Crude Oil

fiscalization

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 Processing of Hydrocarbons

Schematic of a typical production facility

Sweetening Dehydration Hydrocarbon Recovery Sales

Gas

Ex wells

Separation

water oil

Receiving Treating Sales

Tank Tank Tank

Treatment Disposal

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 Crude oil fiscalization
The tank farm (storage tank) is the last point, where the
separated crude oil is received.

Here the gas has been separated from liquid and the water
separated from oil.

It is at the tank farm that we carry out the final crude oil
gauging sampling analysis.

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 Crude oil fiscalization

Separation also takes place at the storage tank.

This separation is called fiscalization.

This is done to remove the material that has settled at the

bottom of the tank (basic sediment) and the water which
drains to the saver pit for oil recovery.

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 The Importance of Oil Measurement

Oil measurement is important to ensure that a company

receives the correct revenue for the oil sold.

Revenue is determined by the total volume of oil, oil

temperature and oil gravity.

Impurities in crude are commonly referred to as Basic

Sediment and Water or BS and W

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 Oil storage

• After crude oil has passed through the process equipment in

the field separation facility it is piped to one or more lease
tanks

• Before putting a lease tank into service it’s dimensions are

taken (called strapping) to compute the amount of oil for
each interval of height of the tank usually each ¼”)

• This is necessary to assure the buyer and the seller that the
tank contains an accurate volume of oil 6
 Oil storage

• A tank table showing the volume at each interval of height is

prepared and kept for reference when gauging the tank

• If the lease tank acquires a bulge, dent or leak, the inside

capacity of the tank has been changed and the tank will need
to be re-strapped

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Tank strapping

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 LEASE TANKS
Lease tanks are usually constructed of bolted or welded steel
and can range in size from 100 to 20,000 bbls.

Most common are 1000 bbl tanks

There are several distinguishing features on a lease tank, these

include:

• Stairs leading up to the top of the tank

• On the top there is a hatch that allows the gauger to look

inside the tank, collect samples and test the temperature
of the oil
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 LEASE TANKS

There are several distinguishing features on a lease tank, these

include:

• A vent or relief line connected to a small dome or cap on

the tank top used for venting gas pressure to the
atmosphere

• A fill line for production entering the tank

• An overflow line for emergencies when the tank has been

over-filled

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 OIL VOLUME CHANGES

Crude oil is bought and sold on a volume basis with the 42

gallon barrel as the standard unit of measurement

Crude oil expands and contracts with temperature, a quantity of

oil at 60 oF will occupy more volume at 80 oF and less volume at
40 oF. This difference can mean considerable loss of revenue

The percentage of impurities will also have an effect on the

volume of oil, a 42 gallon barrel of oil with 5% BS&W contains
less than 40 gallons of oil

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 Safety
• When entering any facility where H2S is present or expected,
activate H2S monitor and ensure level is acceptable (<10ppm)
before proceeding.

• Isolate tank and ensure there is no incoming fluid into the

tank.

• Ground your body to the stair railing or tank shell before

reaching the top in order to prevent static electrical discharge
in a hazardous area.

• Stand to the side of the hatch or upwind when opening to

permit wind to blow gas away from face.
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 GAUGERS
Responsibilities of gaugers include:

• Gauging lease tanks before and after a run to determine

the volume of a shipment

• Determining the temperature at the time of a run

• Collecting samples of oil for testing

• Testing the samples for A.P.I. gravity and BS&W content

• Maintaining appropriate records

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 Required equipment
Necessary equipment and supplies needed to gauge a tank:

• Gauger’s tape or gauge line

• Thief or sample catcher

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 Required equipment
Necessary equipment and supplies needed to gauge a tank:

• Thermometer

• Hydrometer to measure oil gravity

• Heated centrifuge for spinning

samples to settle impurities

• Centrifuge tube

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Required equipment

Heated centrifuge

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 Required equipment
Sample after being spun in the centrifuge

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 Required equipment
Necessary equipment and supplies needed to gauge a tank:

• Water-finding paste

• Solvent for cleaning

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 CRUDE OIL GAUGING
There are two method of crude oil gauging:
• The innage method

• The outage method.

The innage method:

It is done by lowering a
steel tape with plumb bob
attached into the liquid
until the plumb bob
touches the datum plate at
the bottom of the tank.
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 The innage method

The tape is withdrawn and

the tape reading at C is read
off.

