Petroleum - Industry Of The Future

How Oil Drilling Works In 2005 alone, the United States produced an estimated 9 million barrels of crude oil per day and imported 13.21 million barrels per day from other countries. This oil gets refined into gasoline, kerosene, heating oil and other products. To keep up with our consumption, oil companies must constantly look for new sources of petroleum, as well as improve the production of existing wells. How does a company go about finding oil and pumping it from the ground? You may have seen images of black crude oil gushing out of the ground, or seen an oil well in movies and television shows like "Giant," "Oklahoma Crude," "Armageddon" and "Beverly Hillbillies." But modern oil production is quite different from the way it's portrayed in the movies. In this article, we will examine how modern oil exploration and drilling works. We will discuss how oil is formed, found and extracted from the ground. Oil is a fossil fuel that can be found in many countries around the world. In this section, we will discuss how oil is formed and how geologists find it. Forming Oil Oil is formed from the remains of tiny plants and animals (plankton) that died in ancient seas between 10 million and 600 million years ago. After the organisms died, they sank into the sand and mud at the bottom of the sea.

Photo courtesy Institute of Petroleum Oil forms from dead organisms in ancient seas.

Over the years, the organisms decayed in the sedimentary layers. In these layers, there was little or no oxygen present. So microorganisms broke the remains into carbon-rich compounds that formed organic layers. The organic material mixed with the sediments, forming fine-grained shale, or source rock. As new sedimentary layers were deposited, they exerted intense pressure and heat on the source rock. The heat Photo courtesy Institute and pressure distilled the organic material into crude oil and of Petroleum natural gas. The oil flowed from the source rock and Close-up of reservoir accumulated in thicker, more porous limestone or sandstone, rock called reservoir rock. Movements in the Earth trapped the oil (oil is in black) and natural gas in the reservoir rocks between layers of impermeable rock, or cap rock, such as granite or marble.

Photo courtesy Institute of Petroleum Oil reservoir rocks (red) and natural gas (blue) can be trapped by folding (left), faulting (middle) or pinching out (right). These movements of the Earth include: Folding - Horizontal movements press inward and move the rock layers upward into a fold or anticline. Faulting - The layers of rock crack, and one side shifts upward or downward. Pinching out - A layer of impermeable rock is squeezed upward into the reservoir rock.

Locating Oil The task of finding oil is assigned to geologists, whether employed directly by an oil company or under contract from a private firm. Their task is to find the right conditions for an oil trap -- the right source rock, reservoir rock and entrapment. Many years ago, geologists interpreted surface features, surface rock and soil types, and perhaps some small core samples obtained by shallow drilling. Modern oil geologists also examine surface rocks and terrain, with the additional help of satellite images. However, they also use a variety of other methods to find oil. They can use sensitive gravity meters to measure tiny changes in the Earth's gravitational field that could indicate flowing oil, as well as sensitive magnetometers to measure tiny changes in the Earth's magnetic field caused by flowing oil. They can detect the smell of hydrocarbons using sensitive electronic noses called sniffers. Finally, and most commonly, they use seismology, creating shock waves that pass through hidden rock layers and interpreting the waves that are reflected back to the surface.

Photo courtesy Institute of Petroleum Searching for oil over water using seismology In seismic surveys, a shock wave is created by the following: Compressed-air gun - shoots pulses of air into the water (for exploration over water) Thumper truck - slams heavy plates into the ground (for exploration over land) Explosives - drilled into the ground (for exploration over land) or thrown overboard (for exploration over water), and detonated The shock waves travel beneath the surface of the Earth and are reflected back by the various rock layers. The reflections travel at different speeds depending upon the type or density of rock layers through which they must pass. The reflections of the shock

waves are detected by sensitive microphones or vibration detectors -- hydrophones over water, seismometers over land. The readings are interpreted by seismologists for signs of oil and gas traps. Although modern oil-exploration methods are better than previous ones, they still may have only a 10-percent success rate for finding new oil fields. Once a prospective oil strike is found, the location is marked by GPS coordinates on land or by marker buoys on water. Oil Drilling Preparation Once the site has been selected, it must be surveyed to determine its boundaries, and environmental impact studies may be done. Lease agreements, titles and right-of way accesses for the land must be obtained and evaluated legally. For off-shore sites, legal jurisdiction must be determined. Once the legal issues have been settled, the crew goes about preparing the land: 1. The land is cleared and leveled, and access roads may be built. 2. Because water is used in drilling, there must be a source of water nearby. If there is no natural source, they drill a water well. 3. They dig a reserve pit, which is used to dispose of rock cuttings and drilling mud during the drilling process, and line it with plastic to protect the environment. If the site is an ecologically sensitive area, such as a marsh or wilderness, then the cuttings and mud must be disposed offsite -- trucked away instead of placed in a pit. Once the land has been prepared, several holes must be dug to make way for the rig and the main hole. A rectangular pit, called a cellar, is dug around the location of the actual drilling hole. The cellar provides a work space around the hole, for the workers and drilling accessories. The crew then begins drilling the main hole, often with a small drill truck rather than the main rig. The first part of the hole is larger and shallower than the main portion, and is lined with a large-diameter conductor pipe. Additional holes are dug off to the side to temporarily store equipment -- when these holes are finished, the rig equipment can be brought in and set up. Depending upon the remoteness of the drill site and its access, equipment may be transported to the site by truck, helicopter or barge. Some rigs are built on ships or barges for work on inland water where there is no foundation to support a rig (as in marshes or lakes). In the next section, we'll look at the major systems of an oil rig.

Oil Rig Systems Once the equipment is at the site, the rig is set up. Here are the major systems of a land oil rig:

Anatomy of an oil rig Power system  large diesel engines - burn diesel-fuel oil to provide the main source of power  electrical generators - powered by the diesel engines to provide electrical power Mechanical system - driven by electric motors  hoisting system - used for lifting heavy loads; consists of a mechanical winch (drawworks) with a large steel cable spool, a block-and-tackle pulley and a receiving storage reel for the cable  turntable - part of the drilling apparatus Rotating equipment - used for rotary drilling  swivel - large handle that holds the weight of the drill string; allows the string to rotate and makes a pressure-tight seal on the hole  kelly - four- or six-sided pipe that transfers rotary motion to the turntable and drill string

turntable or rotary table - drives the rotating motion using power from electric motors  drill string - consists of drill pipe (connected sections of about 30 ft / 10 m) and drill collars (larger diameter, heavier pipe that fits around the drill pipe and places weight on the drill bit)  drill bit(s) - end of the drill that actually cuts up the rock; comes in many shapes and materials (tungsten carbide steel, diamond) that are specialized for various drilling tasks and rock formations Casing - large-diameter concrete pipe that lines the drill hole, prevents the hole from collapsing, and allows drilling mud to circulate 

Circulation system - pumps drilling mud (mixture of water, clay, weighting material and chemicals, used to lift rock cuttings from the drill bit to the surface) under pressure through the kelly, rotary table, drill pipes and drill collars  pump - sucks mud from the mud pits and pumps it to the drilling apparatus  pipes and hoses - connects pump to drilling apparatus  mud-return line - returns mud from hole  shale shaker - shaker/sieve that separates rock cuttings from the mud Photo courtesy Institute  shale slide - conveys cuttings to the reserve of Petroleum pit Mud circulation in  reserve pit - collects rock cuttings separated the hole from the mud  mud pits - where drilling mud is mixed and recycled  mud-mixing hopper - where new mud is mixed and then sent to the mud pits

Drill-mud circulation system

Derrick - support structure that holds the drilling apparatus; tall enough to allow new sections of drill pipe to be added to the drilling apparatus as drilling progresses Blowout preventer - high-pressure valves (located under the land rig or on the sea floor) that seal the high-pressure drill lines and relieve pressure when necessary to prevent a blowout (uncontrolled gush of gas or oil to the surface, often associated with fire) The Oil Drilling Process The crew sets up the rig and starts the drilling operations. First, from the starter hole, they drill a surface hole down to a pre-set depth, which is somewhere above where they think the oil trap is located. There are five basic steps to drilling the surface hole: 1. Place the drill bit, collar and drill pipe in the hole. 2. Attach the kelly and turntable and begin drilling. 3. As drilling progresses, circulate mud through the pipe and out of the bit to float the rock cuttings out of the hole. 4. Add new sections (joints) of drill pipes as the hole gets deeper. 5. Remove (trip out) the drill pipe, collar and bit when the pre-set depth (anywhere from a few hundred to a couple-thousand feet) is reached.

Photo courtesy Phillips Petroleum Co. Rotary workers trip drill pipe

Once they reach the pre-set depth, they must run and cement the casing -- place casing-pipe sections into the hole to prevent it from collapsing in on itself. The casing pipe has spacers around the outside to keep it centered in the hole.

The casing crew puts the casing pipe in the hole. The cement crew pumps cement down the casing pipe using a bottom plug, a cement slurry, a top plug and drill mud. The pressure from the drill mud causes the cement slurry to move through the casing and fill the space between the outside of the casing and the hole. Finally, the cement is allowed to harden and then tested for such properties as hardness, alignment and a proper seal. In the next section we'll find out what happens once the drill bit reaches the final depth. New Drilling Technologies The U.S. Department of Energy and the oil industry are working on new ways to drill oil, including horizontal drilling techniques, to reach oil under ecologically-sensitive areas, and using lasers to drill oil wells.

Testing for Oil Drilling continues in stages: They drill, then run and cement new casings, then drill again. When the rock cuttings from the mud reveal the oil sand from the reservoir rock, they may have reached the final depth. At this point, they remove the drilling apparatus from the hole and perform several tests to confirm this finding: Well logging - lowering electrical and gas sensors into the hole to take measurements of the rock formations there Drill-stem testing - lowering a device into the hole to measure the pressures, which will reveal whether reservoir rock has been reached Core samples - taking samples of rock to look for characteristics of reservoir rock

Once they have reached the final depth, the crew completes the well to allow oil to flow into the casing in a controlled manner. First, they lower a perforating gun into the well to the production depth. The gun has explosive charges to create holes in the casing through which oil can flow. After the casing has been perforated, they run a small-diameter pipe (tubing) into the hole as a conduit for oil and gas to flow up the well. A device called a packer is run down the outside of the tubing. When the packer is set at the production level, it is expanded to form a seal around the outside of the tubing. Finally, they connect a multi-valved structure called a Christmas tree to the top of the tubing and cement it to the top of the casing. The Christmas tree allows them to control the flow of oil from the well.

