Oil & Gas Fundamentals Class - PRES - Day - 2

R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
| 1
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
| 2
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
| 3
Exercise:
Calculate the permeability of a core plug
from the following test: Flow rate =
2.10
-6
[m
3
s
-1
], Inlet pressure = 5 [bar],
Outlet pressure = 1 [bar], Length of core
= 0.1 [m], Area = 1.10
-4
[m2], Viscosity
= 0.002 [Pa.s]
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
| 4
A cylindrical core having a radius 2.54 10-2 [m]
and length of 0.3 [m], was flooded with
brine at a steady rate of 1.10-6 [m3s-1], the
differential pressure across the core was 10
[bar]. Calculate the absolute permeability of
the core. Assume brine viscosity 0.001
[Pa.s].
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Pictures of some components
Drilling: Phases and Components
| 5
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Pictures of some components
| 6
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
| 7
Hoisting system includes the
draw works
Rotary system- includes the
rotary table or the top drive
Circulation system- includes mud
pumps, suction/storage tanks
and mud shakers
Circulation system- includes mud
pumps, suction/storage tanks
and mud shakers,
Power system- usually consists
of diesel generators
Blow out prevention & safety
system- consists of hydraulically
operated rams
All the operations related to the well delivery process are formed on
a drilling rig
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Screens
Mud pump
| 8
Focus on the drilling mud cycle
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Then, steel
casing is run and
cemented on the
outside to keep
the hole from
collapsing
Next, a smaller bit
is run inside the
first casing.
This bit drills out
the bottom of the
casing, and drills
new hole
First, a large drill
bit is used to
drill a short
section of a hole
Drilling processes
Drilling: How to drill a hole
| 9
Then, this new
hole is also
cased off and
cemented
Again, a
smaller hole is
drilled out

A smaller casing
is run to keep
the hole from
falling in
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Differences between onshore and offshore drilling
| 10
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Inland Barge
For drilling in water
depths from 8 to 30 ft
Jackup Rig
depths from 15 ft to +/-
350 ft
Drill Ship
depths from 100 to
5000+ ft
Semi-Submersible Rig
depths from 100 to
5000+ ft
Samples of offshore drilling rigs
| 11
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Drilling a well not only
provides an opportunity to
produce oil or gas, it is also
an opportunity to collect
information about the
formations being penetrated

How do geologists tell if the reservoir has
oil or gas?

They run the logs across the zone. Logs
are tools run on electric cable (wireline)
which record the physical properties in
the rock such as resistivity, porosity,
density, radioactivity, and pore pressure
Well logging
| 12
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Sand
Shale
Siltstone
Shale
Siltstone
Dolomite
Shale
Heres an example of how a log looks like
| 13
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
| 14
Geologists look at logs to decide whether or not to complete a well or
abandon it
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
| 15
Gamma
Radiation
200

500

3000
Electrical
Resistivity
Porosity
Looks
like
good
sand
quality
good
resistivity
poor resistivity
good porosity
poor
porosity
good porosity
poor
resistivity
poor porosity
good porosity
good porosity
poor porosity
and they choose where to complete the well
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Electric wireline cable
Wireline gun carrying
explosives
Steel casing
Cement
Hydrocarbon bearing
formation
Explosives detonated
causing perforations in the
casing- that will allow
hydrocarbons to flow from
the formation, into the
well bore and to the
surface
Explosive charges
used by the oil
industry must have
a very high level of
heat resistance
After the well is drilled, perforation is carried out against the hydrocarbon
bearing zones to enable production to begin
| 16
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
If the well looks good on
the logs, it is possible to
run a final string of casing
across the production
zone, and cement it in
place
Then, we run perforating
guns in the hole and
perforate (shoot holes )
in the casing across the
productive zone

| 17
Finally, a production tubing is run into the hole
Tubing
Packer
Production tubing is
run, with a packer to
isolate the produced
zone from the casing
above
Finally, the well is
produced into a pipeline,
which takes it to
production facilities on
surface
| 17
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Well Testing
Well testing involves producing a sample
of the hydrocarbons from the reservoir
and analysing it to determine the
following:
- Grade (quality)
- Formation pressure
- Flow rates
There are three main methods of well
testing:
- Wireline formation interval testing
- Surface testing
- Down hole drill stem testing (DST)
After testing and completing the well, it is
hooked up to the production network
and brought on-line
| 18
Well testing is the final conclusive step that confirms the presence and
grade of the hydrocarbons
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Well completion and production
Production
| 19
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Well head
Production
| 20
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Underwater well head
Production
| 21
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Production
| 22
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
A schematic representation of a typical crude oil processing facility
| 23
The production facility processes the hydrocarbon fluids and separates
oil, gas and water
Production
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
A schematic representation of a typical crude oil processing facility
| 24
oil, gas and water
Production
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
| 25
oil, gas and water
Production
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Upstream Downstream Midstream
| 26
The oil and gas industry comprises of three parts
Introduction
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
There is a significant distance between places where major quantity of oil
and gas is extracted and places where it is consumed

