Petroleum Refining and Economics: Kobbina Awuah (Machinery Engineer/Project Manager, Conocophillips-Bayway Refinery)

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The presentation provides an overview of petroleum refining processes and economics. It discusses the historical use of crude oil, the various distillation and conversion processes used to break down crude oil into useful products like gasoline and diesel, and some of the challenges faced by refineries due to market volatility and regulations.

Early records show crude oil being used as far back as 5000 BC, but widespread commercial use began in the late 19th century. Advances like fractional distillation allowed for higher quality fractions to be produced. The world's first oil refineries opened in the 1850s. Refining processes and capabilities have greatly increased over time to produce a wider range of products.

The main refining processes discussed are atmospheric and vacuum distillation, coking, catalytic cracking, hydrotreating, catalytic reforming, isomerization, alkylation, and blending. These processes are used to distill crude oil fractions, convert heavier components, remove impurities, and rearrange molecules to produce higher octane gasoline and other products.

Petroleum Refining and Economics

Kobbina Awuah (Machinery Engineer/Project Manager, ConocoPhillips-Bayway Refinery)

Outline
Introduction Crude Distillation Conversion processes Treatment processes Product Blending Economics and refining future

Introduction-World Energy Demand and Supply

Introduction-World Energy Demand and Supply

Courtesy of the international Energy Agency 2006 energy report

US consumes approximately 25% of the worlds energy Significant increase in energy consumption among BRIC and developing countries

Introduction-Oil

Courtesy of the international Energy Agency 2006 energy report

Introduction-Oil and refining


Early records indicate crude oil usage in 5000 BC Crude oil produced a lot of soot and smoke Widespread commercial use begins in 19th century By boiling crude at different temperatures, fractions were of a higher quality Worlds first oil refinery opened in 1856 in Romania and 1861 in the US

Introduction-Oil and refining (Cont)


Year Process Name 1862 Atmospheric distillation 1870 Vacuum distillation 1913 Thermal cracking 1916 Sweetening 1930 Thermal reforming 1932 Hydrogenation 1932 Coking 1933 Solvent extraction 1935 Solvent dewaxing 1935 Catalytic polymerization 1937 Catalytic cracking 1939 Visbreaking 1940 Alkylation 1940 Isomerization 1942 Fluid catalytic cracking 1950 Deasphalting 1952 Catalytic reforming 1954 Hydrodesulfurization 1956 Inhibitor sweetening Purpose Produce kerosine lubricants Increase gasoline Reduce sulfur and odor improve octane number Remove sulfur Produce gasoline base stocks Improve lubricant viscosity index Improve pour point Improve gasoline yield and octane number Higher octane gasoline Reduce viscosity Increase gasoline yield and octane Produce alkylation feedstock Increase gasoline yield and octane Increase cracking feedstock Convert low-quality naphtha Remove sulfur remove mercaptans By-Products Napththa Asphalt, residual coker Residual, bunker fuel None Residual sulfur Coke aromatics waxes Petrochemical feedstocks Petrochemical feedstocks Increased distillate tar High-octane aviation gasoline Naptha Petrochemical feedstocks Asphalt Aromatics sulfur disulfides

1957 Catalytic isomerization


1960 Hydrocracking 1974 Catalytic dewaxing 1975 Residual hydrocracking

convert to molecules with high-octane number


Improve quality and reduce sulfur Improve pour point Increase gasoline yield from residual

Alkylation feedstocks
Alkylation feedstocks waxes heavy residuals

Introduction-Oil and refining (Cont)


Year Process Name 1862 Atmospheric distillation 1870 Vacuum distillation Purpose Produce kerosine lubricants By-Products Napththa Asphalt, residual coker

1913 Thermal cracking


1916 Sweetening 1930 Thermal reforming 1932 Hydrogenation 1932 Coking

Increase gasoline
Reduce sulfur and odor improve octane number Remove sulfur Produce gasoline base stocks