Blowouts and Fires In the movies, you see oil gushing (a blowout), and perhaps even a fire, when drillers reach the final depth. These are actually dangerous conditions, and are (hopefully) prevented by the blowout preventer and the pressure of the drilling mud. In most wells, the oil flow must be Once the well is completed, they must start the flow of oil into started by acidizing or the well. For limestone reservoir rock, acid is pumped down the fracturing the well. well and out the perforations. The acid dissolves channels in the limestone that lead oil into the well. For sandstone reservoir rock, a specially blended fluid containing proppants (sand, walnut shells, aluminum pellets) is pumped down the well and out the perforations. The pressure from this fluid makes small fractures in the sandstone that allow oil to flow into the well, while the proppants hold these fractures open. Once the oil is flowing, the oil rig is removed from the site and production equipment is set up to extract the oil from the well.

Extracting Oil After the rig is removed, a pump is placed on the well head.

Photo courtesy California Department of Conservation Pump on an oil well In the pump system, an electric motor drives a gear box that moves a lever. The lever pushes and pulls a polishing rod up and down. The polishing rod is attached to a sucker rod, which is attached to a pump. This system forces the pump up and down, creating a suction that draws oil up through the well. In some cases, the oil may be too heavy to flow. A second hole is then drilled into the reservoir and steam is injected under pressure. The heat from the steam thins the oil in the reservoir, and the pressure helps push it up the well. This process is called enhanced oil recovery.

Photo courtesy California Department of Conservation Enhanced oil recovery With all of this oil-drilling technology in use, and new methods in development, the question remains: Will we have enough oil to meet our needs? Current estimates suggest that we have enough oil for about 63 to 95 years to come, based on current and future finds and present demands. For more information on oil drilling and related topics, including oil refining, check out the links on the next page.

How Oil Refining Works In movies and television shows -- Giant, Oklahoma Crude, Armageddon, Beverly Hillbillies -- we have seen images of thick, black crude oil gushing out of the ground or a drilling platform. But when you pump the gasoline for your car, you've probably noticed that it is clear. And there are so many other products that come from oil, including crayons, plastics, heating oil, jet fuel, kerosene, synthetic fibers and tires. How is it possible to start with crude oil and end up with gasoline and all of these other products? In this article, we will examine the chemistry and technology involved in refining crude oil to produce all of these different things. Crude Oil On average, crude oils are made of the following elements or compounds: Carbon - 84% Hydrogen - 14% Sulfur - 1 to 3% (hydrogen sulfide, sulfides, disulfides, elemental sulfur) Nitrogen - less than 1% (basic compounds with amine groups) Oxygen - less than 1% (found in organic compounds such as carbon dioxide, phenols, ketones, carboxylic acids) Metals - less than 1% (nickel, iron, vanadium, copper, arsenic) Salts - less than 1% (sodium chloride, magnesium chloride, calcium chloride)

Crude oil is the term for "unprocessed" oil, the stuff that comes out of the ground. It is also known as petroleum. Crude oil is a fossil fuel, meaning that it was made naturally from decaying plants and animals living in ancient seas millions of years ago -- most places you can find crude oil were once sea beds. Crude oils vary in color, from clear to tar-black, and in viscosity, from water to almost solid.

Crude oils are such a useful starting point for so many different substances because they contain hydrocarbons. Hydrocarbons are molecules that contain hydrogen and carbon and come in various lengths and structures, from straight chains to branching chains to rings. There are two things that make hydrocarbons exciting to chemists: Hydrocarbons contain a lot of energy. Many of the things derived from crude oil like gasoline, diesel fuel, paraffin wax and so on take advantage of this energy. Hydrocarbons can take on many different forms. The smallest hydrocarbon is methane (CH4), which is a gas that is a lighter than air. Longer chains with 5 or more carbons are liquids. Very long chains are solids like wax or tar. By chemically cross-linking hydrocarbon chains you can get everything from synthetic rubber to nylon to the plastic in tupperware. Hydrocarbon chains are very versatile! The major classes of hydrocarbons in crude oils include: Paraffins  general formula: CnH2n+2 (n is a whole number, usually from 1 to 20)  straight- or branched-chain molecules  can be gasses or liquids at room temperature depending upon the molecule  examples: methane, ethane, propane, butane, isobutane, pentane, hexane Aromatics  general formula: C6H5 - Y (Y is a longer, straight molecule that connects to the benzene ring)  ringed structures with one or more rings  rings contain six carbon atoms, with alternating double and single bonds between the carbons  typically liquids  examples: benzene, napthalene Napthenes or Cycloalkanes  general formula: CnH2n (n is a whole number usually from 1 to 20)  ringed structures with one or more rings  rings contain only single bonds between the carbon atoms  typically liquids at room temperature  examples: cyclohexane, methyl cyclopentane Other hydrocarbons  Alkenes general formula: CnH2n (n is a whole number, usually from 1 to 20) linear or branched chain molecules containing one carbon-carbon double-bond can be liquid or gas examples: ethylene, butene, isobutene  Dienes and Alkynes

general formula: CnH2n-2 (n is a whole number, usually from 1 to 20) linear or branched chain molecules containing two carbon-carbon double-bonds can be liquid or gas examples: acetylene, butadienes To see examples of the structures of these types of hydrocarbons, see the OSHA Technical Manual and this page on the Refining of Petroleum. Now that we know what's in crude oil, let's see what we can make from it. From Crude Oil The problem with crude oil is that it contains hundreds of different types of hydrocarbons all mixed together. You have to separate the different types of hydrocarbons to have anything useful. Fortunately there is an easy way to separate things, and this is what oil refining is all about. Different hydrocarbon chain lengths all have progressively higher boiling points, so they can all be separated by distillation. This is what happens in an oil refinery - in one part of the process, crude oil is heated and the different chains are pulled out by their vaporization temperatures. Each different chain length has a different property that makes it useful in a different way. To understand the diversity contained in crude oil, and to understand why refining crude oil is so important in our society, look through the following list of products that come from crude oil: Petroleum gas - used for heating, cooking, making plastics  small alkanes (1 to 4 carbon atoms)  commonly known by the names methane, ethane, propane, butane  boiling range = less than 104 degrees Fahrenheit / 40 degrees Celsius  often liquified under pressure to create LPG (liquified petroleum gas) Naphtha or Ligroin - intermediate that will be further processed to make gasoline  mix of 5 to 9 carbon atom alkanes  boiling range = 140 to 212 degrees Fahrenheit / 60 to 100 degrees Celsius Gasoline - motor fuel  liquid  mix of alkanes and cycloalkanes (5 to 12 carbon atoms)  boiling range = 104 to 401 degrees Fahrenheit / 40 to 205 degrees Celsius Kerosene - fuel for jet engines and tractors; starting material for making other products  liquid

mix of alkanes (10 to 18 carbons) and aromatics  boiling range = 350 to 617 degrees Fahrenheit / 175 to 325 degrees Celsius Gas oil or Diesel distillate - used for diesel fuel and heating oil; starting material for making other products  liquid  alkanes containing 12 or more carbon atoms  boiling range = 482 to 662 degrees Fahrenheit / 250 to 350 degrees Celsius Lubricating oil - used for motor oil, grease, other lubricants  liquid  long chain (20 to 50 carbon atoms) alkanes, cycloalkanes, aromatics  boiling range = 572 to 700 degrees Fahrenheit / 300 to 370 degrees Celsius Heavy gas or Fuel oil - used for industrial fuel; starting material for making other products  liquid  long chain (20 to 70 carbon atoms) alkanes, cycloalkanes, aromatics  boiling range = 700 to 1112 degrees Fahrenheit / 370 to 600 degrees Celsius Residuals - coke, asphalt, tar, waxes; starting material for making other products  solid  multiple-ringed compounds with 70 or more carbon atoms  boiling range = greater than 1112 degrees Fahrenheit / 600 degrees Celsius 

You may have noticed that all of these products have different sizes and boiling ranges. Chemists take advantage of these properties when refining oil. Look at the next section to find out the details of this fascinating process.

The Refining Process As mentioned previously, a barrel of crude oil has a mixture of all sorts of hydrocarbons in it. Oil refining separates everything into useful substances. Chemists use the following steps: 1. The oldest and most common way to separate things into various components (called fractions), is to do it using the differences in boiling temperature. This process is called fractional distillation. You basically heat crude oil up, let it vaporize and then condense the vapor. 2. Newer techniques use Chemical processing on some of the fractions to make others, in a process called conversion. Chemical processing, for example, can break longer chains into shorter ones. This allows a refinery to turn diesel fuel into gasoline depending on the demand for gasoline. 3. Refineries must treat the fractions to remove impurities. 4. Refineries combine the various fractions (processed, unprocessed) into mixtures to make desired products. For example, different mixtures of chains can create gasolines with different octane ratings.

Photo courtesy Phillips Petroleum Company An oil refinery The products are stored on-site until they can be delivered to various markets such as gas stations, airports and chemical plants. In addition to making the oil-based products, refineries must also treat the wastes involved in the processes to minimize air and water pollution. In the next section, we will look at how we separate crude oil into its components.