As a result, for several decades now, enormous quantities of oil and gas
have been transported all over the world by sea and on land

Whether oil is transported by maritime or terrestrial routes, safety, security
and environmental issues should always be the main focus
Transportation
For several decades, oil and gas have been transported all over the world
| 27
Transportation: Introduction
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Map showing
principal
movements of oil
worldwide in
2003 (millions of
tones)
The main routes for the transport of crude oil are from the Middle East towards Europe and the United States via
the Cape of Good Hope to the south of Africa, or via the Suez canal, depending on the size of the vessel
Other routes exist in the direction of the Far East (Japan, China, South Korea) via the Malacca straight (between
Sumatra and Malaysia)
Oil routes
| 28
Transportation: Oil and Gas
Production facilities
Refinery facilities
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Maritime transport as it was in the 19th century and the present day has seen a tremendous improvement in
capacity and also safety
In the 19
th
century transportation of oil by sea was about few hundreds of barrels of oil, but technology permit us
to transport up to 2 million barrels in a single tanker
Modern tankers are now equipped with navigational aids (ACAS), electronic control systems, automated power
plants, satellite communications and radar equipments that allow for maximum security and minimum crew
From Pennsylvania Historical & Museum Commission,
Drake Well Museum Collection, Titusville, PA (1864)
The transportation of oil by sea
Oil tanker in the Bosporus, Richard Seaman (2004)
| 29
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Overland transport, although not as
important as maritime, still remains
very common in particular vast
countries such as Russia. It is also
necessary to delivery oil destined for
transport by ship, to a port.
Moreover, in the industrialized
countries, there are major pipeline
networks transporting crude to
refineries situated inland and also
handling the finished products coming
out of the refineries and destined for
major centers of consumption.
Oil pipelines are large diameter tubes
that can transport enormous quantities
of oil, up to several tens of millions of
tons per year. The oil circulates by
means of pressure maintained by
pumping stations located every 60 to
100 km. The oil travels in the pipelines
at speeds of around 2m/sec (7km/h)
The transportation of oil by land
| 30
G17BK railway internal heating heavy oil tank wagon
Finnish oil pipeline
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Map showing
principal
movements of
gas worldwide in
2003 (millions of
cubic meters)
Overall, the problems of transport and storage of gas are the same as for oil: producer and consumer countries
have a significant distance from each other. Unlike oil, the gas is in a gaseous state at normal pressures and
temperatures. This means that, for the same quantity of energy, it occupies a volume 600 times greater than that
of oil.
The most usual method of transportation is therefore by gas pipelines both underwater and overland
Gas routes
| 31
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
There are underwater gas pipelines, linking Norwegian gas fields to European terminals or linking North
Africa to Sicily and of course, overland gas pipelines like those that bring Russian gas to the European
Union
These gas pipelines are not visible: for safety reasons and security they are buried underground
West African Gas Pipeline runs offshore for about 620 km from Badagry in Lagos, Nigeria to Aboadzi in
Sekondi, Ghana with laterals to Cotonou, Lome and Tema
Underwater pipelines
| 32
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Transportation of gas by land has transformed from the use of bamboos by Chinese to the modern steel
pipelines. This also brought increase in capacity and safety.
The amount of gas transported by Russian gas pipeline to Europe is about 120 bcm per year, supplying 80% of
Europe demand (2009)
Overland pipelines
| 33
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
The compressed gas circulates at high speed in a gas pipeline, with the aid of compression plants positioned at
regular intervals along the network
In certain cases the construction of gas pipelines is technically impossible or too expensive, for example to bring
Nigerian gas to Europe, or to take gas from Qatar to Japan. To resolve this problem, a method of maritime
transport based on the liquefaction of the gas (LNG, liquefied natural gas) has been introduced
LNG tanker
| 34
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
| 35
Quiz:
1.How are the different properties of hydrocarbon
compounds determined?
2.How does geologist tell if the reservoir has hydrocarbon?
List four methods to achieving that.
3.What is the essence of doing well testing?
4.How many type of wells do we have? Name them
5.What are the factors that rate of flow depends on?
6.List the rig systems and give one example of the
component of each system.
7.Explain extensively why it is necessary to treat oil and
gas?
8.Define four physical properties of hydrocarbon
9.Explain gravity-magnetic interpretation and seismic
prospecting.
10.Why is drilling mud/fluids important.
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
A distinction must be made between the owner of the ship on the one hand and the owner of the petroleum
cargo on the other. The two are rarely the same
Owner of transportation is not the only one responsible for the safety conditions. The country where the ship is
registered must also verify safety conditions.
However, certain countries have low taxes for vessels registration which decreases the cost of it, on the other
hand they do not ensure serious technical controls. These countries are consequently accused of making
available flags of convenience
The individual or company who provides the vessel (who is often also the owner) has the responsibility for its
safety and security, as well as for its certification and regularly inspection
The same person or company providing the vessel has the responsibility for the crew ensuring its competence
and motivation
How is maritime transport organized?
| 36
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Agenda Day 2
1 Drilling
Phases and components
How to drill a hole