Residual, bunker fuel


None Residual sulfur Coke

1933 Solvent extraction


1935 Solvent dewaxing 1935 Catalytic polymerization 1937 Catalytic cracking 1939 Visbreaking 1940 Alkylation 1940 Isomerization 1942 Fluid catalytic cracking 1950 Deasphalting 1952 Catalytic reforming 1954 Hydrodesulfurization 1956 Inhibitor sweetening 1957 Catalytic isomerization 1960 Hydrocracking 1974 Catalytic dewaxing 1975 Residual hydrocracking

Improve lubricant viscosity index


Improve pour point Improve gasoline yield and octane number Higher octane gasoline Reduce viscosity Increase gasoline yield and octane Produce alkylation feedstock Increase gasoline yield and octane Increase cracking feedstock Convert low-quality naphtha Remove sulfur remove mercaptans convert to molecules with high-octane number Improve quality and reduce sulfur Improve pour point Increase gasoline yield from residual

aromatics
waxes Petrochemical feedstocks Petrochemical feedstocks Increased distillate tar High-octane aviation gasoline Naptha Petrochemical feedstocks Asphalt Aromatics sulfur disulfides Alkylation feedstocks Alkylation feedstocks waxes heavy residuals

Introduction-Refinery feedstocks
Basic raw material for refineries is Petroleum or Crude Oil Other feedstocks like natural gas liquids could be used Major properties of crude oil include: API gravity Sulfur content Pour point Carbon residue Nitrogen content Salt content Total acid number

Introduction-Refinery feedstocks
Each barrel of crude oil contains 42 gallons Final product after refining is approximately 44.2 gallons Gasoline:19 to 20 gallons Distillate fuel oil (Diesel & Heating oil): 9.2 Jet fuel oil: 4.1 Residual fuel oil: 2.3 Kerosene: 0.2

Distillation
Accomplished in two steps Distillation into fractions at atm Distillation of bottoms into fractions

Crude Oil Distillation

Distillation-Atmospheric tower
Oil heated to about 750 F prior to entry Main products produced include Fuel gas: methane and ethane Wet gas: Propane and butane LSR naphtha: Desulfurized for gasoline blending Gas oils: Processed in cracker to produce gasoline Residuum: Bottoms

Crude Oil Distillation (Cont)

Conversion Processes-Coking
Coking is the process of converting heavy feedstocks into solid coke and lower-boiling hydrocarbon products for conversion into more valuable fuels Bottoms of crude initially used to generate electricity for operations

Conversion Processes-Catalytic Cracking


Most important aspect of refining Provides 45% of blending stock for gasoline Capable of producing products with higher octane number than thermal cracking procedures Employs catalyst to crack larger molecules into smaller valuable units Catalyst recycled to maximize cracking efficiency FCC units consist mainly of reactor and regenerator

Conversion Processes-Catalytic Cracking (Cont)

http://www.youtube.com/watch?v=uLhblc48NIA&NR=1

Treatment Processes
Hydroprocessing : Reduces boiling points of feedstock and remove impurities Hydrotreating: Removes/reduces sulfur and nitrogen Catalytic Reforming and Isomerization: Rearrangement of molecules to increase octane number for gasoline Alkylation and Polymerization: Rxn of low molecular weight molecules to produce high molecular weight molecules

Product Blending

Refining Economics and Planning


Operating and managing a refinery is very complex Volatile market and stringent environmental regulations impacts operations Use of linear programming models to aid in the economic decision making Monthly planning involves selection of crude oil Daily planning involves planning for unexpected operating changes

Summary
Oil plays a major role in supplying energy Commercial use of crude oil began towards the end of the 19th century Refining enables crude oil to be broken up into useful products FCC and or hydrocracker is considered heart of modern day refining Volatility of oil market makes refining business very challenging Current regulations have increased operating costs and consequently reduced margins

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