2015 Oil Gas Refining

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Refining 101

Prepared for PESA


May 2015
What is Crude Oil?
BlackGold
.TexasTea

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What is Crude Oil?
BlackGold
.TexasTea

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~15%

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Conversion vs. Separation

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Conversion vs. Separation
Generally,heavycrudeisnotas
valuableaslightercrude
Goal:Makemoregasoline/dieselviaconversion

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

SeparationUnits ConversionUnits
Crude FCC
Vacuum Coker
GasConcentration Hydrocracker
Isomerization
Reformer
Alkylation

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Refining 101
Propane
Butane
Natural Gas
Refinery Fuel Gas
Gasoline
Solvents
Kerosene
Crude Oil Chemical Precursors
Refinery (Plastics, Rubbers, etc.)
Diesel
Heating Oil
Lube Oil
Greases
Asphalt
Pitch
Coke
Byproducts

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Refinery Block Flow Diagram
Units in a Refinery
CrudeUnit
VacuumUnit
Hydrotreating/crackingUnit
FluidCatalyticCrackerUnit
DelayedCokerUnit
GasolineUpgradingUnits

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Refinery Block Flow Diagram Crude/Vac Units
Crude Unit
Vacuum Unit
Refinery Block Flow Diagram Coker
Delayed Coker
Refinery Block Flow Diagram FCC
Fluid Catalytic Cracker - FCC

BigSteamPlume
Refinery Block Flow Diagram Hydrotreaters
Hydrotreater
Sulfur Plant
Refinery Block Flow Diagram Gasoline Upgrading
Gasoline and Diesel Pools
GasolinePool GASOLINE BLENDING
Octane
Environmentalspecs Source % of pool
Regional,rural/urban
Specs Alkylate 13
Octane
Coker Naphtha 1
Vap pressure
Olefins Hydrocracked Naphtha 2
Benzene
Aromatics FCC Naphtha 36
Sulfur
Isomerate 6
Blending
DieselPool LSR Naphtha 3
Onroad(ULSD)/Offroad
Butanes 5
Specs
Cetane autoigniteproperty Reformate 34
Flashpoint
Coldprops cloud/pourpoint Total 100
Blending
StraightRun(SR)diesel moderatesulfur,noolefins
FCCLCO highsulfur,olefins,aromatics
Cokerdiesel highsulfur,olefins,aromatics,silicon
Hydrocrackerdiesel lowsulfur,lowolefins,lowaromatics

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Refining Economics
Reality:Refinersonlymake$515perbarrelofoilprocessed.

TheRealityofRefining:
1) PROCESSINGCOSTS(itcostsatonof$$$tobuildallthatprocessingequipment)
2) VOLUME(onebarrelofcrudedoesnotequalonebarrelofgasoline)
3) FEEDSTOCKPROPERTIES (youhavetobeabletogetcrudesyoucanprocess)

4) MARKETS (refinersareatthemercyofcrudepricesANDgasolineprices)

5) GEOGRAPHY (refineriesaretiedtotheirownregionsbyfeedandproductsupplylines)

6) SEASONALITY (gasolineanddieselareseasonalproducts)

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$150 $225

CrudeandGasolinePrices
$125 RefineryMargins $200

MinMargin MaxMargin CrudePrice GasPrices


$100 $175

$75 $150

$50 $125

$25 $100

$0 $75
Year: 00 01 02 03 04 05 06 07 08 09 10 11

$25 $50

$50 $25

$75 $0
U.S. Refineries

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Refining Capacity vs. Refineries
350 18000
NumberofOperableUS
Refineries
17500
300

OperableCapacityx1000
BBL/Day 17000
250

16500

200

16000

150
15500

100
15000

50 14500
82 83 85 87 89 91 92 94 96 98 99 01 03 05 07 08 10 12 14

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Trends in Refinery Upgrades / Revamps
Environmental
Benzenereduction EPAMSATIImandate
AirqualityProjects SOX andNOX inFCCandfiredheaterfluegas
Carboncapture/CO2 reduction
EPATierIIIforfurthersulfurreductioningasoline
Reduceproductsulfurcontent
Grassrootshydrotreatingunits
Revampexistingunitswithmorecatalystvolume
SulfurRecoveryUnit(SRU)capacity
Hydrogengenerationcapacityorbuyitoverthefence
Crudequalityandcapacityupgrades
Grassrootsconversionunits cokers /hydrocrackers
Metallurgicalupgrades
Pumpupgradesforhigherviscosity/rate
Desalterupgrades
Efficiencyupgrades