| 37
2 Production
Introduction
Oil and Gas
Challenges
Storage
Spill
4 Refining
3 Transportation
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
The Sirius Star is the biggest tanker ever to be hijacked, with a cargo of 2m barrels - a quarter of
Saudi Arabia's daily output - worth more than $100m
Pirating
Transportation: Challenges
| 38
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Icebergs
Transportation: Challenges
| 39
Icebergs can be found in the Arctic
Ocean, the Baltic Sea and other
ice-laden seas
Tankers are designed with double
hulls. Finland is noted for having
this kind of tankers, e.g. Wartsila
Shipbuilding Division in Helsinki
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Agenda Day 2
1 Drilling
How to drill a hole

| 40
2 Production
Introduction
Oil and Gas
Challenges
Storage
Spill
4 Refining
3 Transportation
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Floating Production Storage and Offloading (FPSO)
Transportation: Storage
| 41
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
The crude oil that arrives at its destination is not always immediately treated in a refinery. In addition, some
countries have realized for a long time the strategic importance of oil. They are committed to holding stocks of
petroleum products (crude and finished products) equivalent to 3 months of import quantities
Depending on the country, the strategic stocks are managed by state or private organizations (or both)
Petroleum products are stocked in tanks of varying size that can often be buried underground
The main concern of the managers of these centers is safety and security. Fire safety certainly; but also prevention
of the risk of pollution of land areas and water tables in the case of a leak. There are regular inspections of the
condition of the tanks and their resistance to corrosion
Oil storage
| 42
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Salt cavern
Gas consumption is not
regular throughout the year.
In France, for example,
seasonal variations go from
1 in summer to 8 in winter.
Storage of gas is therefore
essential to enable matching
of supply and demand
But the gas can be stored in
natural underground
reservoirs, as if one created
an artificial gas deposit.
Suitable geological sites
must possess good reservoir
and cap rock conditions and
be located at a sufficiently
shallow depth (around
500m), so that injection of
the gas is not too expensive
in energy terms.
Gas storage
| 43
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
LNG storage tanks
Gas storage
| 44
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Very serious situation that can lead to losses of revenue and environmental pollution. The major causes
of oil spill are bad weather, collusions with other tankers or icebergs.
Oil spill
Transportation: Spill
| 45
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Skimming
Absorbing
Control of spill
| 46
Vacuum cleaner, that absorbs the oil
which floats from the top of the water. It
works only in calm waters.
Oil is absorbed by an absorbent material
or it can be done manually by using
buckets or shovels
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Burning
Boom
Control of spill
| 47
The boom is used to prevent the oil spill for
spreading further to the shore and it is used
when the waves are not more than 3 feet and
the wind speed not more than 20 knots
Burning will remove about 50% to 90% of oil
spill, but it can only be used when it has not
formed mousse (emulsion of crude and
water)
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Hazards of oil spill workers
Face masks and protective clothing are
important items that clean up oil workers
may need to be safe from hazards
| 48
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Agenda Day 2
1 Drilling
How to drill a hole