Fractional Distillation The various components of crude oil have different sizes, weights and boiling temperatures; so, the first step is to separate these components. Because they have different boiling temperatures, they can be separated easily by a process called fractional distillation. The steps of fractional distillation are as follows: 1. You heat the mixture of two or more substances (liquids) Photo courtesy Phillips Petroleum with different boiling points to a high temperature. Distillation columns Heating is usually done with high pressure steam to in an oil refinery temperatures of about 1112 degrees Fahrenheit / 600 degrees Celsius. 2. The mixture boils, forming vapor (gases); most substances go into the vapor phase. 3. The vapor enters the bottom of a long column (fractional distillation column) that is filled with trays or plates. The trays have many holes or bubble caps (like a loosened cap on a soda bottle) in them to allow the vapor to pass through. The trays increase the contact time between the vapor and the liquids in the column. The trays help to collect liquids that form at various heights in the column. There is a temperature difference across the column (hot at the bottom, cool at the top). 4. The vapor rises in the column. 5. As the vapor rises through the trays in the column, it cools. 6. When a substance in the vapor reaches a height where the temperature of the column is equal to that substance's boiling point, it will condense to form a liquid. (The substance with the lowest boiling point will condense at the highest point in the column; substances with higher boiling points will condense lower in the column.). 7. The trays collect the various liquid fractions. 8. The collected liquid fractions may: pass to condensers, which cool them further, and then go to storage tanks go to other areas for further chemical processing Fractional distillation is useful for separating a mixture of substances with narrow differences in boiling points, and is the most important step in the refining process. Very few of the components come out of the fractional distillation column ready for market. Many of them must be chemically processed to make other fractions. For example, only 40% of distilled crude oil is gasoline; however, gasoline is one of the major products made by oil companies. Rather than continually distilling large quantities

of crude oil, oil companies chemically process some other fractions from the distillation column to make gasoline; this processing increases the yield of gasoline from each barrel of crude oil. In the next section, we'll look at how we chemically process one fraction into another. Chemical Processing You can change one fraction into another by one of three methods: breaking large hydrocarbons into smaller pieces (cracking) combining smaller pieces to make larger ones (unification) rearranging various pieces to make desired hydrocarbons (alteration) Cracking Cracking takes large hydrocarbons and breaks them into smaller ones.

Cracking breaks large chains into smaller chains. There are several types of cracking: Thermal - you heat large hydrocarbons at high temperatures (sometimes high pressures as well) until they break apart.  steam - high temperature steam (1500 degrees Fahrenheit / 816 degrees Celsius) is used to break ethane, butane and naptha into ethylene and benzene, which are used to manufacture chemicals.  visbreaking - residual from the distillation tower is heated (900 degrees Fahrenheit / 482 degrees Celsius), cooled with gas oil and rapidly burned

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(flashed) in a distillation tower. This process reduces the viscosity of heavy weight oils and produces tar. coking - residual from the distillation tower is heated to temperatures above 900 degrees Fahrenheit / 482 degrees Celsius until it cracks into heavy oil, gasoline and naphtha. When the process is done, a heavy, almost pure carbon residue is left (coke); the coke is cleaned from the cokers and sold.

Catalytic - uses a catalyst to speed up the cracking reaction. Catalysts include zeolite, aluminum hydrosilicate, bauxite and silicaalumina.  fluid catalytic cracking - a hot, fluid catalyst (1000 degrees Fahrenheit / 538 degrees Celsius) cracks heavy gas oil into diesel oils and gasoline.  hydrocracking - similar to fluid catalytic cracking, but uses a different catalyst, lower temperatures, higher pressure, and hydrogen gas. It takes heavy oil and cracks it into gasoline and kerosene (jet fuel).

Photo courtesy Phillips Petroleum Company Catalysts used in catalytic cracking or reforming

After various hydrocarbons are cracked into smaller hydrocarbons, the products go through another fractional distillation column to separate them. Unification Sometimes, you need to combine smaller hydrocarbons to make larger ones -- this process is called unification. The major unification process is called catalytic

reforming and uses a catalyst (platinum, platinum-rhenium mix) to combine low weight naphtha into aromatics, which are used in making chemicals and in blending gasoline. A significant by-product of this reaction is hydrogen gas, which is then either used for hydrocracking or sold.

A reformer combines chains. Alteration Sometimes, the structures of molecules in one fraction are rearranged to produce another. Commonly, this is done using a process called alkylation. In alkylation, low molecular weight compounds, such as propylene and butylene, are mixed in the presence of a catalyst such as hydrofluoric acid or sulfuric acid (a by-product from removing impurities from many oil products). The products of alkylation are high octane hydrocarbons, which are used in gasoline blends to reduce knocking (see "What does octane mean?" for details).

Rearranging chains. Now that we have seen how various fractions are changed, we will discuss the how the fractions are treated and blended to make commercial products.

An oil refinery is a combination of all of these units. Treating and Blending the Fractions Distillated and chemically processed fractions are treated to remove impurities, such as organic compounds containing sulfur, nitrogen, oxygen, water, dissolved metals and inorganic salts. Treating is usually done by passing the fractions through the following: a column of sulfuric acid - removes unsaturated hydrocarbons (those with carboncarbon double-bonds), nitrogen compounds, oxygen compounds and residual solids (tars, asphalt) an absorption column filled with drying agents to remove water sulfur treatment and hydrogen-sulfide scrubbers to remove sulfur and sulfur compounds After the fractions have been treated, they are cooled and then blended together to make various products, such as: gasoline of various grades, with or without additives lubricating oils of various weights and grades (e.g. 10W40, 5W-30) kerosene of various various grades jet fuel diesel fuel heating oil chemicals of various grades for making plastics and other polymers For more information on the fascinating world of oil refining and petroleum chemistry, check out the links on the next page.

Photo courtesy Phillips Petroleum Plastics produced from refined oil fractions

Fractional Distillation of Crude Oil BOILING POINTS AND STRUCTURES OF HYDROCARBONS The boiling points of organic compounds can give important clues to other physical properties. A liquid boils when its vapor pressure is equal to the atmospheric pressure. Vapor pressure is determined by the kinetic energy of molecules. Kinetic energy is related to temperature and the mass and velocity of the molecules. When the temperature reaches the boiling point, the average kinetic energy of the liquid particles is sufficient to overcome the forces of attraction that hold molecules in the liquid state. Then these molecules break away from the liquid forming the gas state. Vapor pressure is caused by an equilibrium between molecules in the gaseous state and molecules in the liquid state. When molecules in the liquid state have sufficient kinetic energy, they may escape from the surface and turn into a gas. Molecules with the most independence in individual motions achieve sufficient kinetic energy (velocities) to escape at lower temperatures. The vapor pressure will be higher and therefore the compound will boil at a lower temperature. BOILING POINT PRINCIPLE: Molecules which strongly interact or bond with each other through a variety of intermolecular forces can not move easily or rapidly and therefore, do not achieve the kinetic energy necessary to escape the liquid state. Therefore, molecules with strong intermolecular forces will have higher boiling points. This is a consequence of the increased kinetic energy needed to break the intermolecular bonds so that individual molecules may escape the liquid as gases. THE BOILING POINT CAN BE A ROUGH MEASURE OF THE AMOUNT OF ENERGY NECESSARY TO SEPARATE A LIQUID MOLECULE FROM ITS NEAREST NEIGHBORS.

MOLECULAR WEIGHT AND CHAIN LENGTH TRENDS IN BOILING POINTS A series of alkanes demonstrates the general principle that boiling points increase as molecular weight or chain length increases (table 1.). Table 1. BOILING POINTS OF ALKANES

Boiling Point C

Formula

Name

CH4

Methane

-161

CH3CH3

Ethane

- 89

CH3CH2CH3

Propane

- 42

CH3CH2CH2CH3

Butane

-0.5

CH3CH2CH2CH2CH3

Pentane

+ 36

CH3(CH2)6CH3

Octane

+125

Normal State at Room Temp. +20 C gas

liquid

QUES. State whether the compounds above will be a gas or liquid state at room temperature (20 C). Hint: If the boiling point is below 20 C, then the liquid has already boiled andthe compound is a gas. The reason that longer chain molecules have higher boiling points is that longer chain molecules become wrapped around and enmeshed in each other much like the strands of spaghetti. More energy is needed to separate them than short molecules which have only weak forces of attraction for each other.

FOCUS ON FOSSIL FUELS Petroleum refining is the process of separating the many compounds present in crude petroleum. The principle which is used is that the longer the carbon chain, the higher the temperature at which the compounds will boil. The crude petroleum is heated and changed into a gas. The gases are passed through a distillation column which becomes cooler as the height increases. When a compound in the gaseous state cools below its boiling point, it condenses into a liquid. The liquids may be drawn off the distilling column at various heights. Although all fractions of petroleum find uses, the greatest demand is for gasoline. One barrel of crude petroleum contains only 30-40% gasoline. Transportation demands require that over 50% of the crude oil be converted into gasoline. To meet this demand some petroleum fractions must be converted to gasoline. This may be done by "cracking" - breaking down large molecules of heavy heating oil; "reforming" - changing molecular structures of low quality gasoline molecules; or "polymerization" - forming longer molecules from smaller ones. For example if pentane is heated to about 500 C the covalent carbon-carbon bonds begin to break during the cracking process. Many kinds of compounds including alkenes are made during the cracking process. Alkenes are formed because there are not enough hydrogens to saturate all bonding positions after the carbon-carbon bonds are broken.

MOTORS AND DRIVES USED IN OIL REFINERIES. >> An oil refinery and its important units. An oil refinery is an industrial process plant where crude oil is processed and refined into more useful petroleum products, such as gasoline, diesel fuel, asphalt base, heating oil, kerosene, and liquefied petroleum gas. Oil refineries are typically large sprawling industrial complexes with extensive piping running throughout, carrying streams of fluids between large chemical processing units. The various units in an oil refinery and their functions are as follows:  CAT CRACKER:  A catalytic cracker, or "cat cracker," is the basic gasoline-making process in a refinery. The cat cracker uses high temperatures, low pressure, and a catalyst to create a chemical reaction that breaks heavy gas oil into smaller gasoline molecules. With a cat cracker, more of each barrel of oil can be turned into gasoline.  Corro duty- Used for the regenerator’s compressors and other severe duties.  IEEE841- Used for driving air at constant speed into the catalytic reactor and the regenerator.  hazardous location motor- Used for pumps, fans, compressors, conveyors in a cracking unit.  DISTILLER:  Distillation is a method of separating mixtures based on differences in their volatilities in a boiling liquid mixture. Distillation is a unit operation, or a physical separation process, and not a chemical reaction. It is used to separate crude oil into more fractions for specific uses such as transport, power generation and heating.  IEEE841, hazardous location.,AP1547- Used for the feed pumps, compressors associated with the distillating tower and condenser.  WATER TREATMENT:  IEEE841, VHS,AP1547- Designed for use on propeller pumps and other continuous-duty, and centrifugal loads.  REFORMER:  Catalytic reforming is a chemical process used to convert petroleum refinery naphthas, typically having low octane ratings, into high-octane liquid products



called reformates which are components of high-octane gasoline (also known as petrol). IEEE841, hazardous location.,AP1547- to pump the liquid feed and pressurize it.

