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Oil and Gas Industry ✓Crude oil and natural gas will migrate toward the

surface
Oil and natural gas are major industries in the energy
market and play an influential role in the global Oil and Gas Companies
economy as the world's primary fuel sources. The
Energy companies, nationally owned and privately
processes and systems involved in producing and
owned, are some of the biggest companies that have
distributing oil and gas are highly complex, capital-
every existed in the world. Many of them are well
intensive, and require state-of-the-art technology.
known, Exxon (U.S.), Chevron (U.S.), Saudi Aramco
The oil and gas industry is one of the largest sectors in (Saudi Arabia), Gazprom (Russia), China National
the world in terms of dollar value, generating an Petroleum Corporation (China), Equinor (formerly
estimated $3.3 trillion in revenue annually. Oil is crucial Statoil of Norway), TOTAL (France), and ENI (Italy).
to the global economic framework, especially for its Additionally, companies that use oil and natural gas, like
largest producers: the United States, Saudi Arabia, autos, electric providers, and airlines are also among the
Russia, Canada, and China most well-known and largest companies.

What are Hydrocarbons? The oil and gas industry is frequently divided into
three segments: upstream, midstream and
 Primary constituents of crude oil and natural
downstream. While each of these areas has a number
gas.
of independent companies, major companies in oil and
 Organic molecules composed solely of hydrogen
gas are often considered integrated, meaning their
and carbon atoms
businesses consist of a mix of upstream, midstream and
downstream activities. Companies can be private,
Origin of Hydrocarbons: public, or state-owned, which impacts the amount of
information available.
The origin of hydrocarbons can be traced back to the
decayed remains of plants and animals that were
embedded in sedimentary rocks, such as sandstone,
limestone, and shale. These sedimentary rocks
themselves formed from deposits that settled in ancient
oceans and other water bodies. Over time, with the
influence of specific temperatures and pressures deep
within the Earth's crust, this organic material underwent
transformations, eventually forming oil and gas.

Upstream
Petroleum, Crude Oil & Natural Gas
Upstream businesses consist of companies involved in
Petroleum: Encompasses both crude oil and natural gas. the exploration and production of oil and gas. These are
Mixtures of hydrocarbons with diverse uses and the firms that search the world for reservoirs of the raw
economic values. materials and then drill to extract that material. These
Crude Oil: Hydrocarbon mixtures that remain liquid at companies are often known as "E&P" for "exploration
normal atmospheric conditions. and production.“

Natural Gas: Gaseous hydrocarbons at normal The upstream segment is characterized by high risks,
atmospheric conditions. Primarily composed of high investment capital, extended duration as it takes
methane (CH₄). time to locate and drill, as well as being technologically
intensive. Virtually all cash flow and income statement
Today’s oil is yesterday’s plankton line items of E&P companies are directly related to oil
and gas production
✓Small marine and lake organisms live in surface waters
✓They die, fall to the bottom and get buried into an The upstream sector includes:
organic rich sedimentary layer
• Exploration – the searching for potential onshore or
✓ If geologic processes heat and squeeze these rocks offshore oil and gas reservoirs, and the drilling of
sufficiently, they will create crude oil and natural gas exploratory wells
(hydrocarbons) from the fossils
• Production and maintenance of wells and facilities to
recover and bring the crude oil and/or raw natural gas
to the surface plant and to process the produced Downstream businesses are the refineries. These are
hydrocarbons the companies responsible for removing impurities and
converting the oil and gas to products for the general
public, such as gasoline, jet fuel, heating oil, and
asphalt.

Downstream companies manage the refining and


marketing of oil and gas. There is lower market
concentration than the upstream segment. Downstream
companies benefit from profit margins where they are
able to sell their refined products for more than the cost
of acquiring the crude resources

PRODUCTION OF OIL AND GAS

ONSHORE

• Wells are located close together on land, covering


areas from half an acre for thick oil up to 80 acres for
natural gas.

• They're connected by steel tubes that transport oil


and gas to a processing facility.

• Unlike offshore rigs, onshore operations can quickly


adjust, turning rigs on or off based on market demands.

