Fabusuyi Tosin

79784

Downstream Sector:
Crude Oil Refining
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The Petroleum Industry

Oil Refining
We all recall that...
Petroleum refining is the process of separating the many compounds
present in crude petroleum.
The principle which is used in basic term is that the longer the carbon chain,
the higher the temperature at which the compounds will boil, in a process
known as DISTILLATION.
An Oil refinery or petroleum refinery is an industrial process plant where
crude oil is processed and refined into more useful products

Petroleum Refining Industry

Introduction to the Petroleum Refining Industry

Early History

Characterizing the Petroleum Refining Industry

Refining Capacity

World refining capacity

Types of Refinery/Complexity

The Nelson Index

Industrial Process Description

Industrial Processes in the Refinery

Raw material Inputs and Product outputs

Upgrading a Refinery

Early History

Records of Early Crude Oil usage

Prior to the nineteenth century, petroleum was known and utilized in various fashions in
Babylon, Egypt, China, Persia,Rome and Azerbaijan.

The modern history of the petroleum refinery is said to have begun in 1846 when
Abraham Gessner of Nova Scotia, Canada discovered how to produce kerosene from
coal.

In 1848,Distillation of kerosene from oil by Canadian geologist Dr. Abraham Gesner.

Kerosene eventually replaces whale oil as the illuminant of choice and creates a new
market for crude oil.

In1850,Oil from hand-dug pits in California at Los Angeles is distilled to produce lamp oil
by General Andreas Pico.

In1857,Michael Dietz invents a kerosene lamp that forces whale oil lamps off the
market.

Early History

First Oil refinery in the world

The full fledged refinery was opened in Ploiesti,

Romania in 1856-1857.

It was built by Mehedinteanu brothers with US investments.

The refinery installations were primitive,all the equipment

being build up from iron or raw iron cylindrical vessels,

warmed up directly with wood fire.

It was taken over by Nazi Germany and bombed

during World War II.

Change in product demand

Around 1911, kerosene's output eclipsed for the

1st time by a discarded byproduct gasoline.

Implementation of Technology in History

Characterizing the Petroleum Refining

Industry

Product Characterization

There are specifications for over

2000 individual refinery products.

They can be classified in 2 different ways

By form

Solids: coke, asphalt, briquettes

Liquids: gasoline, kerosene, diesel

Gases: natural gas, butane

By usage

Fuels: gasoline, gasoil, diesel

Finished Non-fuels: solvents,

lubricating oils, greases, wax

Industrial feedstock: ethylene,

propylene, benzene.

Characterizing the Petroleum Refining

Industry

Industry Size and Geographic Distribution

Characterizing the Petroleum Refining

Industry

Economic trends

The key reason behind the lackluster performance of oil and gas companies, including the likes of Exxon Mobil,
BP Plc. and Chevron last year, was thinner refining margins. Almost 80% of the year-on-year decline in
Exxons 2013 full-year operating earnings (earnings adjusted for divestment gains in 2012) can be
attributed to thinner downstream margins. This was primarily due to industry overcapacity amid sluggish
demand and higher crude oil prices.- Forbes Trefis Team.

The major reasons for this are

Industry Overcapacity

Increased focus on ULSF(ultra-low sulfur fuel)

Increased constraint by environmental laws on wastes.

Refining Capacity

World Refining Capacity

Refining Capacity

Different types of refineries

Every refinery has different units/sizes

Determined by crude run and products produced

Far East and European refineries run light crude to produce

more diesel.

East Coast refineries in the US make home heating oil, like

diesel.

Rocky Mountain refineries in the US have limited crude access.

West Coast refineries in the US run relatively heavy crude to

make gasoline and are the most complex in the world..

Specialty plants produce asphalt, solvents or petrochemicals.

Refining Capacity

Types of Refinery/Complexity

A Topping Refinery is the simplest kind of oil refinery. It only splits the crude oil in its main
components. A large portion of SR fuel oil.

Refining Capacity

Types of Refinery/Complexity

A Hydroskimming Refinery is a little more advanced. It has a naphtha reformer (REF) and can produce
gasoline, but maintain a high SR fuel oil production .

Refining Capacity

Types of Refinery/Complexity

A FCC Refinery
-is a medium upgraded refinery
-can convert SR fuel oil to gasoline and diesel in the FCC unit.
There is still some fuel oil production.

Refining Capacity

Types of Refinery/Complexity

A Coker Refinery is the most advanced oil refinery.

It upgrades most of the fuel oil to lighther products.

Refining Capacity

Types of Refinery/Complexity

Refining Capacity

The Nelson Index

A refinery's level of complexity is often based on how much secondary
conversion capacity it has. The Nelson Complexity Index is one
measure of refinery complexity. This index was developed in the 1960s
by W.L. Nelson.

Refinery Nelson Complexity = Sum of (Unit capacity/ CDU capacity x Nelson Factor) for all
units on refinery.

Refining Capacity

The Nelson Index

Refining Capacity

The Nelson Index

Industrial Process Description

Industrial Processes in the Refinery

The processes are divided into

units.
Separation Process

Desalting units

Distillation units

Light ends unit

Deasphalter and dewaxer units

Conversion Units

Catalytic & Thermal Cracker

Catalytic Reformer

Visbreaker and hydrocracker

Alkylater

Delayed Coker

Finishing units

Blending

Hydrotreater

Industrial Process Description

Industrial Processes in a Modern Refinery

Hydroskimming Refinery

A Hydroskimming Refinery is a little more advanced. It has a naphtha reformer (REF) and can produce
gasoline, but maintain a high SR fuel oil production .

