade processes, as fungibility implies equal value between the assets.
What is an example of a fungible?
Commodities, common shares, options, and dollar bills are examples of fungible goods. Assets like diamonds, land, or baseball cards are not fungible because each unit has unique qualities that add or subtract value.
What does fungible mean for dummies?
1 : being something (such as money or a commodity) of such a nature that one part or quantity may be replaced by another equal part or quantity in paying a debt or settling an account Oil, wheat, and lumber are fungible commodities. fungible goods. 2 : capable of mutual substitution : interchangeable …
How is ethanol naturally produced?
Ethanol is naturally produced by the fermentation of sugars by yeasts or via petrochemical processes such as ethylene hydration. It has medical applications as an antiseptic and disinfectant. It is used as a chemical solvent and in the synthesis of organic compounds. Ethanol is a fuel source.
Is natural gas fungible?
Natural gas is, in essence, a balancing force between the goals of addressing climate change and satisfying the energy needs of emerging countries. As this plays out, natural gas has evolved beyond a regional product to a global and fungible commodity similar to oil.
What is a fungible product?
Key Takeaways Fungible goods are items that are interchangeable because they are identical to each other for practical purposes. Commodities, common shares, options, and dollar bills are examples of fungible goods.
What is microbial production of ethanol?
Microbial production of one of the organic feed stocks from plant substances such as molasses is presently used for ethanol production. This alcohol was produced by fermentation in the early days but for many years by chemical means through the catalytic hydration of ethylene.
What is ethanol?
The fermentation of sugar into ethanol is one of the earliest biotechnologies employed by humans. Ethanol has historically been identified variously as spirit of wine or ardent spirits, and as aqua vitae or aqua vita. The intoxicating effects of its consumption have been known since ancient times.
What is the fermentation yield of ethanol from sugar?
But in practice, the fermentation yield of ethanol from sugar is about 46% or one hundred grams of pure glucose will yield 48.4 grams of ethanol, 46.6 g of CO 2, 3.3 grams of glycerol and 1.2 g of yeast. The biosynthesis of ethanol is given in Fig. 20.6.
Is it possible to produce cellulosic fuel ethanol?
Despite the technical potential for cellulosic ethanol production, economical production has been difficult to achieve and only relatively small amounts of cellulosic fuel ethanol have been produced United States. In the 1850s, ethanol was a major lighting fuel. During the Civil War, a liquor tax was placed on ethanol to raise money for the war.