IntroductiontoRefining

Agenda
SafetyTopic
Disclaimer
Introduction
Refining101
UnitOverviews
TrendsinRefining
MarketOverview
Questions
Whereveryouarebeall
there.
Disclaimer
Thispresentationisbeingprovidedforgeneralinformationalpurposes
onlyandisnottobetakenwithanyimplicationsforsaleorwarrantyby
eitherthepresenterorWoodGroupMustang.Allinformationwithinhas
beenobtainedfromavarietyofsources,includingtheopinionand
experienceofthepresenter.Informationcontainedinthispresentation
maynotbecomplete,accurateorconsistent,andshouldnotberelied
uponassuch.
NeitherthepresenternorWoodGroupMustangretainanyliability,
financialorotherwise,foruseofinformationpresentedhereinbeyond
generalandinformaleducationpurposes.
ChrisDoss
7yearswithWoodGroupMustang
B.S.ChemE,UniversityofMissouriRolla
Downstream ProcessEngineeringgroup
Upstreamprocessing,refining,petrochem,specialtychemicals
WoodGroupMustang
Upstream,ProcessPlantsandIndustrial,Pipeline,andAutomation
Houstonheadquarters,16officesworldwide
Over6500Mustangersworldwide
Ranked#12byENR2011forRefinerywork(basedonRevenue)
Ranked#5inHoustonsTopWorkplaces(HoustonChronicle)
Introduction
SegmentsinOil&GasIndustry
EXPLORATION
EXTRACTION
PRODUCTION
TRANSPORTATION
REFINING
STORAGE
OPERATIONS
MAINTENANCE
REVAMPS
MARKETING
WHOLESALE/RETAIL
Refining101
Raworunprocessed("crude")oilis
notusefulintheformitcomesinout
oftheground.
Offshoreandonshore(upstream)
productionfacilitiesremove
contaminantsandcleanup the
crudetomeetminimalpipeline
specifications.
Pipelinesbringtheoiltorefineries
whereoilisprocessedintouseful
products.
Crude Oil
Refinery
Propane
Butane
Natural Gas
Refinery Fuel Gas
Gasoline
Solvents
Kerosene
Diesel
Heating Oil
Lube Oil
Greases
Asphalt
Pitch
Coke
Chemical Precursors
(Plastics, Rubbers, etc.)
Byproducts
Refining101
Refining101
Refineriesattempttomaximizeprofitbymakingthecombinationof
productsfromacombinationoffeedsattheproductionratewhichgivesthe
highestreturn.
RawMaterial:
Crudeorcrudemixtureplusselectedchemicals $105/bbl
Products:
Variousgasolinegrades $3.99/galx42gal/bbl= $168/bbl
Variouskerosene/jetfuelgrades
VariousdieselgradesIntermediatefractions
Coke
Chemicalsorchemicalsfeedstocks
IntermediateFractions
$168 $105=$63/bblprofit
Whatstheproblem?
Refining101
Productslatewhichmaximizesprofitdependson:
Season
Gasolinedemand,productionandpriceallgoupinSummer
Diesel(heatingoil)demand,productionandpriceallgoupinWinter
Geography
Locallyavailablecrudes
Localproductdemands(asphalt,coke,jet,kero,lube,etc.)
And,obviously,Crude(feed)Type
RawMaterialPrice
ContaminantContent
Sweet/Sour
Lubeoils onlyfromcertaincrudes
Coke howmuchbottomofthebarrelresidue
WhatisCrudeOil?
BlackGold
.TexasTea
CrudeOilProducts:WhatsforSale?
~15%
CrudeOilGrades
RemovalofContaminants
CrudeOilContaminants
Mud,water,salt (desalters)
Sulfur/Nitrogen (hydrotreaters)
Metals (incidentalandonpurposelaydownoncatalyst)
Paraffin,Olefin,Naphthene,andAromatics
Muchofthesteelinarefineryisdevotedtoremovalofthe
contaminants
Desalters
Hydrotreaters
SulfurRecoveryUnits(SRU)
BenzeneReductionUnits
AmineUnits
GuardBeds
Generally,heavycrudeisnotasvaluableaslightercrude
Goal:Makemoregasoline/dieselviaconversion
Conversion(reaction)vs.Separation
Anexampleofrefinerymotorfuelproduction:
%gasoline/dieselwithoutconversion ~50%
%gasoline/dieselwithconversion ~90%
Conversionvs.Separation
RefineryBlockFlowDiagram
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 lowsulfur,lowolefins,lowaromatics
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
UnitsinaRefinery
CrudeUnit
VacuumUnit
Hydrotreating/crackingUnit
FluidCatalyticCrackerUnit
DelayedCokerUnit
Crude/VacuumUnitPFD
26
CrudeUnit
VacuumUnit
Hydrotreater/Hydrocracker
Hydrotreater/HydrcrackerPFD
32
FluidCatalyticCrackerUnit FCCU
BigSteamPlume
34
DelayedCokerPicture
TrendsinRefineryUpgrades/Revamps
Environmental
BenzeneReduction EPAMSATIImandate
AirQualityProjects SOxandNOxinFCCandFiredHeaterfluegas
Carboncapture
EPATierIIIforfurthersulfurreductioningasoline
Reduceproductsulfurcontent
GrassrootsHydrotreatingunits
Revampexistingunitswithmorecatalystvolume
SulfurRecoveryUnit(SRU)capacity
Hydrogengenerationcapacityorbuyitoverthefence
Crudequalityandcapacityupgrades
Grassrootsconversionunits cokers/hydrocrackers
Metallurgicalupgrades
Pumpupgradesforhigherviscosity/rate
Desalterupgrades
Efficiencyupgrades
RefineryCapacityandUtilization
RefiningCapacityvs.Refineries
ProjectTradeoffs
Doitfast.
Doitright.
Doitcheap.
.picktwo.
Adopt,augment,bypass,patch,
debottleneck,repurpose,skip,
rerate,livewith,maintain,fixlater,
reschedule,workaround...
U.S.Refineries
( )
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%
TopRefinersWorldwide
RefineryThroughputinBarrels/Day
42
TopDomesticRefiners
RefineryThroughputinBarrels/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
TheChangingGlobalRefiningLandscape
PercentageofWorldwidecapacity
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%
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
VariousWoodGroupMustangprojects
Questions?
www.mustangeng.com
chris.doss@mustangeng.com