- Petroleum Refineries: Location
- @raw material site: Disadvantages
- Refineries @ port locations
- Reliance Jamnagar Refinery: Location Factors
- Refineries @Market Location: Advantages
- Synthetic fibers
In the previous article, we saw the geographical factors responsible for the location of Copper smelting industry. Let’s move to the next topic:
- There are two stages: 1) production (drilling) 2) refining.
- For Petroleum refineries, the raw material sources were less decisive factors for industrial location. Because industries were already setup in coalfields and did not move away due to industrial inertia.
- Petroleum refining does not lead significant weightloss, unlike the aluminum/copper/sugarcane/timber processing.
- Virtually all the by-products can be used. Therefore, refineries can be set up
- near the raw material or
- near the market or
- at an intermediate break of the bulk location (ports/coastal locations)
Unrest/Instability as a location factor
Multinational companies do not feel confident to setup refineries inside the middle-east or South America because
- During Arab-Israeli war, OPEC members stopped supplying oil to countries that had supported Israel.
- There have been war/war-like situations due to Israel-Palestine conflicts, Iran-Iraq, Iraq-Kuwait. Such instability, destruction, aerial strikes=not good for business.
- In South America, there have been frequent (and violent) changes in the regimes.
Examples of Refineries @Raw Material Site
- Assam: Digboi, Guwahati and Bongaiaon
- Gujarat: Koyali
- Middle-east/West Asia is a large producer of crude oil but there is little domestic demand because region is not industrially developed.
- Therefore, many petrochemical complexes are located on the coast to facilitate export. Examples
|Saudi Arab||Ras Tanura|
- The development of large tankers and pipelines =bulk-transportation of petroleum possible.
- this provides favorable condition for locating refineries and petrochemical industries near the market and near the ports
Challenge: the latest vessels are so big in size, they cannot pass through Suez and other canals
|USA||refineries on East Coast of USA:|
|EUROPE||refinery clusters are found near port locationse.g. Rotterdam and Thames: making it easier to transport the final products via pipelines, river-barges and railroads|
|JAPAN||Since Japan depends on imported oil, the refineries are setup @ coastal industrial regions e.g Honshu island.|
At village Motikhavdi, Taluka – Lalpur, District – Jamnagar, Gujarat.
- You can use raw material (crude oil) supply from more than one oilfield of more than one country. So even if oil well is exhausted from country X, you can shift to country Y.
- After refining, the finished petroleum products can be supplied to interior areas pipeline connection and trucks/tankers.
Challenges: environmental activism/laws/regulations fears of explosion, terrorism. Hence becoming difficult to setup refineries near market location.
|CELLULOSIC FIBERS||TRUE SYNTHETICS|
|Near pulp mills||near petrochemical refineries|
Synthetic Fibre Industry: Location factor
- Although, with the progress in transport-cargo facilities, nowadays synthetic fiber industry is not always in close proximity with petroleum industry. Example in USA- while Petroleum refining business is concentrated in Southern parts, you can find synthetic fiber industry scattered throughout the country.
India- Synthetic fibre industry:
- In the late 60s, Dhirubhai Ambani started Reliance for textile manufacture @ Naroda near Ahmedabad, Gujarat.
- But since polyester is made from petrochemicals, so he entered in Petrochemical business. But petrochemical is derived from Petroleum refining, so he moved into Petroleum refining as well.
- Finally Jamnager refinery @Gujarat. Thus he achieved complete vertical integration in the supply chain from crude oil to synthetic fibers (even garments via “only vimal” brand).
- Now Jamnagar refinery=> intermediate raw materials to Reliance’s textile units @Dahej, Naroda, Vadodara in Gujarat.
- Similarly Oil discovery in Ankaleshwar-Sanand-Kalol led to growth of Synthetic textile industry in this region of Gujarat.
In the next article, we’ll look at the geographical factors responsible for the location of Natural Gas & Fertilizer industry.
visit Mrunal.org/geography for the Archive of all geography articles published so far.