# Refining and reforming and Unconventional oil and gas

Energy flows from unconventional oil and gas to refining and reforming; their prices have moved together.

Source page: https://www.materialinsights.org/links/refining-and-reforming-and-unconventional-oil-and-gas/

[Refining and reforming](https://www.materialinsights.org/energy/e_refining/) (energy) and [Unconventional oil and gas](https://www.materialinsights.org/energy/e_oil_gas_unconv/) (energy): 2 relationships.

## How they are linked

### 1. Energy flow

*Physical flow · 4% of flow · Unconventional oil and gas → Refining and reforming*

Upgraders turn oil sands bitumen into synthetic crude.

- **4%** of Unconventional oil and gas's energy goes this way

### 2. Price link: customer

*Cost and price · Strong · Both ways*

Refiners buy shale crude and price their products off the same crude markets, so the refinery products index follows WTI, correlating at 0.77 for monthly changes and 0.94 for yearly changes. Swings in the margin between crude and products explain the remaining gap.

- **0.77** monthly change correlation
- **0.94** 12-month change correlation
- **0.97** fitted elasticity

Built from the site data on production routes, energy flows, industry value chains, input-output tables and prices.