Oil Refineries Ltd
Encyclopedia
Oil Refineries Ltd. located in Haifa Bay, is Israel
's largest Oil refinery. Using its state-of-the-art industrial facilities, ORL is capable of refining approximately 9.8 million tons of crude oil per year providing a variety of products used in industrial operation, transportation, private consumption, agriculture and infrastructure.
Its origins date to the British Mandate for Palestine when Consolidated Refineries Limited (CRL), a joint venture of Shell
and the Anglo-American Oil Company (now Esso
), started constructing the complex which sat at the end of the British-built Mosul-Haifa oil pipeline
which stretched from the oil fields near Kirkuk
in then British-controlled Iraq
. Construction of the refinery started in 1938 and was carried out by the M. W. Kellogg Co. with assistance from Solel Boneh
, and was completed in 1944. During World War II
, the complex supplied refined products to British and American forces operating in the Mediterranean and North African theaters, and was bombed 21 times during the early stage of the war, though the damage it suffered was quickly repaired. Due to concerns about the Arab League Boycott
, the British Government sold CRL to the State of Israel in 1958 which then changed its name to Oil Refineries Ltd. Since then the complex has undergone significant expansion and upgrades. In the past, ORL also owned the Ashdod Oil Refinery
in southern Israel and therefore as a company, it held a monopoly
over oil refining in the country. This changed in 2006, when the Ashdod facilities were sold to the Paz Oil Company, while at the same time ORL became a public company and its shares were listed on the Tel Aviv Stock Exchange
.
With the refining business currently representing 90% of the Company's total activities, ORL produces refined products with a high added value by using complex refinery facilities and at 7.4 on the Nelson complexity index
, among the highest in the Eastern Mediterranean region. The Company has a maximum crude oil refining capacity of approximately 24,800 tons per day (180000 oilbbl/d). Over 75% of the Company's produce goes to local consumption, while the balance is exported, primarily to the Mediterranean basin.
The company is also active in the area of Polymers and Aromatics through its holdings in Carmel Olefins Ltd. and wholly owned Gadiv Petrochemical Industries Ltd. Oil Refineries is traded on the Tel Aviv Stock Exchange under the ticker ORL.
The Company also provides power and heat services (electricity and steam) to industrial customers in Haifa Bay, as well as infrastructure services (storage, pumping, and truck and rail loading of fuel and chemical products).
Oil Refineries Ltd.'s vast petrochemical plants have released significant amounts of pollution to the environment around Haifa Bay. However, starting in March 2011, after being connected to the new national natural gas
distribution grid, the plants will switch to using natural gas (rather than mostly fuel oil
) as their main power source, thus greatly reducing the amount of air pollution emanating from the complex. The switch to natural gas is also expected to save the company over US$180 million per year in fuel costs.
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...
's largest Oil refinery. Using its state-of-the-art industrial facilities, ORL is capable of refining approximately 9.8 million tons of crude oil per year providing a variety of products used in industrial operation, transportation, private consumption, agriculture and infrastructure.
Its origins date to the British Mandate for Palestine when Consolidated Refineries Limited (CRL), a joint venture of Shell
Royal Dutch Shell
Royal Dutch Shell plc , commonly known as Shell, is a global oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the fifth-largest company in the world according to a composite measure by Forbes magazine and one of the six...
and the Anglo-American Oil Company (now Esso
Esso
Esso is an international trade name for ExxonMobil and its related companies. Pronounced , it is derived from the initials of the pre-1911 Standard Oil, and as such became the focus of much litigation and regulatory restriction in the United States. In 1972, it was largely replaced in the U.S. by...
), started constructing the complex which sat at the end of the British-built Mosul-Haifa oil pipeline
Mosul-Haifa oil pipeline
Mosul-Haifa oil pipeline led crude oil from the oil fields in Kirkuk, located in north Iraq, through Jordan to Haifa, and was active in the years 1935-1948. The oil line's length was about 942 km, and it took about 10 days to move oil from start to finish...
which stretched from the oil fields near Kirkuk
Kirkuk
Kirkuk is a city in Iraq and the capital of Kirkuk Governorate.It is located in the Iraqi governorate of Kirkuk, north of the capital, Baghdad...
in then British-controlled Iraq
Iraq
Iraq ; officially the Republic of Iraq is a country in Western Asia spanning most of the northwestern end of the Zagros mountain range, the eastern part of the Syrian Desert and the northern part of the Arabian Desert....