| 49
2 Production
Introduction
Oil and Gas
Challenges
Storage
Spill
4 Refining
3 Transportation
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Upstream Downstream Midstream
| 50
The oil and gas industry comprises of three parts
Refining
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
REFINING
Initial material
Highly variable crude oil is named crude thanks to its extreme
variability
End product
End products should meet particular requirements according to their
purposes e.g. gasoline to power cars or fuel oil to heat homes ad
feedstocks for chemicals, plastics and by-products
| 51
In order to be used, crude oils need to be refined
Refining
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Sour Refineries
Refineries that can handle sulphurous or non-sulphurous crude
1
2
Sour crude contains 2,5% or more
sulphur, whereas sweet crude
contains 0,5% or less sulphur
| 52
There are two types of refineries
Refining
Sweet Refineries
Refineries that can handle only non-sulphurous crude
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Market conditions Market analysis Refineries activity
Refineries adjust their
activity to market
conditions
Refineries are generally
not designed for a specific
crude oil. Thanks to this
flexibility, they can focus
on the most profitable
feedstock at any given
time
Market conditions are
variable.
E.g., a momentary
tightness in the local
gasoline market, resulting
in a price rise for
gasoline. It would
temporarily increase the
value of light (high
gasoline yields) crudes
compare to the value of
the heavier crudes.
To select the most
profitable feedstock at
any given time, process
engineers develop
computer models of the
specific processing
capabilities at the refinery.
Using detailed crude
analyses and current
prices, sequential
computer simulates the
refinerys yield and
resulting revenues for
each crude
| 53
Market conditions influence refineries activity
Refining
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
For industrieal
purposes fuel must
have known burning
characteristics so that
it can be matched with
an appropriate burner
system
Volatility and viscosity
are the important
characteristics in
designing burner
systems
Smaller molecules in a
hydrocarbon increase
volatility and reduce
viscosity and color.
Conversely, larger
molecules reduce
volatility and increase
viscosity and color
Crude oil can not be used as a fuel itself because it contains too broad
spectrum of molecular size
Splitting crude into several
fractions
Several fractions are obtained, each has a concentration of a particular
range of molecular sizes.
E.g.: one of the fractions might be light gases known as butanes and a
heavier fractions known as kerosene
| 54
Taking fractions out of crude is the first step in a refinery
Refining
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
The highest valued
petroleum products
are the white
products, which
include gasoline,
diesel, jet fuel and
heating oil
Altering molecules
Production of high-valued petroleum products is maximised following
the conversion of the lesser-valued gases and the heavier bottom of
the barrel materials to white products
In the initial feedstock, several types of molecules are present
Altering molecules includes following steps
POLYMERIZATION: combination of the small gas molecules into larger and middle of the
barrel, molecules
CRACKING: break up of the large, bottom of the barrel, molecules into smaller ones
ISOMERIZATION: alter the arrangement of atoms in a molecule without adding or
removing any the atoms
| 55
Altering molecules is the process that allows the conversion of the lesser-
valued gases into the highest valued petroleum products
Refining
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
ATMOSPHERIC
DISTILLATION
It is the initial process in a refinery. Its fractionating
tower a large diameter vertical vessel with
multiple internal contractor trays the largest in
the refinery. The crude is heated, vaporizing most
of it, then it is injected into the base of the tower.
Vapours rising through ports in the trays come into
contact with condensed liquids working downward
through the column. This interchange continually
vaporizes some liquid and condenses some gas,
establishing an equilibrium throughout the column
with heavier material toward the base and lighter
material toward the top. Product cuts are
continuously removed from the tower through side
draws spaced along its vertical length
| 56
Here are some examples of processes used in refineries, in order to drive
the light and heavy ends further toward the middle of the barrel (1/4)
Refining
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
VACUUM FLASHING
Feedstock for this process is the residue from
distillation. The purpose is to extract additional
lighter material. Residue is heated and vacuum
pulled to induce boiling. Flashing extends the
distillation process to the bottom of the barrel.
If done with heat alone, the high temperature
required would induce cracking into lesser
valued gases. By utilizing vacuum, lower
temperatures are adequate and cracking is
avoided.
| 57
Refining
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
THERMAL CRACKING
It involves the residue from the flasher. The process aims to split large molecules
into gasoline-range molecules. Heat varies from 493 C to 549 C. A full range of
products including coke is yielded by the process.
| 58
Refining
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
CATALYTIC
CRACKING
It converts heavy gas oils from distillation and flasher to gasoline. It requires heat plus
catalyst (beads or powder)
GAS PLANT
It separates gas streams from distillation and other processes for particular uses. It consists
of distillation under pressure and absorption. Methane, ethane, propane, butane and
isobutene are yielded. The products are all saturated (having a full complement of
hydrogen atoms). Olefin gases from crackers are separated similarly, but in a different gas
plant
ALKYLATION
Feedstock is constituted by olefins (propylene and butylenes) from cracker plus isobutene
from gas plant. The purpose of the process is to create heavier, gasoline range molecules
from lighter ends. It consists of polymerization by pressure and cooling in presence of a
catalyst (sulphuric or hydrofluoric acid). Alkylate and gases are the final product
HYDRO-
CRACKING
It is a catalytic cracking process assisted by the presence of an elevated partial pressure of
hydrogen gas. The function of hydrogen is the purification of the hydrocarbon stream from
sulphur and nitrogen hetero-atoms. Hydro-cracking is normally facilitated by a bi-functional
catalyst that is capable of rearranging and breaking hydrocarbon chains as well as adding
hydrogen to aromatics and olefins to produce naphthenes and alkenes
Refining
| 59
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
1
2
The dehydrogenation of naphthenes to convert them
into aromatics as exemplified in the conversion
methylcyclohexane (a naphthene) to toluene (an
aromatic)
The isomerization of normal paraffins to isoparaffins
as exemplified in the conversion of normal octane to
2,5-Dimethylhexane (an isoparaffin)
| 60
Focus on the reaction chemistry: the four major catalytic reforming
reactions (1/2)
Refining
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
3
4
The dehydrogenation and aromatization of paraffins
to aromatics (commonly called dehydrocyclization)
as exemplified in the conversion of normal heptane
to toluene
The hydro cracking of paraffin into smaller
molecules as exemplified by the cracking of normal
heptane into isopentane and ethane
| 61
Focus on the reaction chemistry: the four major catalytic reforming
reactions (2/2)
Refining
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Blending in petroleum refining is the physical mixture of a number of different liquid hydrocarbons
to produce a finished product with certain desired characteristics
Products can be blended in-line through a manifold system, or batch blended in tanks and vessels
In-line blending of gasoline, distillates, jet fuel, and kerosene is accomplished by injecting
proportionate amounts of each component into the main stream where turbulence promotes
thorough mixing. Additives including octane enhancers, metal deactivators, anti-oxidants, anti-
knock agents, gum and rust inhibitors, detergents, etc. are added during and/or after blending to
provide specific properties not inherent in hydrocarbons
Blending
The blending operation
has a major impact on
managing the refinery:
it determines what
feedstocks and run
volumes are needed so
each of the various
processes will yield the
required volumes and
specifications of
products
| 62
Blending operations are the final step of the process that takes place
within a refinery
Refining
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
Product End market %final demand
LPG Cooking fuel 5-10%
Naphtha Petrochemical feedstock 5-15%
Gasoline Passenger vehicles 20-30%
Diesel Passenger vehicles,
commercial vehicles,
emergency power generators
20-30%
Kerosene, heating oil Aviation, domestic and
commercial heating, cooking
10-15%
Lubricants Passenger and commercial
vehicles
0-5%
Heavy fuel oil Bunker fuel, power generation 10-15%
Asphalt Road surfacing 0-5%
Petcoke Power generation, industrial
fuel
0-5%
L
i
g
h
t

