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.

Introduction
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)

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.

Refining101
Propane
Butane
Natural Gas
Refinery Fuel Gas
Gasoline
Solvents
Kerosene
Crude Oil

Refinery
Diesel

Chemical Precursors
(Plastics, Rubbers, etc.)
Heating Oil

Lube Oil
Greases
Asphalt
Pitch
Coke
Byproducts

Refining101

Refineriesattempttomaximizeprofitbymakingthecombinationof
productsfromacombinationoffeedsattheproductionratewhichgivesthe
highestreturn.
RawMaterial:
Crudeorcrudemixtureplusselectedchemicals

$105/bbl

Products:

Variousgasolinegrades
$3.99/galx42gal/bbl= $168/bbl
Variouskerosene/jetfuelgrades
$168 $105=$63/bblprofit
VariousdieselgradesIntermediatefractions
Whatstheproblem?
Coke
Chemicalsorchemicalsfeedstocks
IntermediateFractions

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

Conversionvs.Separation

Generally,heavycrudeisnotasvaluableaslightercrude
Goal:Makemoregasoline/dieselviaconversion

Conversion(reaction)vs.Separation
Anexampleofrefinerymotorfuelproduction:
%gasoline/dieselwithoutconversion ~50%
%gasoline/dieselwithconversion ~90%

RefineryBlockFlowDiagram

GasolineandDieselPools

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

GASOLINE BLENDING
Source
Alkylate

13

Coker Naphtha

Hydrocracked Naphtha

FCC Naphtha

36

Isomerate

LSR Naphtha

Butanes

Reformate
Total

Blending

% of pool

StraightRun(SR)diesel moderatesulfur,noolefins
FCCLCO highsulfur,olefins,aromatics
Cokerdiesel highsulfur,olefins,aromatics,silicon
Hydrocrackerdiesel lowsulfur,lowolefins,lowaromatics

34
100

UnitsinaRefinery

CrudeUnit
VacuumUnit
Hydrotreating/crackingUnit
FluidCatalyticCrackerUnit
DelayedCokerUnit

Crude/VacuumUnitPFD

CrudeUnit

26

VacuumUnit

Hydrotreater/Hydrocracker

Hydrotreater/HydrcrackerPFD

FluidCatalyticCrackerUnit FCCU

BigSteamPlume

32

DelayedCokerPicture

34

TrendsinRefineryUpgrades/Revamps

Environmental

Reduceproductsulfurcontent

BenzeneReduction EPAMSATIImandate
AirQualityProjects SOxandNOxinFCCandFiredHeaterfluegas
Carboncapture
EPATierIIIforfurthersulfurreductioningasoline
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

TopRefinersWorldwide
RefineryThroughputinBarrels/Day
1
ExxonMobil
2
Royal Dutch Shell
3
Sinopec
4
BP PLC
5
ConocoPhillips
6
Valero Energy
7
Petroleos de Venezuela SA
8
Total SA
9
China National Petroleum Corp.
10
Saudia Aramco
11
Chevron Corp.
12
Petroleo Brasileiro SA
13
Petroleos Mexicanos
14
National Iranian Oil Co.
15
OAO Lukoil
16
OAO Yukos
17
Nippon Oil
18
Repsol YPF
19
Kuwait National Petroleum
20
Pertamina
21
Marathon Oil Corp.
22
Agip Petrolil SpA
23
Sunoco Inc.
24
SK Corp.
25
Indian Oil Corp
Total refining capacity of top 25 worldwide:
Total world refining capacity in 658 refineries:

5,706,000 11%
5,181,000 10%
3,611,000
7%
3,474,000
7%
2,927,000
6%
2,834,000
5%
2,678,000
5%
2,688,000
5%
2,440,000
5%
2,369,000
5%
2,072,000
4%
1,997,000
4%
1,706,000
3%
1,451,000
3%
1,217,000
2%
1,182,000
2%
1,157,000
2%
1,105,000
2%
1,085,000
2%
993,000
2%
974,000
2%
906,000
2%
880,000
2%
817,000
2%
777,000
1%
52,227,000 61%
85,100,000 100%

TopDomesticRefiners
RefineryThroughputinBarrels/Day

1
Valero Energy
2
ConocoPhillips
3
ExxonMobil
4
BP PLC
5
Royal Dutch Shell
6
Marathon
7
Chevron Corp.
8
Sunoco Inc.
9
Petroeos de Venezuel
10 Flint Hills (Koch)
11 Motiva Enterprises
12 Tesoro Corp.
13 Saudi Aramco
14 Lyondell Chemical
15 Total
Top 15 Total
Total American (133 Refineries)

15
13
7
6
9
7
5
5
4
3
3
6
3
1
1

2,323,160
2,222,200
1,956,000
1,475,150
1,084,550
974,000
909,000
880,000
849,400
773,775
730,000
558,000
372,500
282,600
231,452
15,621,787
17,272,169
42

13%
13%
11%
9%
6%
6%
5%
5%
5%
4%
4%
3%
2%
2%
1%
90%

TheChangingGlobalRefiningLandscape
PercentageofWorldwidecapacity
2000

2007

2010

26.5%

24.4%

22.8%

7.8%

7.2%

7.3%

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%

11.7%

11.8%

11.0%

NorthAmerica
South/CentralAmerica
Europe&Eurasia

OtherAsiaPacific/Australia

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