. Construction of the refinery started in 1938 and was carried out by the M. W. Kellogg Co. with assistance from Solel Boneh
Solel Boneh
Solel Boneh is the oldest, and one of the largest, construction and civil engineering companies in Israel.-History:Solel Boneh was founded in 1921 during the first conference of the General Histadrut, under the name of Batz , an acronym of Binyan veAvodot Tziburiot . Its first project was to pave...
, and was completed in 1944. During World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
, the complex supplied refined products to British and American forces operating in the Mediterranean and North African theaters, and was bombed 21 times during the early stage of the war, though the damage it suffered was quickly repaired. Due to concerns about the Arab League Boycott
Arab League boycott of Israel
The Arab League boycott of Israel is a systematic effort by Arab League member states to isolate Israel economically to prevent Arab states and discourage non-Arabs from providing support to Israel and adding to Israel's economic and military strength...
, the British Government sold CRL to the State of Israel in 1958 which then changed its name to Oil Refineries Ltd. Since then the complex has undergone significant expansion and upgrades. In the past, ORL also owned the Ashdod Oil Refinery
Ashdod Oil Refineries
Ashdod Oil Refinery is second largest Oil Refinery in Israel, after Haifa Oil Refineries Ltd, located in coastal city of Ashdod. It was once part of governmental company Oil Refineries Ltd. After privatization of the company and solution to break the monopoly in Oil Refinery field, Ashdod oil...
in southern Israel and therefore as a company, it held a monopoly
Monopoly
A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity...
over oil refining in the country. This changed in 2006, when the Ashdod facilities were sold to the Paz Oil Company, while at the same time ORL became a public company and its shares were listed on the Tel Aviv Stock Exchange
Tel Aviv Stock Exchange
The Tel Aviv Stock Exchange in Tel Aviv is Israel's only stock exchange.The TASE is the only public market for trading securities in Israel. It plays a major role in the Israeli economy....
.
With the refining business currently representing 90% of the Company's total activities, ORL produces refined products with a high added value by using complex refinery facilities and at 7.4 on the Nelson complexity index
Nelson complexity index
The Nelson complexity index was developed by Wilbur L. Nelson in a series of articles in Oil & Gas Journal in 1960-61 . In 1976, he elaborated on the concept in another series of articles, again in Oil & Gas Journal...
, among the highest in the Eastern Mediterranean region. The Company has a maximum crude oil refining capacity of approximately 24,800 tons per day (180000 oilbbl/d). Over 75% of the Company's produce goes to local consumption, while the balance is exported, primarily to the Mediterranean basin.
The company is also active in the area of Polymers and Aromatics through its holdings in Carmel Olefins Ltd. and wholly owned Gadiv Petrochemical Industries Ltd. Oil Refineries is traded on the Tel Aviv Stock Exchange under the ticker ORL.
The Company also provides power and heat services (electricity and steam) to industrial customers in Haifa Bay, as well as infrastructure services (storage, pumping, and truck and rail loading of fuel and chemical products).
Oil Refineries Ltd.'s vast petrochemical plants have released significant amounts of pollution to the environment around Haifa Bay. However, starting in March 2011, after being connected to the new national natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
distribution grid, the plants will switch to using natural gas (rather than mostly fuel oil
Fuel oil
Fuel oil is a fraction obtained from petroleum distillation, either as a distillate or a residue. Broadly speaking, fuel oil is any liquid petroleum product that is burned in a furnace or boiler for the generation of heat or used in an engine for the generation of power, except oils having a flash...
) as their main power source, thus greatly reducing the amount of air pollution emanating from the complex. The switch to natural gas is also expected to save the company over US$180 million per year in fuel costs.