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 Chemical Precursors (Plastics, Rubbers, etc.) Heating Oil Lube Oil Greases Asphalt Pitch Coke Byproducts

Refinery
Diesel

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 Octane VapPress Olefins Benzene Aromatics Sulfur

GASOLINE BLENDING Source Alkylate Coker Naphtha Hydrocracked Naphtha FCC Naphtha Isomerate LSR Naphtha Butanes Reformate Total % of pool 13 1 2 36 6 3 5 34 100

Specs

Blending

DieselPool
OnRoad(ULSD)/OffRoad Specs
Cetane AutoIgniteProperty FlashPoint ColdProps Cloud/PourPoint

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

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
BenzeneReduction EPAMSATIImandate AirQualityProjects SOxandNOxinFCCandFiredHeaterfluegas Carboncapture EPATierIIIforfurthersulfurreductioningasoline GrassrootsHydrotreatingunits Revampexistingunitswithmorecatalystvolume SulfurRecoveryUnit(SRU)capacity Hydrogengenerationcapacityorbuyitoverthefence Grassrootsconversionunits cokers/hydrocrackers Metallurgicalupgrades Pumpupgradesforhigherviscosity/rate Desalterupgrades Efficiencyupgrades

Reduceproductsulfurcontent

Crudequalityandcapacityupgrades

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 NorthAmerica South/CentralAmerica Europe&Eurasia MiddleEast Africa China India Japan OtherAsiaPacific/Australia
26.5% 7.8% 28.1% 7.9% 3.2% 6.1% 2.7% 6.0% 11.7%

2007
24.4% 7.2% 27.6% 8.3% 3.3% 8.7% 3.4% 5.3% 11.8%

2010
22.8% 7.3% 26.7% 8.6% 3.6% 11.0% 4.0% 4.9% 11.0%

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