 COKER:  A coker or coker unit is an oil refinery processing unit that converts the residual oil from the vacuum distillation column or the atmospheric distillation column into low molecular weight hydrocarbon gases, naphtha, light and heavy gas oils, and petroleum coke. The process thermally cracks the long chain hydrocarbon molecules in the residual oil feed into shorter chain molecules.  IEEE841, hazardous location.,AP1547 - to pump water to the decoking derricks and condensers.  SULFUR RECOVERY:  The desulfurizing process, recovers elemental sulfur from gaseous hydrogen sulfide.  Corro duty, IEEE841, hazardous location are the motors used in this unit.  COOLING FACILITY:  Cooling is the transfer of thermal energy via thermal radiation, heat conduction or convection.  Corro duty, IEEE841- To drive the ID and FD fans.  ALKYLATION UNIT:  In a standard oil refinery process, isobutane is alkylated with low-molecularweight alkenes (primarily a mixture of propylene and butylene) in the presence of a strong acid catalyst, either sulfuric acid or hydrofluoric acid. In an oil refinery it is referred to as a sulfuric acid alkylation unit (SAAU) or a hydrofluoric alkylation unit, (HFAU). The product is called alkylate and is composed of a mixture of highoctane, branched-chain paraffinic hydrocarbons (mostly isopentane and isooctane). Alkylate is a premium gasoline blending stock because it has exceptional antiknock properties and is clean burning.  Corro duty, IEEE841, AP1547- to pump the products through the polymerization unit.  HYDROGEN UNIT:  The function of hydrogen unit is the purification of the hydrocarbon stream from sulfur and nitrogen hetero-atoms.  The products of this process are saturated hydrocarbons; depending on the reaction conditions (temperature, pressure, catalyst activity) these products range from ethane, LPG to heavier hydrocarbons comprising mostly of isoparaffins.  AP1547, IEEE841, hazardous location- to pump the products through the hydrogenation chamber. The motors described above are the products of Emerson Motor Technologies. The details of these motors are described below.

Description: General Purpose Three Phase, Totally Enclosed Fan Cooled (TEFC) CORRO-DUTY® Premium Efficient Motors Product Features: Class F Insulation, Class B Rise At Full Load All Cast iron construction (steel frame & fan cover on 140 frame) Corrosion resistant mill & chemical duty paint Stainless steel nameplate (with CE Mark) & zinc plated hardware Shaft slinger on pulley end for IP54 protection Precision balance (< 0.08 in/sec vibration) 40C Ambient, NEMA Regreasable bearings 180 frame & up, lifting provisions 180 frame & up Double shielded bearings 140-360, open on 400-440 Oversized conduit box - 1 size larger than NEMA standard Cast iron inner bearing cap (180 frame & larger) Field convertible to F2 mounting 180 frame & larger Condensation drains with plastic plugs Conversion kits: C&D Flanges, Canopy Kits (except 320-360) Applications: Designed for severe duty environments found in the process industries.

Description: General Purpose, Three Phase, Totally Enclosed Fan Cooled (TEFC), 841 Plus® Premium Efficient Product Features: Inverter Grade Insulation System(Meets NEMA MG-1 Part 31) Class F Insulation, Class B Rise At Full Load (Sine Wave Power) All cast iron construction (Steel mounting base on 140 frame) Corrosion Resistant Mill & Chem Duty Paint (250 hour Salt Spray Test) Stainless Steel Nameplate (with CE Mark) & Zinc Plated hardware 40C Ambient, NEMA Design B Performance (Sine Wave Power) VBXX® Bearing Isolators by Inpro/Seal on both ends for IP55 Protection Same size regreasable open bearings, brass breathers/drains External grounding provision, epoxy coated rotor 10:1 Variable torque; 5:1 constant torque on inverter power Precision Balance (<0.05 in/sec vibration) 1.15 SF on Sine Wave / 1.0 SF on Inverter Power Internal bearing caps 180 Frame & Up Conversion Kits: C&D Flange, Canopy Kit (except 320-360)

Applications: Designed for constant speed and inverter duty applications in petrochemical industries.

Description: General Purpose Three Phase, TEFC Explosionproof Standard & Energy Efficient Single Label, CORRO-DUTY® Product Features: All cast iron construction (140 frame has steel base) Corrosion resistant mill & chemical duty paint Stainless steel nameplate & zinc plated hardware Shaft slinger on pulley end for IP54 protection Cast iron inner bearing caps (180 frame & larger) 40C Ambient, NEMA design B performance (4) Regreasable bearings 180 frame & up, lifting provisions 180 frame & up Sealed bearings 56-140, shielded 180-360, open 400-440 frames Brass breather plug Suitable for inverter use per policy statement in introduction, 2:1 CT Class 1 (Group D), T2B Temperature Code 1.15 Service Factor On 60 Hertz Sinewave Power Note (4): On 60 Hertz Sine Wave Power Applications: Designed for pumps, fans, compressors, conveyors, and tools located in hazardous locations as defined by Class and Group.

Emerson designed its Oil and Gas vertical motors for reliable outdoor use in all types of weather on pipelines, onshore and offshore wells as well as in refineries and other process industries. These motors are meticulously designed and built to the highest quality standards utilizing premium materials to ensure reliability and long life. EMERSON® Oil and Gas vertical motors are ideal for use on sine wave or inverter power applications such as booster, transfer, secondary recovery supply, secondary recovery injection, sump, slurry, fire and cooling tower pumps.

Description: Vertical A.C. Motors Hollow Shaft High & Low Thrust WPI, WPII, TEFC & Explosionproof Enclosures Product Features: Class F Insulation, Class B Rise At Full Load (Sine Wave Power)

1.15 Service Factor (Sine Wave Power)(typical) – for WPI & WPII enclosures 1.00 Service Factor (Sine Wave Power) – for TEFC & Explosionproof enclosures Maximum 40°C Ambient, 3,300 Feet Altitude NEMA®† Design “B” · 3 Phase 60 Hz NRR = Non-Reverse Ratchet SRC = Self Release Coupling Applications: Designed for use on turbine, mix flow, and propeller pumps WPI enclosures are constructed to minimize the entrance of rain, snow and airborne contaminants found in outdoor applications while providing optimal cooling to the thrust bearing and electrical components. WPII enclosures are constructed for hostile outdoor atmospheres. The WPII ventilation circuit is arranged with a minimum of three abrupt changes in airflow direction of at least 90° each. This results in an area of reduced velocity in the air intake that provides protection against high velocity air, moisture and airborne particles reaching the cooling passages of the motor. Emerson has approved its vertical WPII motors for use in customer-defined Division 2 environments per the requirements of NEC article 500 and NFPA-70. TEFC enclosures prevent the free exchange of air between the outside and inside of the motor, but are not airtight. Each TEFC motor is cooled by a fan that is within the machine, but external to the enclosing parts. Emerson has approved its vertical TEFC motors for use in customer-defined Division 2 environments per the requirements of NEC article 500 and NFPA-70. EMERSON® vertical TEFC motors are available up to 700 hp. Explosionproof enclosures are built to contain explosions inside the motor casing as well as to prevent ignition outside the motor by containing sparks, flashing and explosions. EMERSON® vertical Hazardous Location motors are UL®† Recognized and CSA®† Certified to meet UL Class 1 Group D. EMERSON® vertical Hazardous Location motors are available up to 700 hp.

Description: Vertical A.C. Motors Solid Shaft High & Low Thrust WPI, WPII, TEFC & Explosionproof Enclosures Product Features: Class F Insulation, Class B Rise At Full Load (Sine Wave Power) 1.15 Service Factor (Sine Wave Power)(typical) – for WPI & WPII enclosures 1.00 Service Factor (Sine Wave Power) – for TEFC

Maximum 40°C Ambient, 3,300 Feet Altitude NEMA®† Design “B” · 3 Phase 60 Hz

& Explosionproof enclosures

NRR = Non-Reverse Ratchet

Applications: Designed for use on turbine, mix flow, and propeller pumps

Description: Vertical A.C. Motors Solid Shaft Medium Thrust TEFC & Explosionproof Enclosures Product Features: Class F Insulation, Class B Rise at Full Load (Sine Wave Power) 1.00 Service Factor (Sine Wave Power) Maximum 40°C Ambient, 3,300 Feet Altitud NEMA® Design “B” 3 Phase 60 Hz Applications:

Designed for use on booster pumps

Emerson TITAN® horizontal motors are industrial workhorses. From clean indoor environments to wet, corrosive, contaminated outdoor environments, there is a TITAN® motor to fit your needs in WPI, WPII & TEFC enclosures and API 547.

Description: Emerson has the first motors specifically designed to the rigorous API®† 547 Standard for severe-duty horizontal motors and the shortest delivery time available. Product Features: Fully meets the stringent API 547 electrical and mechanical requirements that build in quality, reliability and longevity; 250-700 horsepower; totally enclosed fan cooled enclosures; sleeve or anti-friction bearings. Applications: These motors are designed for use on direct-coupled, continuous-duty, and centrifugal loads such as pumps, compressors, fans and blowers. API 547 standard motors are also suitable for use in Division 2 locations.

Description: TITAN® General Purpose Three Phase, Totally Enclosed Fan Cooled (TEFC) CORRO-DUTY® Premium Efficient Motors Product Features: Class F Insulation, Class B Rise At Full Load (4) Cast Iron Frame & End Shields Corrosion Resistant Mill & Chemical Duty Paint Stainless Steel Nameplate & Zinc Plated Hardware Insulife 5000 Insulation Treatment (2 Cycles Epoxy VPI) Thermostats - One Per Phase 40°C Ambient, NEMA Design B Performance (4) Regreasable Ball Bearings Long Barrel, 2 Hole Compression Lugs Oversized Fabricated Steel Main Conduit Box Single Phase 115V Space Heaters w/Accessory Conduit Box Rotor Assembly Painted With Polyester Paint To Resist Corrosion Stainless Steel Breather/Drains Form Wound All Copper Windings Note (4): On 60 Hertz Sine Wave Power Applications: Designed for pulp & paper, mill & chemical and any other severe duty environments found in the process industries.