Separation Process

Distillation Units: Desalting Unit

Crude oil introduced to refinery

processing contains many undesirable
impurities, such as sand, inorganic
salts, drilling mud, polymer, corrosion
byproduct, etc. The salt content in the
crude oil varies depending on source
of the crude oil. When a mixture from
many crude oil sources is processed
in refinery, the salt content can vary
greatly.

Separation Process

Distillation Units: Atmospheric Distillation Unit

Process Objective:

To distill and separate valuable distillates (naphtha, kerosene, diesel) and atmospheric
gas oil(AGO) from the crude feedstock.

Primary Process Technique:

Complex distillation

Process steps:

Preheat the crude feed utilizing recovered heat from the product streams

Desalt and dehydrate the crude using electrostatic enhanced liquid/liquid

separation (Desalter)

Heat the crude to the desired temperature using fired heaters

Flash the crude in the atmospheric distillation column

Utilize pump around cooling loops to create internal liquid reflux

Product draws are on the top, sides, and bottom

Separation Process

Distillation Units: Atmospheric Distillation Process Schematic

Conversion Process: Catalytic Reforming

Process Objective: To convert low-octane naphtha into a high octane reformate for
gasoline blending and/or to provide aromatics (benzene, toluene, and xylene) for
petrochemical plants. Reforming also produces high purity hydrogen for hydrotreating
processes.

Primary Process Technique:

Reforming reactions occur in chloride promoted fixed catalyst beds; or

continuous catalyst regeneration (CCR) beds where the catalyst is transferred
from one stage to another, through a catalyst regenerator and back again.

Process steps

Naphtha feed and recycle hydrogen are mixed, heated and sent through
successive reactor beds

Each pass requires heat input to drive the reactions

Final pass effluent is separated with the hydrogen being recycled or purged for
hydrotreating

Reformate product can be further processed to separate aromatic components

or be used for gasoline blending

Catalytic Reforming Process

Treatment: Hydrotreating

Process Objective: To remove contaminants (sulfur, nitrogen, metals) and

saturate olefins and aromatics to produce a clean product for further processing or
finished product.

Primary Process Technique:

Hydrogenation occurs in a fixed catalyst bed to improve H/C ratios and to remove

sulfur, nitrogen, and metals.

Process steps

Feed is preheated using the reactor effluent

Hydrogen is combined with the feed and heated to the desired hydrotreating
temperature using a fired heater

Feed and hydrogen pass downward in a hydrogenation reactor packed with various
types of catalyst depending upon reactions desired

Reactor effluent is cooled and enter the high pressure separator which separates the
liquid hydrocarbon from the hydrogen/hydrogen sulfide/ammonia gas

Acid gases are absorbed from the hydrogen in the amine absorber

Hydrogen, minus purges, is recycled with make-up hydrogen

Treatment: Hydrotreating

Why Upgrade An Oil Refinery?

Oil refining releases carbon dioxide into the atmosphere

Response to changing market demands for certain products
Government regulations
Clean Air Act Amendments of 1990 (CAAA90)
Changing consumer demand for better and different products
Decrease the number of non-hydrocarbons, impurities, and other
constituents
Potential physical, mechanical, chemical, and health hazards are
recognized in air

Trends in Refinery Upgrades / Revamps

Environmental
Benzene Reduction EPA MSAT II mandate
Air Quality Projects
-SOx and NOx in FCC and Fired Heater flue gas
Carbon capture
EPA Tier III for further sulfur reduction in gasoline
Reduce product sulfur content
Grassroots Hydrotreating units
Revamp existing units with more catalyst volume
Sulfur Recovery Unit (SRU) capacity
Hydrogen generation capacity or buy it over the fence
Crude quality and capacity upgrades
Grassroots conversion units cokers / hydrocrackers
Metallurgical upgrades
Pump upgrades for higher viscosity / rate
Desalter upgrades
Efficiency upgrades

Separation Process

Distillation Units: Deasphalting Unit

Solvent deasphalting is a refinery process for

extracting asphaltenes and resins from heavy vacuum
gas oil, atmospheric residue or vacuum residue to
produce valuable, deasphalted oil that otherwise can
not be recovered from the residue by conventional
distillation.The process consists of contacting the
feedstock with a solvent in a countercurrent extractor
at temperatures and pressures to precipitate the
asphaltene and resin fractions that are not soluble in
the solvent.

Separation Process

Distillation Units: Vacuum Distillation Unit.

Process Objective:

To recover valuable gas oils from reduced crude via vacuum distillation.

Primary Process Technique:

Reduce the hydrocarbon partial pressure via vacuum and stripping steam.

Process steps:

Heat the crude to the desired temperature using fired heaters

Flash the crude in the vacuum distillation column

Utilize pump around cooling loops to create internal liquid reflux

Product draws are on the top, sides, and bottom

Conclusion
The Oil Refinery is a capital intensive high
risk business.
They are run based on market demands.
The need to have upgradable refineries is
a new R&D opportunity
Environmental and waste control is a big
deal.

References

US EIA: www.eia.gov
www.epa.gov
BP Energy Outlook 2011: www.bp.com
w ww.wikipedia.org
2009 Process Engineering Associates, LLC
www.chevronmodernization.com
www.insidemines.edu
www.oildrum.com
StatOil investor centre presentations
www.enggcyclopedia.com