Economics

Heavy crude oils provide an interesting situation for the economics of petroleum development. The Resources of Heavy oil in the world are more than twice of those conventional light crude oil. On one hand, due to increased refining costs and high sulfur content, heavy crudes are often priced at a discount to lighter ones. The increased viscosity and density also makes production more difficult (see: reservoir engineering). On the other hand, large quantities of heavy crudes have been discovered in the Americas including Canada, Venezuela and Northern California. The relatively shallow depth of heavy oil fields(often less than 3000 feet) contributes to lower drilling costs.