Description: General Purpose Three Phase TITAN® II WPI Ball Bearing 2300/4000 Volt Motors Product Features: Cast Iron & Fabricated Steel Construction Insulife 5000 Insulation Treatment (2 Cycles Epoxy VPI) Class F Insulation, 40°C Ambient F1 Assembly Position (Extra Long Leads For F2 Factory Conversion) Same Size 6200 or 6300 Series Ball Bearings Qty-2 Accessory Conduit Boxes With Terminal Strips 3400 Cubic Inch Main conduit Box With Drip Lid Single Phase 115V Space Heaters Provisions For Bearing RTD’s, Dowel Pins & Vertical Jack Screws Dual Stator RTD’s – 100 Ohm & 120 Ohm Form Wound All Copper Windings

Applications: Designed for compressors, fans, blowers, pumps, and indoor or relatively clean outdoor installations.

Description: General Purpose Three Phase TITAN® II WPII Ball Bearing 2300/4000 Volt Motors Product Features: Cast Iron & Fabricated Steel Construction Insulife 5000 Insulation Treatment (2 Cycles Epoxy VPI) Class F Insulation, 40°C Ambient F1 Assembly Position (Extra Long Leads For F2 Factory Conversion) Same Size 6200 or 6300 Series Ball Bearings Qty-2 Accessory Conduit Boxes With Terminal Strips 3400 Cubic Inch Main conduit Box With Drip Lid Single Phase 115V Space Heaters Provisions For Bearing RTD’s, Dowel Pins & Vertical Jack Screws Dual Stator RTD’s – 100 Ohm & 120 Ohm Provisions For Air Filters & Air Pressure Differential Switch Form Wound All Copper Windings Applications: Designed for compressors, fans, blowers, and pumps in wet corrosive and contaminated environments found in heavy industries such as pulp & paper, mining, petro-chemical, and municipal installations

Because petro-chemical companies cannot tolerate any unplanned outages, they depend on ultra-reliable motors to run their processes. This dependence has led to the following motor standards that cover squirrel cage AC induction motors:

Description: Three Phase Modifiable Motors - Vertical Solid Shaft – “P” Base American Petroleum Institute (API) 610 Specification. Product Features: These motors meet the API 610 tolerances required for the driver shaft & base. Applications: Commonly used for centrifugal pumps, turbines and mix flow on pipelines as well as off-shore and on-shore rigs.

Description: VARIDYNE® 2 variable speed drives is a new, rugged, yet simple to setup, range of Sensorless Vector Drives developed by Emerson Motor Technologies. Product Features: Open Loop Vector Control - Speed or Torque Switching Frequency range: 3kHz - 18kHz -quiet motor operation Built-in EMC filter Output Frequency: 0-1500 Hz Easy Setup - all parameters for basic usage on front panel Program just ten parameters for 80% of applications RS485, Modbus-RTU comm. port standard (RJ45 connector) 8 Preset Speeds Dynamic Braking Transistor standard Fan and Pump optimization with quadratic motor flux V/Hz Wide range of options for easy system integration: Communication modules, LogicStick for small PLC functionality, I/O options, SmartStick for configuration cloning, and much more Free configuration software on CD with each driveQuick installation with convenient cable management Applications: Ideal for Pumps, Blowers, Conveyors, Mixers, and much more.

Energy Efficiency Improvement and Cost Saving Opportunities for Petroleum Refineries

Contents 1.

Introduction

2.

Energy Management and Control

3.

Energy Recovery

4.

Steam Generation and Distribution

5.

Heat Exchangers and Process Integration

6.

Process Heaters

7.

Distillation

8.

Hydrogen Management and Recovery

9.

Equipments

10.

Summary and Conclusions

1.

Introduction

Uncertain energy prices in today’s marketplace negatively affect predictable earnings, which are a concern, particularly for the publicly traded companies in the petroleum industry. Improving energy efficiency reduces the bottom line of any refinery. For public and private companies alike, increasing energy prices are driving up costs and decreasing their value added. Successful, cost-effective investment into energy efficiency technologies and practices meets the challenge of maintaining the output of a high quality product while reducing production costs. This is especially important, as energy efficient technologies often include “additional” benefits , such as increasing the productivity of the company. Energy use is also a major source of emissions in the refinery industry, making energy efficiency improvement an attractive opportunity to reduce emissions and operating costs. Energy efficiency should be an important component of a company’s environmental strategy. End-of-pipe solutions can be expensive and inefficient while energy efficiency can be an inexpensive opportunity to reduce criteria and other pollutant emissions. Energy efficiency can be an efficient and effective strategy to work towards the so-called “triple bottom line” that focuses on the social, economic, and environmental aspects of a business. In short, energy efficiency investment is sound business strategy in today's manufacturing environment. 2.

Energy Management and Control

Improving energy efficiency in refineries should be approached from several directions. A strong, corporate-wide energy management program is essential. Cross-cutting equipment and technologies, such as boilers, compressors, and pumps, common to most plants and manufacturing industries including petroleum refining, present well-documented opportunities for improvement. Equally important, the production process can be fine-tuned to produce additional savings.

2.1

Energy Consumption

Energy use in a refinery varies over time due to changes in the type of crude processed, the product mix (and complexity of refinery), as well as the sulfur content of the final products. Furthermore, operational factors like capacity utilization, maintenance practices, as well as the age of the equipment affect energy use in a refinery from year to year. The petroleum refining industry is an energy intensive industry spending over $7 billion on energy purchases in 2001. Figure 8 depicts the trend in energy expenditures of the U.S. petroleum refining industry. The graph shows a steady increase in total expenditures for purchased electricity and fuels, which is especially evident in the most recent years for which data is available. Valu e added as share of value of shipments dipped in the early 1990s and has increased since to about 20%. Figure 8 also shows a steady increase in fuel costs. Electricity costs are more or less stable, which seems to be only partially caused by increased cogeneration. The main fuels used in the refinery are refinery gas, natural gas, and coke. The refinery gas and coke are by-products of the different processes. The coke is mainly produced in the crackers, while the refinery gas is the lightest fraction from the distillation and cracking processes. Natural gas and electricity represents the largest purchased fuels in the refineries. Natural gas is used for the production of hydrogen, fuel for co-generation of heat and pow er (CHP), and as supplementary fuel in furnaces. Petroleum refineries are one of the largest co generators in the country, after the pulp and paper and chemical industries. In 1998, cogeneration within the refining industry represented almost 13% of all industrial cogenerated electricity. A number of key processes are the major energy consumers in a typical refinery, i.e., crude distillation, hydrotreating, reforming, vacuum distillation, and catalytic cracking. Hydrocracking and hydrogen production are growing energy consumers in the refining industry. An energy balance for refineries has been developed based on publicly available data on process throughput and energy consumption Data. The major energy consuming processes are crud e distillation, followed by the hydrotreater, reforming, and vacuum distillation. This is followed by a number of processes consuming a somewhat similar amount of energy, i.e., thermal cracking, catalytic cracking, hydrocracking, alkylate and isomer production. In cracking the severity and in hydrotreating the treated feed may affect energy use. An average severity is assumed for both factors. Furthermore, energy intensity assumptions are based on a variety of sources, and balanced on the basis of available data. The different literature sources provide varying assumptions for some processes, especially for electricity consumption. Although the vast majority of greenhouse gas (GHG) emissions in the petroleum fuel cycle occur at the final consumer of the petroleum products, refineries are still a substantial source of GHG emissions. The high energy consumption in refineries also leads to substantial GHG emissions. This Energy Guide focuses on CO2 emissions due to the combustion of fossil fuels, although process emissions of methane and other GHGs may occur at refineries. The estimate in this Energy Guide is based on the fuel consumption as reported in the Petroleum Supply Annual of the Energy Information. 2.2

Energy Efficiency Opportunities

A large variety of opportunities exist within petroleum refineries to reduce energy consumption while maintaining or enhancing the productivity of the plant. Studies by several companies in the petroleum refining and petrochemical industries have demonstrated the existence of a substantial potential for energy efficiency improvement in almost all facilities. Competitive benchmarking data indicate that most petroleum refineries can economically improve energy efficiency by 10- 20%. The potential for savings amounts to annual costs savings of millions to tens of millions of dollars for a refinery, depending on current efficiency and size. Improved energy efficiency may result in co-benefits that far outweigh the energy cost savings, and may lead to an absolute reduction in emissions. Major areas for energy efficiency improvement are utilities (30%), fired heaters (20%), process optimization (15%), heat exchangers (15%), motor and motor applications (10%), and other areas (10%). Of these areas, optimization of utilities, heat exchangers, and fired heaters offer the most low investment opportunities, while other opportunities may require higher investments. Experiences of various oil companies have shown that most investments are relatively modest. However, all projects

require operating costs as well as engineering resources to develop and implement the project. Every refinery and plant will be different. The most favorable selection of energy efficiency opportunities should be made on a plant-specific basis. In the following chapters energy efficiency opportunities are classified based on technology area. In each technology area, technology opportunities and specific applications by process are discussed. In addition to the strong focus on operation and maintenance of existing equipment, these practices also address energy efficiency in the design of new facilities. For individual refineries, actual payback period and energy savings for the measures will vary, depending on plant configuration and size, plant location, and plant operating characteristics. Although technological changes in equipment conserve energy, changes in staff behavior and attitude can have a great impact. Staff should be trained in both skills and the company’s general approach to energy efficiency in their day-to-day practices. Personnel at all levels should be aware of energy use and objectives for energy efficiency improvement. Often this information is acquired by lower level managers but not passed to upper management or down to staff (Caffal, 1995). Though changes in staff behavior, such as switching off lights or improving operating guidelines, often save only very small amounts of energy at one time, taken continuously over longer periods they can have a great effect. 2.3

Energy Management Systems (EMS) and Programs

Changing how energy is managed by implementing an organization- wide energy management program is one of the most successful and cost-effective ways to bring about energy efficiency improvements. An energy management program creates a foundation for improvement and provides guidance for managing energy throughout an organization. In companies without a clear program in place, opportunities for improvement may be unknown or may not be promoted or implemented because of organizational barriers. These barriers may include a lack of communication among plants, a poor understanding of how to create support for an energy efficiency project, limited finances, poor accountability for measures, or perceived change from the status quo. Even when energy is a significant cost for an industry, many companies still lack a strong commitment to improve energy management. A successful program in energy management begins with a strong commitment to continuous improvement of energy efficiency. This typically involves assigning oversight and management duties to an energy director, establishing an energy policy, and creating a cross-functional energy team. Steps and procedures are then put in place to assess performance, through regular reviews of energy data, technical assessments, and benchmarking. From this assessment, an organization is then able to develop a baseline of performance and set goals for improvement. Performance goals help to shape the development and implementation of an action plan. An important aspect for ensuring the successes of the action plan is involving personnel throughout the organization. Personnel at all levels should be aware of energy use and goals for efficiency. Staff should be trained in both skills and general approaches to energy efficiency in day-to-day practices. In addition, performance results should be regularly evaluated and communicated to all personnel, recognizing high performers. Evaluating performance involves the regular review of both energy use data and the activities carried out as part of the action plan. Information gathered during the formal review process helps in setting new performance goals and action plans and in revealing best practices. Establishing a strong communications program and seeking recognition for accomplishments are also critical steps. Strong communication and recognition help to build support and momentum for future activities. 2.4

Monitoring & Process Control Systems

The use of energy monitoring and process control systems can play an important role in energy management and in reducing energy use. These may include sub-metering, monitoring and control systems. They can reduce the time required to perform complex tasks, often improve product and data quality and consistency, and optimize process operations. Typically, energy and cost savings are around 5% or more for many industrial applications of process control systems. These savings apply to plants without updated process control systems; many refineries may already have modern process control systems in place to improve energy efficiency.