OFFSHORE

• Uses a single platform, either stationary (bottom-


supported) or mobile (floating with anchors).

• Costs more than onshore drilling, with stationary rigs


being pricier than mobile ones.

• Most processing facilities are near the coast, close to


these rigs

Midstream

Midstream businesses are those that are focused on


transportation. They are the ones responsible for
moving the extracted raw materials to refineries to
process the oil and gas. Midstream companies are
characterized by shipping, trucking, pipelines, and
storing raw materials. The midstream segment is also
marked by high regulation, particularly on pipeline
transmission, and low capital risk. The segment is also
naturally dependent on the success of upstream firms

Product Transfer Metering Classifications

1. Fiscal Metering:
• For tax, royalty, and revenue.
• High regulatory oversight.
• Top-tier accuracy & regular calibration.

2. Custody Transfer Metering:


Downstream • Measurement at ownership change.
• Strict standards for financial transactions.
• High accuracy & agreed-upon calibration. monotonously. However, as the load or demand has
increased practically one requirement is consistent. That
3. Allocation Metering: is, we must generate the amount required by the load at
• Divides product among multiple parties. that very instant because this large amount cannot be
• Guidelines vary by stakeholder agreements. stored for delivering this high amount of demand.
• Essential accuracy with flexible calibration. Electricity cannot be mined from the ground like coal.
So, it is called a secondary source of energy, meaning
Product Transfer Metering Classifications
that it is derived from primary sources, including coal,
Acceptable Custody Transfer Metering Methods natural gas, nuclear fission reactions, sunlight, wind,
•Differential Pressure (DP) Flowmeters and hydropower.

•Turbine Flowmeters Presently the generating stations we employ mainly


over the world are following:
•Positive Displacement (PD) Flowmeters
• Natural Gas - Natural gas combustion alone, or as part
•Ultrasonic Flowmeters of a furnace/boiler system, propels turbines to create
energy.
•Coriolis Flowmeters
• Coal - Most power plants use coal-fired steam turbines
Product Movement Concerns: Quality and Quantity
to generate power, though a few converts coal to a gas
Note: In all stages during movement of product,
before using it in turbines.
VOLUME must be accurately measured, and QUALITY
must be maintained. • Petroleum - Petroleum can also be burned to produce
combustion gases or steam to power turbines.

PDF # 7 • Nuclear Power - With nuclear power, nuclear fission


produces the energy-generating steam necessary to spin
NAKAHIWALAY turbines and generate electricity.

• Hydropower - Hydropower from dams and other


setups power turbines via flowing water.
Electrical Power Systems

What is an Electric Power System? • Wind - Like giant pinwheels, turbines capture energy
from the wind for conversion into electricity.
An electric power system or electric grid is known as a
large network of power generating plants which • Biomass - Derived from plant and animal waste,
connected to the consumer loads. materials are burned directly and used as other fuels to
power turbines or internal combustion generators.
As, it is well known that “Energy cannot be created nor
be destroyed but can only be converted from one form • Solar - Energy from the sun is captured in photovoltaic
of energy to another form of energy”. Electrical energy solar cells, heating fluids to produce steam and drive
is a form of energy where we transfer this energy in the turbines.
form of flow of electron. So, electrical energy is
obtained by converting various other forms of energy. • Geothermal - Heat from within the earth is harnessed
Historically, we have done it from chemical energy using to for heating water into steam to power turbines
cells or batteries.
Structure of Power System

The power system is a network which consists of


generation, distribution and transmission system. It
uses the form of energy (like coal and diesel) and
converts it into electrical energy. The power system
includes the devices connected to the system like the
synchronous generator, motor, transformer, circuit
breaker, conductor, etc.

