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 Introduction
Who is this guy?
• 25 years experience in refinery & supply
business
• Responsible for 1 million barrels per day of
crude purchases for BP system East of
Rockies
• Working to improve his “cyclic” golf game
 Overview
• Simple model for crude oil selection
• The refiner’s schizophrenia
• Canadian crudes vs. alternatives
• Opportunities & challenges
 Simple Model for Crude Oil Selection

• Availability

• Deliverability

• Profitability
 Availability
• How much of this crude exists?

• Internal demand for this crude oil?

• Terms of purchase, spot or term contract?

 Deliverability
• Can you get the crude to your refinery?
(i.e. viscosity, pour point, pipeline capacity)

• Ratable deliveries?
(i.e. crude tankage available?)

• How long is the transit time?

Transit Times of Various Crudes
Sweet Crudes Days
MSW (Edmonton to Griffith) 26
WTI (Cushing to Griffith) 10
Transit Times of Various Crudes
Sour/Heavy Crudes Days
LSB/Midale (Cromer to Griffith) 14
WTS (Cushing to Griffith) 10
Arab Heavy (St. James to Manhattan) 10
LLB/LLK (Hardisty to Griffith) 22-24
Cold Lake (Hardisty to Griffith) 24
Wabasca (Edmonton to Griffith) 35
 Diluent Options for Bitumen’s
• Butane Very Bad
• Sour synthetics Very Bad
• Caroline condensate Bad
• “Sweet” condensates Good
• Upgraded Light Better
 Profitability
• Value of yield structure & cut point
properties of the crude?
• Crude “fits” refinery configuration?
• Can you sell the product slate produced
from this crude oil?
– (qualifier: for more than the crude oil cost and
all other costs)
“The Crude Wedge”

Availability Deliverability

Profitability
 The Refiner’s Schizophrenia
All refiners are alike, yet all refiners are different.

Alike – Produce similar products

Different – Refinery Configuration

Impact of Refinery Configuration
Yields of Crudes

H2S, Propane, Butanes

Light Ends
Light Naphtha Isom Feed
Heavy Naphtha Reformer Feed

Distillate Jet Fuels & Highway Diesel

Gas Oil FCU Feeds

Resid Coker Feeds, Asphalt.

Flux, Petroleum Coke

Barrel of Crude Oil

 A “Simple” Refinery
Light ends to fuel

C5/C6
Gasoline blendstocks
ISOM

Reformer Gasoline blendstocks

Jet - A
Crude Oil Pipe H.T. LS Diesel
Still

FCU Gasoline blendstocks

Distillate blendstocks

Coker Petroleum Coke

Asphalt
Canadian Upgraded Light vs. Cushing WTI
Crude Qualities Upgraded WTI
Light
Whole Crude

Gravity, API 33 – 34 39
Sulfur, wt% 0.2 0.4
Viscosity @122F, SSU 35 35

Naphtha N+A, vol% 53 - 58 55

Diesel, CI 42 - 43 50

FCU Feed:
Nitrogen, wt% .081 - .123 .112
Ca, wt% 9.7 - 13.5 10.0
Resid, Metals, Ni + Va 42 - 56 83
 Canadian Upgraded Light vs. Cushing WTI

Crude Dist Yields, Upgraded Light WTI

Vol%
C4 & Lighter 1.6 1.7
Lt. Virgin Naphtha 6.9 10.6
Reformer Feed 15.1 21.0
Jet-A Fuel 18.5 18.4

Furnace Oil Dist 13.0 9.0

FCU Feed 41.5 26.6

Reduced Crude 3.8 11.0

Total 100.3 100.3

Canadian Upgraded Light vs. MSW
Crude Qualities Upgraded MSW
Light
Whole Crude

Gravity, API 33 – 34 40
Sulfur, wt% 0.2 0.4
Viscosity @122F, SSU 35 35

Naphtha N+A, vol% 53 - 58 55

Diesel, CI 42 - 43 53

FCU Feed:
Nitrogen, wt% .081 - .123 .062
Ca, wt% 9.7 - 13.5 12.4
Resid, Metals, Ni + Va, ppm 42 - 56 50
 Canadian Upgraded Light vs. MSW
Crude Dist Yields, Upgraded Light MSW
Vol%
C4 & Lighter 1.6 3.5
Lt. Virgin Naphtha 6.9 9.3
Reformer Feed 15.1 19.3
Jet-A Fuel 18.5 18.5

Furnace Oil Dist 13.0 9.2

FCU Feed 41.5 29.9

Reduced Crude 3.8 10.7

Total 100.3 100.3

 Cold Lake vs. Arab Heavy
Crude Qualities Cold Lake Arab Heavy
w/Diluent
Whole Crude

Gravity, API 22 28
Sulfur, wt% 3.5 2.8
Viscosity @122F, SSU 292 70

Naphtha N+A, vol% 55 30

Diesel, CI 39 51

FCU Feed:
Nitrogen, wt% .119 .050
Ca, wt% 16.1 14.5
Resid, Metals, Ni + Va, ppm 520 240
 Cold Lake vs. Arab Heavy
Crude Dist Yields, Cold Lake Arab Heavy
Vol%
C4 & Lighter 0.8 1.9
Lt. Virgin Naphtha 13.2 6.5
Reformer Feed 10.1 12.3
Jet-A Fuel 8.1 13.9

Furnace Oil Dist 5.7 8.4

FCU Feed 28.3 29.3

Reduced Crude 34.2 28.0

Total 100.3 100.3

 Opportunities & Challenges
• Refiners’ investment to meet clean fuel
regulations – bitumen is high sulfur
material.
• Nitrogen content of bitumen blends.
• Existing hydrotreating & sulfur recovery
capacity of refineries.
• Metalurgical demands of “high” TAN
crudes.
 Summary

• Competition to displace Canadian Crudes

with alternatives
– Logistics
– Quality/Yields
– Price/Terms
– Relationships