Basic of Refining

7/29/2019 Basic of Refining

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Introductionto

Refining


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Agenda

SafetyTopic

Disclaimer

Introduction

Refining101

UnitOverviews

Trendsin

Refining

MarketOverview

Questions


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Whereveryouarebeall

there.


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Disclaimer

Thispresentationisbeingprovidedforgeneralinformationalpurposes

onlyandisnottobetakenwithanyimplicationsforsaleorwarrantyby

either

the

presenter

or

Wood

Group

Mustang.

All

information

within

has

beenobtainedfromavarietyofsources,includingtheopinionand

experienceofthepresenter. Informationcontainedinthispresentation

maynotbecomplete,accurateorconsistent,andshouldnotberelied

uponassuch.

NeitherthepresenternorWoodGroupMustangretainanyliability,

financialorotherwise,foruseofinformationpresentedhereinbeyond

generalandinformaleducationpurposes.


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ChrisDoss

7yearswithWoodGroupMustang

B.S.ChemE,UniversityofMissouriRolla

Downstream ProcessEngineeringgroup

Upstreamprocessing,refining,petrochem,specialtychemicals

WoodGroup

Mustang

Upstream,ProcessPlantsandIndustrial,Pipeline,andAutomation

Houstonheadquarters,16officesworldwide

Over6500Mustangersworldwide

Ranked#12

by

ENR

2011

for

Refinery

work

(based

on

Revenue)

Ranked#5inHoustonsTopWorkplaces(HoustonChronicle)

Introduction


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SegmentsinOil&GasIndustry

EXPLORATION

EXTRACTION

PRODUCTION

TRANSPORTATION

REFINING

STORAGE OPERATIONS

MAINTENANCE

REVAMPS MARKETING

WHOLESALE/RETAIL


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Refining101

Raworunprocessed("crude")oilisnotusefulintheformitcomesinout

oftheground.

Offshoreandonshore(upstream)production

facilities

remove

contaminantsandcleanup the

crudetomeetminimalpipeline

specifications.

Pipelines

bring

the

oil

to

refineries

whereoilisprocessedintouseful

products.


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Crude OilRefinery

Propane

Butane

Natural Gas

Refinery Fuel GasGasoline

Solvents

Kerosene

Diesel

Heating Oil

Lube Oil

Greases

Asphalt

Pitch

Coke

Chemical Precursors

(Plastics, Rubbers, etc.)

Byproducts

Refining101


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Refining101

Refineriesattempttomaximizeprofitbymakingthecombinationofproductsfromacombinationoffeedsattheproductionratewhichgivesthe

highestreturn.

RawMaterial:

Crudeorcrudemixtureplusselectedchemicals $105/bbl

Products:

Variousgasolinegrades $3.99/gal x 42gal/bbl = $168/bbl

Variouskerosene/jetfuelgrades

VariousdieselgradesIntermediatefractions

Coke

Chemicalsorchemicalsfeedstocks

IntermediateFractions

$168 $105=$63/bblprofit

Whatstheproblem?


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Refining101

Productslatewhichmaximizesprofitdependson:

Season

Gasolinedemand,productionandpriceallgoupinSummer

Diesel(heatingoil)demand,productionandpriceallgoupinWinter

Geography

Locallyavailablecrudes

Localproduct

demands

(asphalt,

coke,

jet,

kero,

lube,

etc.)

And,obviously,Crude(feed)Type

RawMaterialPrice

ContaminantContent

Sweet/Sour

Lubeoils onlyfromcertaincrudes

Coke howmuchbottomofthebarrelresidue


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WhatisCrudeOil?

BlackGold

.TexasTea


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CrudeOilProducts:WhatsforSale?

~15%


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CrudeOilGrades


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RemovalofContaminants

CrudeOilContaminants Mud,water,salt (desalters)

Sulfur/Nitrogen (hydrotreaters)

Metals (incidental

and

on

purpose

laydown

on

catalyst)

Paraffin,Olefin,Naphthene,andAromatics

Muchofthesteelinarefineryisdevotedtoremovalofthe

contaminants Desalters

Hydrotreaters

SulfurRecoveryUnits(SRU)

BenzeneReduction

Units

AmineUnits

GuardBeds


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Generally,heavycrudeisnotasvaluableaslightercrude

Goal:Makemoregasoline/dieselviaconversion

Conversion(reaction)

vs.

Separation

Anexampleofrefinerymotorfuelproduction:

%gasoline/dieselwithoutconversion ~50%

%gasoline/dieselwithconversion ~90%

Conversionvs.Separation


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RefineryBlockFlowDiagram


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GasolinePool Octane

EnvironmentalSpecs Regional,Rural/Urban

Specs Octane VapPress

Olefins

Benzene

Aromatics

Sulfur

Blending

DieselPool OnRoad(ULSD)/OffRoad

Specs Cetane AutoIgniteProperty

FlashPoint

ColdProps Cloud/PourPoint

Blending StraightRun(SR)diesel moderatesulfur,noolefins

FCCLCO highsulfur,olefins,aromatics

Cokerdiesel highsulfur,olefins,aromatics,silicon

Hydrocrackerdiesel

low

sulfur,

low

olefins,

low

aromatics

GASOLINE BLENDING

Source % of pool

Alkylate 13

Coker Naphtha 1

Hydrocracked Naphtha 2

FCC Naphtha 36

Isomerate 6

LSR Naphtha 3

Butanes 5

Reformate 34

Total 100

GasolineandDieselPools


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UnitsinaRefinery

CrudeUnit

VacuumUnit

Hydrotreating/crackingUnit

FluidCatalyticCrackerUnit

DelayedCokerUnit


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Crude/VacuumUnitPFD


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26

CrudeUnit


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VacuumUnit


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Hydrotreater/Hydrocracker


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Hydrotreater/HydrcrackerPFD


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32

FluidCatalyticCrackerUnit FCCU

BigSteamPlume


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34

DelayedCokerPicture


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TrendsinRefineryUpgrades/Revamps Environmental