The power plant, transformer, transmission line,


substations, distribution line, and distribution
Electricity transformer are the six main components of the power
system. The power plant generates the power which is
Electrical energy has grown immensely over two
step-up or step-down through the transformer for
centuries because the flexibility it provides for its use.
The variety of use has led its demand to increase
transmission. Step-Down Transformers:

Step-down transformers are engineered to decrease


voltage levels by having fewer turns in the secondary
coil compared to the primary coil. This leads to a lower
induced voltage in the secondary coil, but an increase in
current. Step-down transformers find applications in
distribution networks, providing a safe and usable
voltage for homes and businesses. The transformer
Power Generation equation remains applicable, ensuring a balance
between voltage and current in the electrical system.
In generating station, the fuel (coal, water, nuclear
energy, etc.) is converted into electrical energy. The Transmission Systems
electrical power is generated in the range of 11kV to Power from generation plants is carried first through
25kV, which is step-up for long distance transmission. transmission systems, which consist of transmission
The generator and the transformer are the main lines that carry electric power at various voltage levels.
components of the generating station.
• Transmission Substation
The generator converts the mechanical energy into
electrical energy. The mechanical energy comes from The transmission substation carries the overhead lines
the burning of coal, gas and nuclear fuel, gas turbines, which transfer the generated electrical energy from
or occasionally the internal combustion engine. generation to the distribution substations. It only
supplies the large bulk of power to bulk power
The transformer transfers the power with very high substations or very big consumers.
efficiency from one level to another. The power transfer
from the secondary is approximately equal to the The transmission lines mainly perform the two functions
primary except for losses in the transformer. The step- 1. It transports the energy from generating stations to
up transformer will reduce losses in the line which bulk receiving stations.
makes the transmission of power over long distances. 2. It interconnects the two or more generating stations.
The neighboring substations are also interconnected
through the transmission lines.

The transmission voltage is operating at more than 66kv


and is standardized at 69kv, 115KV, 138KV, 161KV,
230KV, 345KV, 500KV, and 765KV, line-to-line. The
transmission line above 230KV is usually referred to as
extra high voltage (EHV)

• Sub-transmission Substation

The portion of the transmission system that connects


the high voltage substations through the step-down
transformer to the distribution substations is called the
sub-transmission system.

The sub-transmission voltage level ranges from 90 to


138KV. The sub-transmission system directly serves
some large industries. The capacitor and reactor are
located in the substations for maintaining the
transmission line voltage.
Step-Up Transformers:
The operation of the sub-transmission system is similar
Step-up transformers are designed to increase voltage to that of a distribution system. It differ from a
levels by having more turns in the secondary coil distribution system in the following manner.
compared to the primary coil. This results in a higher
induced voltage in the secondary coil, reducing current 1. A sub-transmission system has a higher voltage level
according to the transformer equation. These than a distribution system.
transformers are used in power stations for long- 2. It supplies only bigger loads.
distance transmission, minimizing energy loss as heat in
the transmission lines.
3. It supplies only a few substations as compared to a fermentation, whereas many new drug substances are
distribution system which supplies some loads. produced by organic synthesis. Historically, most drug
substances were derived from natural sources such as
plants, animals, fungi and other organisms. Natural
medicines are pharmacologically diverse and difficult to
produce commercially due to their complex chemistry
and limited potency.

Distribution System

The component of an electrical power system


connecting all the consumers in an area to the bulk
power sources is called a distribution system. The bulk
power stations are connected to the generating
substations by transmission lines. They feed some
substations which are usually situated at convenient Fermentation
points near the load centers.
Fermentation is a biochemical process employing
The substations distribute the power to the domestic, selected micro-organisms and microbiological
commercial and relatively small consumers. The technologies to produce a chemical product. Batch
consumers require large blocks of power which are fermentation processes involve three basic steps:
usually supplied at sub-transmission or even inoculum and seed preparation, fermentation, and
transmission system. product recovery or isolation (Theodore and McGuinn
1992). A schematic diagram of a fermentation process is
MODULE 9 given in figure 79.3 . Inoculum preparation begins with a
Pharmaceutical Industry spore sample from a microbial strain. The strain is
selectively cultured, purified and grown using a battery
The Pharmaceutical Industry The pharmaceutical
of microbiological techniques to produce the desired
industry is defined as the discovery, development, and
product. The spores of the microbial strain are activated
manufacture of drugs and medications. It’s widespread,
with water and nutrients in warm conditions. Cells from
including research, chemicals, and the regulation and
the culture are grown through a series of agar plates,
involvement of government agencies. However, the
test tubes and flasks under controlled environmental
characteristics of the pharmaceutical industry differ by
conditions to create a dense suspension.
region.