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Top Refiners US and Worldwide
Refinery Throughput
Barrels/Day (Jan 2014 OGJ) 1 ExxonMobil
2 RoyalDutchShell
5,589,000
4,109,239
6.3%
4.7%
3 Sinopec 3,971,000 4.5%
4 BPPLC 2,858,964 3.2%
1 ValeroEnergy 12 2,096,500 11.8% 5 SaudiAramco 2,851,500 3.2%
2 Phillips66 12 2,060,200 11.6% 6 ValeroEnergy 2,776,500 3.2%
3 ExxonMobil 7 2,043,500 11.5% 7 PetroleosdeVenezuelaSA 2,678,000 3.0%
4 MarathonOil 8 1,714,000 9.6% 8 ChinaNat'lPetroleumCorp. 2,675,000 3.0%
5 Chevron 5 955,000 5.4% 9 ChevronCorp 2,539,600 2.9%
10 Phillips66 2,514,200 2.9%
6 RoyalDutchShell 8 901,000 5.1%
11 TotalSA 2,304,326 2.6%
7 Citgo/PDVSA 4 849,400 4.8%
12 PetroleoBrasileiroSA 1,997,000 2.3%
8 BPPLC 5 795,900 4.5%
13 MarathonPetroleumCo.LP 1,714,000 1.9%
9 MotivaEnterprises 3 772,000 4.3% 14 PetroleosMexicanos 1,703,000 1.9%
10 FlintHills(Koch) 3 714,400 4.0% 15 Nat'lIranionOilCo. 1,451,000 1.6%
11 Tesoro 6 564,300 3.2% 16 JXNipponOil&EnergyCorp. 1,423,200 1.6%
12 Sunoco 2 505,000 2.8% 17 Rosneft 1,293,000 1.5%
13 SaudiAramco 3 410,000 2.3% 18 OAOLukoil 1,217,000 1.4%
14 EnCanaCorp. 2 276,000 1.5% 19 SKInnovation 1,115,000 1.3%
15 LyondellBasell 1 268,000 1.5% 20 RepsolYPFSA 1,105,500 1.3%
Top15Total 78 14,153,200 79.4% 21 KuwaitNat'lPetroleumCo. 1,085,000 1.2%
22 Pertamina 993,000 1.1%
TotalAmerican 139 17,824,000 100%
23 AgipPetroliSpA 904,000 1.0%
24 FlintHillsResources 714,400 0.8%
25 SunocoInc. 505,000 0.6%
Totalrefiningcapacityoftop25woldwide: 52,087,429 59.2%
Totalworldcapacityin645refineries: 88,029,000 100%
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The Changing Global Refining Landscape
Percentage of Worldwide Capacity

2000 2007 2010 2013


NorthAmerica 26.5% 24.4% 22.8% 22.5%

South/CentralAmerica 7.8% 7.2% 7.3% 6.4%

Europe&Eurasia 28.1% 27.6% 26.7% 25.2%

MiddleEast 7.9% 8.3% 8.6% 9.3%

Africa 3.2% 3.3% 3.6% 3.7%

China 6.1% 8.7% 11.0% 13.3%

India 2.7% 3.4% 4.0% 4.5%

Japan 6.0% 5.3% 4.9% 4.3%

OtherAsiaPacific/Australia 11.7% 11.8% 11.0% 10.9%

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References
USEIA:www.eia.gov
BPEnergyOutlook2013:www.bp.com
Wikipedia:en.wikipedia.org OilRefinery
TheOilDrum:GlobalRefiningCapacity
OilandGasJournal:www.ogj.com
PetroleumRefiningfortheNonTechnicalPerson;WilliamLeffler
AmericanFuelandPetrochemicalManufacturers:www.afpm.org
VariousWoodGroupMustangprojects

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