Although energy management systems are already widely disseminated in various industrial sectors, the performance of the systems can still be improved, reducing costs and increasing energy savings further. For example, total site energy monitoring and management systems can increase the exchange of energy streams between plants on one site. Traditionally, only one process or a limited number of energy streams were monitored and managed. Various suppliers provide site-utility control systems. Specific energy savings and payback periods for overall adoption of an energy monitoring system vary greatly from plant to plant and company to company. A variety of process control systems are available for virtually any industrial process. A wide body of literature is available assessing control systems in most industrial sectors such as chemicals and petroleum refining. Table 5 provides an overview of classes of process control systems. Modern control systems are often not solely designed for energy efficiency, but rather for improving productivity, product quality, and the efficiency of a production line. Applications of advanced control and energy management systems are in varying development stages and can be found in all industrial sectors. Control systems result in reduced downtime, reduced maintenance costs, reduced processing time, and increased resource and energy efficiency, as well as improved emissions control. Many modern energy efficient technologies depend heavily on precise control of process variables, and applications of process control systems are growing rapidly. Modern process control systems exist for virtually any industrial process. Still, large potentials exist to implement control systems and more modern systems enter the market continuously. Hydrocarbon Processing produces a semi-annual overview of new a dvanced process control technologies for the oil refining industry. Process control systems depend on information from many stages of the processes. A separate but related and important area is the development of sensors that are inexpensive to install, reliable, and analyze in real-time. Current development efforts are aimed at the use of optical, ultrasonic, acoustic, and microwave systems, that should be resistant to aggressive environments (e.g., oxidizing environments in furnace or chemicals in chemical processes) and withstand high temperatures. The information of the sensors is used in control systems to adapt the process conditions, based on mathematical (“rule”-based) or neural networks and “fuzzy logic” models of the industrial process. Neural network based control systems have successfully been used in the cement (kilns), food (baking), non-ferrous metals (alumina, zinc ), pulp and paper (paper stock, lime kiln), petroleum refineries (process, site), and steel industries (electric arc furnaces, rolling mills). New energy management systems that use artificial intelligence, fuzzy logic (neural network), or rule-based systems mimic the “best” controller, using monitoring data and learning from previous experiences. Process knowledge based systems (KBS) have been used in design and diagnostics, but are hardly used in industrial processes. Knowledge bases systems incorporate scientific and process information applying a reasoning process and rules in the management strategy. A recent demonstration project in a sugar beet mill in the UK using model based predictive control system demonstrated a 1.2 percent reduction in energy costs, while increasing product yield by almost one percent and reducing off-spec product from 11 percent to four percent. Although energy management systems are already widely disseminated in various industrial sectors, the performance of the systems can still be improved, reducing costs and increasing energy savings further. Research for advanced sensors and controls is ongoing in all sectors, both funded with public funds and private research. Sensors and control techniques are identified as key technologies in various development areas including energy efficiency, mild processing technology, environmental performance and inspection, and containment boundary integrity. Future steps include further development of new sensors and control systems, demonstration in commercial scale, and dissemination of the benefits of control systems in a wide variety of industrial applications. Process control systems are available for virtually all processes in the refinery, as well as for management of refinery fuel gas, hydrogen, and total site control. An overview of commercially offered products is produced by the journal Hydrocarbon Processing. Below examples of processes and site-wide process control systems are discussed, selected on the basis of available case studies to demonstrate the specific applications and achieved energy savings. Refinery Wide Optimization: Total site energy monitoring and management systems can increase the exchange of energy streams between plants on one site. Traditionally, only one plant or a limited number of energy streams were monitored and managed. Various suppliers provide site-utility control systems. The optimization system includes the cogeneration unit, FCC power recovery, and optimum load allocation of boilers, as well as selection of steam turbines or electric motors to run compressors.

CDU: A few companies supply control equipm ent for CDUs. Aspen technology has supplied over 70 control applications for CDUs and 10 optimization systems for CDUs. FCC: Several companies offer FCC control systems, including ABB Simcon, AspenTech, Honeywell, Invensys, and Yokoga wa. Cost savings may vary between $0.02 to $0.40/bbl of feed with paybacks between 6 and 18 months. Hydrotreater: Installation of a multivariable predictive control (MPC) system was demonstrated on a hydrotreater at a SASOL re finery in South Africa. The MPC aimed to improve the product yield while minimizing the utility costs. The implementation of the system led to improved yield of gasoline and diesel, reduction of flaring, and a 12% reduction in hydrogen consumption and an 18% re duction in fuel consumption of the heater (Taylor et al., 2000). Fuel consumption for the reboiler increased to improve throughput of the unit. With a payback period of 2 months, the project result ed in improved yield and in direct and indirect (i.e., reduced hydrogen consumption) energy efficiency improvements. Alkylation: Motiva’s Convent (Louisian a) refinery implemented an advanced control system for their 100,000 bpd sulfuric acid alkyla tion plant. The system aims to increase product yield (by approximately 1%), reduce electricity consumption by 4.4%, reduce steam use by 2.2%, reduce cooling water use by 4.9%, and reduce chemicals consumption by 5-6% (caustic soda by 5.1%, sulfuric acid by 6.4%). The software package integrates information from chemical reactor analysis, pinch analysis, information on flows,and information on energy use and emissions to optimize efficient operation of the plant. No economic performance data was provided, but the payback is expected to be rapid as only additional computer equipment and software had to be installed. 3.

Energy Recovery

3.1

Flare Gas Recovery:

Flare gas recovery (or zero flaring) is a strategy evolving from the need to improve environmental performance. Conventional flaring practice has been to operate at some flow greater than the manufacturer’s minimum flow rate to avoid damage to the flare. Typically, flared gas consists of background flaring (including planned intermittent and planned continuous flaring) and ups etblowdown flaring. In offshore flaring, background flaring can be as much as 50% of all flared gases (Miles, 2001). In refineries, background flaring will generally be less than 50%, depending on practices in the individual refinery. Emissions can be further reduced by improved process control equipment and new flaring technology. Development of gas- recovery systems, development of new ignition systems with low-pilot-gas consumption, or elimination of pilots altogether with the use of new ballistic ignition systems can reduce the amount of flared gas considerably. Development and demonstration of new ignition systems without a pilot may result in increased energy efficiency and reduced emissions. Reduction of flaring can be achieved by improved recovery systems, including installing recovery compressors and collection and storage tanks. This technology is commercially available. The refinery will install new recovery compressors and storage tanks to reduce flaring. No specific costs were available for the flare gas recovery project, as it is part of a large package of measures for the refinery. The overall project has projected annual savings of $52 million and a payback period of 2 years. 3.2

Power Recovery:

Various processes run at elevat ed pressures, enabling the opportunity for power recovery from the pressure in the flue gas. The major application for power recovery in the petroleum refinery is the fluid catalytic cracker (FCC). However, power recovery can also be applied to hydrocrackers or other equipment operated at elevated pressures. Modern FCC designs use a power recovery turbine or turbo expander to recover energy from the pressure. The recovered energy can be used to drive the FCC compressor or to generate power. Power recovery applications for FCC are characterized by high volumes of high temperature gases at relatively low pressures, while operating continuously over long periods of time between maintenance stops (> 32,000 hours). There is wide and long-term experience with power recovery turbines for FCC applications. Power recovery turbines can also be applied at hydrocrackers. Power can be recovered from the pressure difference between the reactor and fractionation stages of the process.

4.

Steam Generation and Distribution

Steam is used throughout the refinery. An estimated 30% of all onsite energy use in U.S. refineries is used in the form of steam. Steam can be generated through waste heat recovery from processes, cogeneration, and boilers. In mo st refineries, steam will be generated by all three sources, while some (smaller) refine ries may not have cogeneration equipment installed. While the exact size and use of a modern steam systems varies greatly, there is an overall pattern that steam systems follow. The refining industry uses steam for a wide variety of purposes, the most important being process heating, drying or concentrating, steam cracking, and distillation. Whatever the use or the source of the steam, efficiency improvements in steam generation, distribution and end-use are possible. It is estimated that steam generation, distribution, and cogeneration offer the most cost-effective energy efficiency opportunities on the short term. This section focuses on the steam generation in boilers (including waste heat boilers) and distribution. 4.1