p
r
o
d
u
c
t
s

H
e
a
v
y

p
r
o
d
u
c
t
s

| 63
End markets for finished oil products (1/2)
Refining
R 0
G 114
B 166
R 217
G 234
B 242
R 234
G 234
B 234
The gaseous products can be for instance reprocessed into high-quality gasoline components, sold as
heating or transportation fuels, upgraded into higher value petrochemical products, or simply burned as a
refinery fuel source
Propane and butane are both termed liquefied petroleum gas (LPG), and can also be produced from
reforming and cracking. Once distilled, LPGs are liquefied and either sold in bottles for cooking fuel, used
for gasoline blending or as ethylene steam cracker feedstock to manufacture base chemicals

Although only about 10% of the refined products of crude oil are used as chemical feedstock, it is still the
most significant source of organic chemicals

Heavier products such as naphtha (essentially untreated gasoline) are primary feedstock for the
petrochemical industry in Europe and parts of Asia. In the US and Middle East petrochemical units use
natural gas as a feedstock
The output of finished products at the lightest end of the distillation range
can vary greatly, depending on the sophistication of the refinery

| 64
End markets for finished oil products (2/2)
Refining

Oil & Gas Fundamentals Class - PRES - Day - 2

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Oil & Gas Fundamentals Class - PRES - Day - 2

Uploaded by

Copyright:

Available Formats

R 0

You might also like