This is read where the oil

mark is seen on the tape.

The tape is withdrawn

further and the tape
reading at B is read off.

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 The innage method

This is read where the free

water mark is seen on the
tape.

The brown water finding

paste changes colour to
pink at this point due to the
presence of water.

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 The innage method

The height of free water

is the tape reading at B.

The height of oil in the

tank is the distance BC,
which is the oil mark
minus the water mark.

The tank tables is used

to calculate the volume
of oil in the tank using
the height of the oil, in
feet. 22
 CRUDE OIL GAUGING

Example:

A sales tank is dipped using the innage method. The oil mark on
the tape is read off, giving a value of 65 feet 3 ¼ inches. The
water mark is read off, giving a value of 3 feet 6 ¾ inches.

Calculate:

1. The height of oil in the tank

2. The volume of oil in the tank is the calibration factor in

the tank is 62.45 barrels per foot.
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 CRUDE OIL GAUGING

Example:

1. The height of oil in the tank = oil mark - water mark

= 65 feet 3 ¼ in. - 3 feet 6 ¾ in.
= 61 ft 8 ½ “ = 61.708 ft

2. The volume of oil = 61.708 x 62.45

= 3,853.66 bbls

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 CRUDE OIL GAUGING

The innage method could lead to errors if there is sand fill at the
bottom of the tank.

The outage method:

The tape is lowered to a point within

the water zone but above the
bottom of the tank to a Point A

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 CRUDE OIL GAUGING

The tape is read at the tip of the hatch which has a previously
established height from the bottom of the tank (Reference
Height).

The reference height, OD, minus

the reading of the tape at the tip of
the hatch, AD, gives the height of
the plum bob above the bottom of
the tank, OA

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 CRUDE OIL GAUGING

The height of the water in the tank

is the tape reading at B (AB) plus
the height of the plum bob above
the bottom of the tank, OA

The height of the oil in the tank is

the tape reading at C (AC) minus
the tape reading at B (AB)

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 The outage method
Example:

A sales tank is dipped using the outage method. The

reading on the tape at the hatch cover is 88 ft 6 inches.
The oil mark on the tape is 65 feet 3 ¼ inches. The water
mark on the tape is 2 feet 1 ¼ inches.
Given the reference height of the tank is 90 feet,
calculate:

1. The height of water in the tank

2. The height of oil in the tank
3. The volume of oil in the tank is the calibration
factor in the tank is 73.25 barrels per foot.
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 CRUDE OIL GAUGING

The height of the plum bob above the bottom of the tank,
OA = The reference height, OD, minus the tape reading at
the hatch, AD

= 90 ft – 88 ft 6 in = 1 ft 6 in

1. The height of the water in the tank = Water mark (Tape

reading at B) plus the height of the plum bob above the
bottom of the tank, OA

= water mark + 1 ft 6 in

= 2 ft 1 ¼ in + 1 ft 6 in = 3 ft 7 ¼ in 29
 CRUDE OIL GAUGING

2. The height of the oil in the tank = the tape reading at C

(AC) minus the tape reading at B (AB)

= oil mark – water mark

= 65 feet 3 ¼ in - 2 feet 1 ¼ inches.

= 63 ft 2 in.

3. The volume of oil in the tank = 63 ft 2 in. x 73.25

= 63.167 x 73.25

= 4,626.98 bbls
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 General information

Gauging a tank and testing the oil is done to determine the

volume of oil, oil temperature, A.P.I. gravity and BS&W
content.

It is usually done at the time of transfer or sale or anytime the

lease operator deems necessary.

Before gauging, open the tank hatch and observe the oil
inside, if it is boiling (bubbling with foam on the surface) the
tank may have just been filled, circulated or rolled.

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 General information

These conditions stir up the tank bottom sediments with clean

oil raising the BS&W content.

The tank should not be gauged because accurate

measurements cannot be taken.

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 General information

Oil level in a lease tank is measured everyday to determine

the quantity of produced oil.

A lease tank is gauged before and after each transfer run.

The first gauge is commonly referred to as opening or top
gauge and the second gauge as closing or bottom gauge.

The difference between these two measurements is the

volume of oil transferred.

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