Boilers

Boiler Feed Water Preparation: Depending on the quality of incoming water, the boiler feed water (BFW) needs to be pre-treated to a varying degree. Various technologies may be used to clean the water. A new technology is based on the use of membranes. In reverse osmosis (RO), the pre-filtered water is pressed at increased pressure through a semi-permeable membrane. Reverse osmosis and other membrane technologies are used more and more in water treatment (Marti n et al., 2000). Membrane processes are very reliable, but need semi-annual cleaning and periodic re placement to maintain performance. Improved Process Control: Flue gas monitors are used to maintain optimum flame temperature, and to monitor CO, oxygen and smoke. The oxygen content of the exhaust gas is a combination of excess air (which is deliberately introduced to improve safety or reduce emissions) and air infiltration (air leaking into the boiler). By combining an oxygen monitor with an intake airflow monitor, it is possible to detect (small) leaks. Using a combination of CO and oxygen readings, it is possible to optimize the fuel/air mixture for high flame temperature (and thus the best energy efficiency) and low emissions. Reduce Flue Gas Quantities: Often, excessive flue gas results from leaks in the boiler and the flue, reducing the heat transferred to the steam, and increasing pumping requirements. These leaks are often easily repaired. The savings from this measure and from flue gas monitoring are not cumulative, as they both address the same losses. Reduce Excess Air. The more air is used to burn the fuel, the more heat is wasted in heating air. Air slightly in excess of the ideal stoichometric fuel/air ratio is required for safety, and to reduce NOx emissions, and is dependent on the type of fuel. Improve Insulation: New materials insulate better, and have a lower heat capacity. Savings of 6-26% can be achieved if this improved in sulation is combined with improved heater circuit controls. This improved control is required to maintain the output temperature range of the old firebrick system. As a result of the ceramic fiber’s lower heat capacity, the output temperature is more vulnerable to temperature fluctuations in the heating elements. The shell losses of a well-maintain ed boiler should be less than 1%. Maintenance: A simple maintenance program to ensure that all components of the boiler are operating at peak performance can result in substantial savings. In the absence of a good maintenance system, the burners and condensate return systems can wear or get out of adjustment. These factors can end up costing a steam system up to 20-30% of initial efficiency over 2-3 years. On average, the possible energy savings are estimated at 10%. Improved maintenance may also reduce the emission of criteria air pollutants. Recover Heat From Flue Gas: Heat from flue gasses can be used to preheat boiler feed water in an economizer. While this measure is fairly common in large boilers, there is often still potential for more heat recovery. The limiting factor for flue gas heat recovery is the economizer wall temperature that should not drop below the dew point of acids in the flue 38 gas. Traditionally this is done by keeping the flue gases at a temperature significantly above the acid dew point. However, the economizer wall temperature is more dependent on the feed water temperature than flue gas temperature because of the high heat transfer coefficient of water. As a result, it makes more sense to preheat the feed water to close to the acid dew point before it enters the economizer. This allows the economizer to be designed so that the flue gas exiting the economizer is just barely above the acid dew point. One percent of fuel use is saved for every 25 °C reduction in exhaust gas temperature.

Recover Steam From Blowdown: When the water is blown from the high-pressure boiler tank, the pressure reduction often produces substantial amounts of steam. This steam is low grade, but can be used for space heating and feed water preheating. For larger high-pressure boilers, the losses may be less than 0.5%. It is estimated that this measure can save 1.3% of boiler fuel use for all boilers below 100 MMBtu/h r (approximately 5% of all boiler capacity in refineries). Reduce Standby Losses: In refineries often one or more boilers are kept on standby in case of failure of the operating boiler. The steam production at standby can be reduced to virtually zero by modifying the burner, combustion air supply and boiler feedwater supply. By installing an automatic control system the boiler can reach full capacity within 12 minutes. Installing the control system and modifying the boiler can result in energy savings up to 85% of the standby boiler, depending on the use pattern of the boiler. 4.2

Steam Distribution

When designing new steam distribution systems, it is very important to take into account the velocity and pressure drop. This reduces the risk of oversizing a steam pipe, which is not only a cost issue but would also lead to higher heat losses. A pipe too small may lead to erosion and increased pressure drop. Installations and steam demands change over time, which may lead to under-utilization of steam distribution capacity utilization, and extra heat loss es. However, it may be too ex pensive to optimize the system for changed steam demands. Still, checking for excess distribution lines and shutting off those lines is a cost-effective way to reduce steam distribution losses. Improve Insulation: This measure can be to use more insulating material, or to make a careful analysis of the proper insulation material. Crucial factors in choosing insulating material include: low thermal conductivity, dime nsional stability under temperature change, resistance to water absorption, and resistance to combustion. Other characteristics of insulating material may also be important depending on the application, e.g., tolerance of large temperature variations and system vibration, and compressive strength where insulation is load bearing. Improving the insulation on the existing stock of heat distribution systems would save an average of 3-13% in all systems. Maintain Insulation: It is often found that after repair s, the insulation is not replaced. In addition, some types of insulation can become brittle, or rot. As a result, energy can be saved by a regular inspection and maintenance system. Exact energy savings and payback periods vary with the specific situation in the plant. Improve Steam Traps: Using modern thermostatic elements, steam traps can reduce energy use while improving reliability. The main advantages offered by these traps are that they open when the temperature is very close to that of the saturated steam (within 2 °C), purge non-condensable gases after each opening, and are open on startup to allow a fast steam system warm-up. These traps are also very reliable, and useable for a wide variety of steam pressures. Energy savings will vary depending on the steam traps installed and state of maintenance. Maintain Steam Traps: A simple program of checking steam traps to ensure that they operate properly can save significant amounts of energy. If the steam traps are not regularly monitored, 1520% of the traps can be malfunctioning. In some plants, as many as 40% of the steam traps were malfunctioning. Energy savings for a regular system of steam trap Monitor Steam Traps Automatically: Attaching automated monitors to steam traps in conjunction with a maintenance program can save even more energy, without significant added cost. This system is an improvement over steam trap maintenance alone, because it gives quicker notice of steam trap malfunctioning or failure. Using automatic monitoring is estimated to save an additional 5% over steam trap maintenance. Repair Leaks:. As with steam traps, the distribution pipes themselves often have leaks that go unnoticed without a program of regular inspection and maintenance. In addition to saving up to 3% of energy costs for steam production, having such a program can reduce the likelihood of having to repair major leaks. Recover Flash Steam: When a steam trap purges condensate from a pressurized steam distribution system to ambient pressure, flash steam is produced. This steam can be used for space heating or feed water preheating. The potential for this measure is extremely site dependent, as it is unlikely that a producer will want to build an entirely new system of pipes to transport this low-grade st eam to places where it can be used, unless it can be used close to the steam traps. Hence, the savings are

strongly site dependent. Many sites will use multi-pressure steam systems. In this case, flash steam formed from high-pressure condensate can be routed to reduced pressure systems. Return Condensate: Reusing the hot condensate in the boiler saves energy and reduces the need for treated boiler feed water. The substantial savings in energy costs and purchased chemicals costs makes building a return piping system attractive. 5.

Heat Exchangers and Process Integration

Heating and cooling are operations found throughout the refinery. Within a single process, multiple streams are heated and cooled multiple times. Optimal use and design of heat exchangers is a key area for energy efficiency improvement. 5.1

Heat Transfer– Fouling

Heat exchangers are used throughout the refinery to recover heat from processes and transfer heat to the process flows. Next to efficient integration of heat flows throughout the refinery, the efficient operation of heat exchangers is a major area of interest. In a complex refinery, most processes occur under high temperature and pressure conditions; the management and optimization of heat transfer among processes is therefore key to increasing overall energy efficiency. Fouling, a deposit buildup in units and piping that impedes heat transfer, requires the combustion of additional fuel. CDU: Fouling is an important factor for efficiency losses in the CDU, and within the CDU, the crude preheater is especially susceptible to fouling. Initial analysis on fouling effects of a 100,000 bbl/day crude distillation unit found an additional heating load of 12.3 kBtu/barrel (13.0 MJ/barrel) processes. Reducing this additional heating load could results in significant energy savings. 5.2

Process Integration

Process integration or pinch technology refers to the exploitation of potential synergies that are inherent in any system that consists of multiple components working together. In plants that have multiple heating and cooling demands, the use of process integration techniques may significantly improve efficiencies. The critical innovation in applying pinch analysis was the development of “composite curves” for heating and cooling, which represent the overall thermal energy demand and availability profiles for the process as a whole. When these two curves are drawn on a temperature-enthalpy graph, they reveal the location of the process pinch (the point of closest temperature approach), and the minimum thermodynamic heating and cooling requirements. These are called the energy targets. The methodology involves first identifying the targets and then following a systematic procedure for designing heat exchanger networks to achieve these targets. The optimum approach temperature at the pinch is determined by balancing the capital-energy tradeoffs to achieve the desired payback. The procedure applies equally well to new designs as well as to retrofits of existing plants. Process Integration - Hot Rundown – Typically process integration studies focus on the integration of steam flows within processes and between processes. Sometimes it is possible to improve the efficiency by retaining the heat in intermediate process flows from one unit to another unit. This reduces the need for cooling or quenching in one unit and reheating in the other unit. Such an integration of two processes can be achieved through automated process controls linking the process flows between both processes. Crude Distillation Unit (CDU): The CDU process all the incoming crude and, hence, is a major energy user in all refinery layouts (except for those refineries that receive intermediates by pipeline from other refineries). CDU is the largest energy consuming process of all refinery processes. Energy use and products of the CDU depend on the type of crude processed. New CDUs are supplied by a number of global companies. 6.

Process Heaters

Over 60% of all fuel used in the refinery is used in furnaces and boilers. The average thermal efficiency of furnaces is estimated at 75-90%. Accounting for unavoidable heat losses and dewpoint considerations, the theoretical maximum efficiency is around 92% (HHV). This suggests that on average a 10% improvement in energy efficiency can be achieved in furnace and burner design.

6.1

Maintenance

Regular maintenance of burners, draft control and heat exchangers is essential to maintain safe and energy efficient operation of a process heater. 6.2

Air Preheating

Air preheating is an efficient way of improving the efficiency and increasing the capacity of a process heater. The flue gases of the furnace are used to preheat the combustion air. Every 35°F drop in the exit flue gas temperature increases the thermal efficiency of the furnace by 1%. Typical fuel savings range between 8 and 18% , and is typically economically attractive if the flue gas temperature is higher than 650°F and the heater size is 50 MMBtu/hr or more. The optimum flue gas temperature is also determined by the sulfur content of the flue gases to reduce corrosion. When adding a preheater, the burner needs to be rerated for optimum efficiency. 6.3

New Burners

In many areas, new air quality regulation w ill demand refineries to reduce NOx and VOC emissions from furnaces and boilers. Instead of installing expensive selective catalytic reduction (SCR) flue gas treatment plants , new burner technology reduces emissions dramatically. This will result in cost savings as well as help to decrease electricity costs for the SCR. 7.