BenzeneReduction EPAMSATIImandate

AirQualityProjects SOxandNOxinFCCandFiredHeaterfluegas

Carboncapture

EPATierIIIforfurthersulfurreductioningasoline

Reduceproductsulfurcontent

GrassrootsHydrotreatingunits

Revampexistingunitswithmorecatalystvolume

SulfurRecovery

Unit

(SRU)

capacity

Hydrogengenerationcapacityorbuyitoverthefence

Crudequalityandcapacityupgrades

Grassrootsconversionunits cokers/hydrocrackers

Metallurgicalupgrades

Pumpupgradesforhigherviscosity/rate

Desalterupgrades

Efficiencyupgrades


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RefineryCapacityandUtilization


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RefiningCapacityvs.Refineries


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ProjectTradeoffs

Doitfast.

Doitright.

Doit

cheap.

.picktwo.

Adopt,augment,

bypass,

patch,

debottleneck,repurpose,skip,

rerate,livewith,maintain,fixlater,

reschedule,work

around...


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U.S.Refineries

Top Refiners Worldwide


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1 ExxonMobil 5,706,000 11%2 Royal Dutch Shell 5,181,000 10%

3 Sinopec 3,611,000 7%

4 BP PLC 3,474,000 7%

5 ConocoPhillips 2,927,000 6%

6 Valero Energy 2,834,000 5%

7 Petroleos de Venezuela SA 2,678,000 5%8 Total SA 2,688,000 5%

9 China National Petroleum Corp. 2,440,000 5%

10 Saudia Aramco 2,369,000 5%

11 Chevron Corp. 2,072,000 4%

12 Petroleo Brasileiro SA 1,997,000 4%

13 Petroleos Mexicanos 1,706,000 3%

14 National Iranian Oil Co. 1,451,000 3%15 OAO Lukoil 1,217,000 2%

16 OAO Yukos 1,182,000 2%

17 Nippon Oil 1,157,000 2%

18 Repsol YPF 1,105,000 2%

19 Kuwait National Petroleum 1,085,000 2%

20 Pertamina 993,000 2%

21 Marathon Oil Corp. 974,000 2%

22 Agip Petrolil SpA 906,000 2%

23 Sunoco Inc. 880,000 2%

24 SK Corp. 817,000 2%

25 Indian Oil Corp 777,000 1%

Total refining capacity of top 25 worldwide: 52,227,000 61%

Total world refining capacity in 658 refineries: 85,100,000 100%

TopRefinersWorldwideRefineryThroughputinBarrels/Day

Top Domestic Refiners


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42

TopDomesticRefinersRefineryThroughputinBarrels/Day

1 Valero Energy 15 2,323,160 13%

2 ConocoPhillips 13 2,222,200 13%

3 ExxonMobil 7 1,956,000 11%

4 BP PLC 6 1,475,150 9%

5 Royal Dutch Shell 9 1,084,550 6%

6 Marathon 7 974,000 6%

7 Chevron Corp. 5 909,000 5%

8 Sunoco Inc. 5 880,000 5%

9 Petroeos de Venezuel 4 849,400 5%10 Flint Hills (Koch) 3 773,775 4%

11 Motiva Enterprises 3 730,000 4%

12 Tesoro Corp. 6 558,000 3%

13 Saudi Aramco 3 372,500 2%14 Lyondell Chemical 1 282,600 2%

15 Total 1 231,452 1%

Top 15 Total 15,621,787 90%Total American (133 Refineries)

17,272,169

Th Ch i Gl b l R fi i L d


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TheChangingGlobalRefiningLandscapePercentageofWorldwidecapacity

2000 2007 2010

NorthAmerica 26.5% 24.4% 22.8%

South/CentralAmerica 7.8% 7.2% 7.3%

Europe&Eurasia 28.1% 27.6% 26.7%

MiddleEast 7.9% 8.3% 8.6%

Africa 3.2% 3.3% 3.6%

China 6.1% 8.7% 11.0%

India 2.7% 3.4% 4.0%

Japan 6.0% 5.3% 4.9%

OtherAsiaPacific/Australia 11.7% 11.8% 11.0%


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References

USEIA:www.eia.gov

BPEnergyOutlook2011:www.bp.com

Wikipedia:

en.wikipedia.org TheOilDrum:http://www.theoildrum.com/node/7641

OilandGasJournal:www.ogj.com

PetroleumRefiningfortheNonTechnicalPerson;WilliamLeffler

VariousWood

Group

Mustang

projects


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Questions?www.mustangeng.com

[email protected]

Documents

Basic of Refining