The pharmaceutical industry is an important component


of health care systems throughout the world; it is
comprised of many public and private organizations that
discover, develop, manufacture and market medicines
for human and animal health (Gennaro 1990).

The pharmaceutical industry is based primarily upon


the scientific research and development (R&D) of
medicines that prevent or treat diseases and disorders.

Manufacturing Process in the Pharmaceutical Industry Chemical Synthesis


Basic production of bulk drug substances may employ Chemical synthesis processes use organic and inorganic
three major types of processes: fermentation, organic chemicals in batch operations to produce drug
chemical synthesis, and biological and natural substances with unique physical and pharmacological
extraction (Theodore and McGuinn 1992). These properties. Typically, a series of chemical reactions are
manufacturing operations may be discrete batch, performed in multi-purpose reactors and the products
continuous or a combination of these processes. are isolated by extraction, crystallization and filtration
Antibiotics, steroids and vitamins are produced by (Kroschwitz 1992). The finished products are usually
dried, milled and blended. Organic synthesis plants, creates not only new products but whole new product
process equipment and utilities are comparable in the categories
pharmaceutical and fine chemical industries. A
Food industries can be divided into following sections:
schematic diagram of an organic synthesis process is
✓Consumer food industry (confectionaries, cocoa
given in figure 79.4 . products, bakery products, soft drinks etc.)
Biological and Natural Extraction
✓Grain processing
Large volumes of natural materials, such as plant and
✓Marine products
animal matter, may be processed to extract substances
which are pharmacologically active (Gennaro 1990; ✓Dairy products
Swarbick and Boylan 1996). In each step of the process,
✓Poultry and meat products
the volumes of materials are reduced by a series of
batch processes, until the final drug product is obtained. ✓Fruit and vegetable processing
Typically, processes are performed in campaigns lasting
✓Fats and oils
a few weeks, until the desired quantity of finished
product is obtained. Solvents are used to remove Emphasis of food industries
insoluble fats and oils, thereby extracting the finished
Food industries emphasize on four different operations
drug substance. The pH (acidity) of the extraction
namely food storage, food processing, food transport
solution and waste products can be adjusted by and food preservation.
neutralizing them with strong acids and bases. Metal
compounds frequently serve as precipitating agents, 1. Food storage
and phenol compounds as disinfectants. Food storage includes improved storage of food such as
refrigeration cycles, refrigerants, and better insulation.
Pulp and Paper Industry Food industries process the raw materials as soon as
Print nalang PDF- hirap mag copy paste they are recovered. Sometimes due to unavoidable
circumstances such as early arrivals, non-availability,
Food and Beverage Industry
market price considerations which change according to
The Food and Beverage Industry includes all the time, the raw materials have to stored before
companies involved in transforming raw agricultural processing. The storing area should be well ventilated,
goods into consumer food products. The overall industry shaded, should use water baths, and if necessary, cold
supply chain includes food processing, packaging, and storage must be used.
distribution. It does not cover raw food production,
2. Food Processing
which falls into the closely related agriculture industry.
Food processing involves conversion of raw plant and
This industry includes fresh food, packaged food, and
animal tissues into edible ingredients and separation of
beverages (both alcoholic and non-alcoholic). From food
inedible and hazardous components, extraction of
sold at the grocery store to cooked meals served at
concentration of nutrients, flavors, colors and other
restaurants, institutions, and events, this industry serves
useful components and removal of water.
a huge variety of retail outlets.
Types of food processing:
Examples of Food and Beverage Processing
(a) Refining and Milling:
• Turning fresh milk into anything from dehydrated
power to a fine cheese. ▪ Sugar obtained from sugar cane is converted to
final sugar by refining process.
• Processing whole plants like carrots into diced or cut
packaged goods. ▪ Milling is the process of converting grain into
powder (flour) by mechanical means.
• Transforming grain into flour and then a variety of
baked goods. ▪ In milling operation, grain is cleaned and crushed
between two steel rolls
• Butchering pig, cows, chickens, etc. (A single plant, for
example, can process 1000’s of cattle in a single day). (b) Canning:
▪ Fresh food like fruits, vegetables, meat, fish
• Adding chemical components like preservatives to
etc. are preserved for long time storage by heat
enhance shelf life and reduce spoilage. Nutrient
treatment and sealing into air-tight containers.
fortification is another prominent example.
▪ These cans may be made by tin, untinned
• Using proteins to manufacture the new wave of steel, which is often plastic-lined, aluminum or
synthetic meats: a great example of how this industry glass.
▪ Heat treatment is given to the container by ▪ Irradiation does not denaturate protein, does
placing them in a steam pressure vessel at a not alter taste and does not leave any
temperature of 121˚C depending on container radioactive residue in the food.
size and nature of food. ▪ Loss of vitamins is less as compared to
▪ The toxin produced by microorganism is canning, freezing or drying.
clostridium botulinum. Therefore, processing (h) Packaging:
must be done to destroy this organism. ▪ The objective of packaging is to store and
(c) Concentration: transport safely without deterioration of food.
▪ Containers are sealed so that no outside
▪ Foodstuff which naturally contains high percentage
contaminant can enter and cause food spoilage.
of water is concentrated before preservation.
▪ Cardboard boxes, cans, glass bottles,
▪ Milk is evaporated from 8.6% solid content to 45% polythene, plastic coated paper, finely woven
solid content. cloth are commonly used for packing.

