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separated  at  the  well  site  if  natural  gas  pipelines  are  nearby  or
           flared as a waste. The produced water and other materials also are
           typically separated from the crude oil at the well site. Petroleum
           products  are  produced  from  the  processing  of  crude  oil  at
           petroleum refineries and the extraction of liquid hydrocarbons at
           natural gas processing plants. Petroleum is a broad category term
           that  includes  both  crude  oil  and  petroleum  products,  and  is
           sometimes  used  interchangeably  with  the  term  oil.  Crude  oil  is
           measured in barrels (one barrel equals 42 gallons).
                  About  85%  of  natural  gas  produced  from  conventional
           wells is methane, a compound comprised of one carbon atom and
           four hydrogen  atoms. Ethane, propane, and  butane  also occur in
           natural gas  and are often  separated and processed as  natural gas
           liquids. Natural gas exists as:
                  Associated gas in crude oil wells where natural gas exists
           separate  from  the  crude  oil  in  the  underground  formation  or  is
           dissolved in the crude;
                  Non-associated gas in dry gas wells that generally produce
           only natural gas that does not contain any hydrocarbon liquids;
                  Wet gas (a type of non-associated gas) in condensate wells
           where natural gas occurs along with natural gas liquid; and as coal
           bed methane in coal seams.
                  Oil - viscous liquid from dark brown to light yellow color,
           which  is  a  mixture  of  methane,  naphthenic  and  aromatic
           hydrocarbons,  resins  asphaltenes,  waxes  and  other  inorganic
           substances.
                  Natural gas - a mixture of methane series of hydrocarbons
           with  the  general  formula  C nH 2n  +2.  The  first  4  hydrocarbons
           (methane, ethane, propane and butane) at atmospheric pressure and
           standard temperature are in the gas state, and higher pentane (C5-
           C17) - in the liquid (hydrocarbon condensate), C18 - and more - in
           the solid state (paraffin).

                  Condensates
                  While the ethane, propane,  butane, and pentanes  must be
           removed  from  natural  gas,  this  does  not  mean  that  they  are  all
           waste products. In fact, associated hydrocarbons, known as 'natural


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