▪ Fruit juices are also concentrated before Food regulatory policies in the Philippines
marketing. ▪ Usually the volume is reduced to one- Food Safety Act of 2013
third of the original volume. Food Safety Act of 2013. Republic Act (RA) No.
▪ For food concentration three processes are 10611, also known as the “Food Safety Act of
available- evaporation with evaporators, reverse 2013” defines food as any substance or product
osmosis and freeze concentration. whether processed, partially processed, or
unprocessed that is intended for human
(d) Freezing: consumption. The law primarily aims to
▪ Freezing does not kill the microorganisms strengthen the food safe. This law shall aim for a
which cause spoilage, but freezing inactivate high level of food safety, protection of human
microorganisms. life and health in the production and
▪ Nutrients are not destroyed by freezing. consumption of food. It shall also aim for the
▪ Inactivation of enzymes by heat protection of consumer interests through fair
treatment(blanching) is done before freezing to practices in the food trade regulatory system in
prevent unwanted changes. the country.
▪ To improve the quality of final product, the
amount of water in food is reduced before In line with the implementation of the Food
freezing. Safety Act of 2013, the Department of
(e) Pasteurization and Sterilization: Agriculture and the Department of Health
▪ Heat treatment inactivates the microorganisms issued Joint Administrative Order 2015-007
but changes the taste of food and its specifying the responsibilities of food safety
appearance. ▪ The high temperature short regulatory agencies (FSRAs) and food business
time(HTST) method exposes the milk to 73˚C for operators in the development and
not less than 16sec, followed by rapid cooling. enforcement of food safety standards and
This process is called pasteurization. regulations in the country. The said order
▪ Pasteurization kills pathogenic (disease mandates the Food and Drug Administration
causing) microorganisms, eliminates food borne (FDA) to ensure food safety through the
disease and inactive enzymes. development and issuance of authorizations
▪ Milk can be stored for several months at room that cover establishments and facilities engaged
temperature. in the production and distribution of food
(f) Fermentation: products. All food establishments are mandated
▪ All organisms are not detrimental. to comply with the regulatory requirements
▪ Fermentation produces carbon dioxide but no related, but not limited, to the regulations
putrid odor. mentioned in Table 1.
▪ Fermentation is decomposition of
carbohydrate.
▪ These industries produce vinegar, wine, beer
and other alcoholic beverages. It is also used in
making bread, cheese, salting of food etc.
(g) Irradiation:
▪ Irradiation is required to kill microorganism
present in food.
▪ Irradiation is used to preserve proteinous food
such as meat, fish, fresh fruits, vegetables, flour,
spices etc.

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