Distillation

Distillation is one of the most energy intensive operations in the petroleum refinery. Distillation is used throughout the refinery to separate process products, either from the CDU/VDU or from conversion processes. The incoming flow is heated, after which the products are separated on the basis of boiling points. Heat is provided by process heaters and/or by steam. Energy efficiency opportunities exist in the heating side and by optimizi ng the distillation column. 8.

Hydrogen Management and Recovery

Hydrogen is used in the refine ry in processes such as hydrocrackers and desulfurization using hydrotreaters. The production of hydrogen is an energy intensive process using naphtha reformers and natural gas-fueled reformers. These processes and other processes also generate gas streams that may contain a certain amount of hydrogen not used in the processes, or generated as by-product of dist illation of conversion processes. 8.1

Hydrogen Integration

Hydrogen network integration and optimization at refineries is a new and important application of pinch analysis (see above). Most hydrogen systems in refineries feature limited integration and pure hydrogen flows are sent from the reformers to the different processes in the refinery. 8.2

Hydrogen Recovery

Hydrogen recovery is an important technology development area to improve the efficiency of hydrogen recovery, reduce the costs of hydrogen recovery, and increase the purity of the resulting hydrogen flow. 9.

Equipments

9.1

Motors

Electric motors are used throughout the refinery, and represent over 80% of all electricity use in the refinery. The major applications are pumps (60% of all motor use), air compressors (15% of all motor use), fans (9%), and other applications. 9.2

Pumps

In the petroleum refining industry, about 59% of all electricity use in motors is for pumps. This equals 48 % of the total electrical energy in refineries, making pumps the single largest electricity user in a refinery. Pumps are used throughout the entire plant to generate a pressure and move liquids. Studies have shown that over 20% of the energy consumed by these systems could be saved through equipment or control system changes.

9.3

Compressors and Compressed Air

Compressors consume about 12% of total electricity use in refineries, or an estimated 5,800 GWh. The major energy users are compressors for furnace combustion air and gas streams in the refinery. Large compressors can be driven by electric motors, steam turbines, or gas turbines. A relatively small part of energy consumption of compressors in refineries is used to generate compressed air. Compressed air is probably the most expensive form of energy available in an industrial plant because of its poor efficiency. Typically, efficiency from start to end-use is around 10% for compressed air systems. In addition, the annual energy cost required to operate compressed air systems is greater than their initial cost. Because of this inefficiency and the sizeable operating costs, if compressed air is used, it should be of minimum quantity for the shortest possible time, constantly monitored and reweighed against alternatives. Because of its limited use in a refinery (but still an inefficient source of energy), the main compressed ai r measures found in other industries are highlighted. Many opportunities to reduce energy in compressed air systems are not prohibitively expensive. 9.4

Fans

Fans are used in boilers, furnaces, cooling towers, and many other applications. As in other motor applications, considerable opportunities exist to upgrade the performance and improve the energy efficiency of fan systems. Efficiencies of fan systems vary considerably across impeller types. However, the cost-effectiveness of energy efficiency opportunities depends strongly on the characteristics of the individual system. 9.5

Lighting

Lighting and other utilities represent less than 3% of electricity use in refineries. Still, potential energy efficiency improvement measures exist, and may contribute to an overall energy management strategy. 9.6

Power Generation

Most refineries have some form of onsite power generation. In fact, refineries offer an excellent opportunity for energy efficient power generation in the form of combined heat and power production (CHP). CHP provides the opportunity to use internally generated fuels for power production, allowing greater independence of grip operation and even export to the grid. This increases reliability of supply as well as the cost-effectiveness. The cost benefits of power export to the grid will depend on the regulation in the state where the refinery is located. Not all states allow wheeling of power (i.e ., sales of power directly to another customer using the grid for transport) while the regulation may also differ with respect to the tariff structure for power sales to the grid operator. 9.7

Other Opportunities

Desalter. Alternative designs for desalting include multi-stage desalters and combination of AC and DC fields. These alternative designs may lead to increased efficiency and lower energy consumption. 10.

Summary and Conclusions

Petroleum refining in the United States is the largest refining industry in the world, providing inputs to virtually any economic sector, including the transport sector and the chemical industry. The industry operates 146 refineries (as of 2004) around the country, employing over 65,000 employees. The refining industry produces a mix of products with a total value exceeding $151 billion. Energy costs represents one the largest production cost factors in the petroleum refining industry, making energy efficiency improvement an important way to reduce costs and increase predictable earnings, especially in times of high energy-price volatility.

Reference: Brief summary of this article is extracted from the website http://repositories.cdlib.org/cgi/viewcontent.cgi?article=3856&context=lbnl

Petrochemical Refineries & Industries Spacechem's capabilities include designing and fabrication of tanks, chimneys, Gratings, Cones and impellers, Side Steam Filters, Air Receivers, Floating Roof Tanks, Pressure Filters, Sand Filter and Pressure Vessel. We have executed fabrication and supply orders for ONGC, IOCL, BPCL and Balmer & Lawrie

Petrochemical Petrochemical Refineries & Industries Refineries & Industries Details Of Equipment Supplied To Various Petrochemical Refineries & Industries Purchaser Name

Project

Equipment Description

1

GRASIM IND. LTD.

Nagdha (M.P.)

S.S. Casted Cone & Impeller

2

UNITECH MACHINES I.O.C.L. Mugal-Sarai LTD.

M.S. Gratings

3

BLUE STAR LTD.

I.O.C.L. Jaipur, Rewari, Bhatinda, Sangrur

M.S. Gratings for Rolling Ladder

4

BLUE STAR LTD.

I.O.C.L. Jaipur, Rewari, Bhatinda, Sangrur

Rolling Ladder for Floating Roof Tank

5

BLUE STAR LTD.

I.O.C.L. Jaipur, Rewari, Bhatinda, Sangrur

Structure for Floating Roof Tank

6

BLUE STAR LTD.

I.O.C.L. Jaipur, Rewari, Bhatinda, Sangrur

M.S. Gratings

7

UNITECH MACHINES Bawana, Bamnauli & LTD. Delhi

8

BLUE STAR LTD.

Numaligarh Refinery Ltd., Stand Post Assam

9

LLOYD INSULATIONS (INDIA) LTD.

I.O.C.L R&D Center, Faridabad

10 UNITECH MACHINES Honda Siel, Noida LTD.

Cylindrical Oil & Storage Tank

Oil Storage Tank

Water Tank With F.R.P. Lining

11 BLUE STAR LTD.

B.P.C.L Marketing Terminal Harayana

12 UNITECH MACHINES Maruti Udyod Ltd., LTD. Gurgaon

Sumps Oil Storage Tanks

13 UNITECH MACHINES Balmer Lawrie, Faridabad M.S. Oil Storage Tanks LTD. 14 BLUE STAR LTD.

I.O.C.L. Panipat Refinery Stand Post

15 BLUE STAR LTD.

Thermal Power Suratgarh M.S. Oil Storage Tanks along Rajasthan with Foundation Bolt

16 BLUE STAR LTD.

O.N.G.C. Mehsana Oil Field,Gujrat

Side Stream Filter & Foundation Bolt

17 ANAND GATE INDIA Lalru, Punjab (P) LTD.

Fab. & Erection of Banbury Platform, Portable Mill Transfer, Back Roll Feed Conveyor

18 BLUE STAR LTD.

I.O.C.L., Panipat

Stand Post

19 ATV PETROCHEM LTD.

Chhata Mathura

26 mtr. High Steel Stacks & Erection at Site

20 ABB LTD.

Embassy of Federal Republic of Germany

Fabrication and Erection of Flag Post

21 IRCON

Robert Ganj, Varanasi

Bitumen Storage Tank

22 MODI RUBBER LTD. Tyre Factory

Tyre Building Machine, Tube Curing Press

23 PACE MARKETING SPECILITIES LTD.

M.S. Tank 15 Kl. Capacity

Sahibabad Industrial Area, Site-IV Ghaziabad

24 TAIKISHA ENGG (I) Honda Motors & Scooter LTD. (I) Pvt Ltd., Gurgaon

Feeder Assembly For Conveyer

25 TAIKISHA ENGG (I) Honda Motors & Scooter LTD. (I) Pvt Ltd., Gurgaon

Detector Parts For Conveyor

26 TAIKISHA ENGG (I) Honda Motors & Scooter LTD. (I) Pvt Ltd., Gurgaon

Fabricated Material for Conveyor

27 I.S.G.E.C. JOHN THOMPSON

Jyoti Bio Energy Ltd., A.P.

Chimney

28 I.S.G.E.C. JOHN THOMPSON

Shree Rayal Seema Green Energy Ltd., A.P.

Chimney

29 I.S.G.E.C. JOHN THOMPSON

Roshni Power Projects Ltd., A.P.

Bunker

30 DEGREMONT INDIA Delhi Jal Board Rithala LTD.

M.S. Thrust

31 DEGREMONT INDIA Delhi Jal Board Rithala LTD.

Jib Crane

32 DEGREMONT INDIA Delhi Jal Board Rithala LTD.

Jib Crane

33 DEGREMONT INDIA Delhi Jal Board Rithala LTD.

Biofor Weir

34 VOLTAS LTD.

Vam Organic & Chemicals Clarifier Bridge Limited, Gajraula

35 VOLTAS LTD.

Sir Shadilal Distillery &Chemical Works Mansoorpur

Clarifier Bridge

36 VOLTAS LTD.

Municipal Corporation, Simla

Clarifier Compound and Flocculator

37 B.R. AGRO CHEMICAL KASHMIPUR

Agro Project Kashipur

Solvent Storage Tank

38 B.R. AGRO CHEMICAL KASHMIPUR

Agro Project Kashipur

Extraction Vessel

39 UNITECH MACHNES Bangalore Water Supply LTD. and Sewerage Board

Air Receiver

40 UNITECH MACHNES Bangalore Water Supply LTD. and Sewerage Board

Pipe Sleeve, Gang Stand Gland Cooling Pipe

41 UNITECH MACHNES Godavari Sugar, LTD. Sameervadi

Hydro Pneumatic Tank & Priming Tank

42 LLOYD INSULATION Moser Baer (I) Ltd., (I) LTD. Noida

100 KL Storage Tank

43 LLOYD INSULATION IOCL L.P.G. Bottling (I) LTD. Plant, Devangonthi, Bangalore

Air Receiver

44 I.S.G.E.C. JOHN THOMPSON

Bunker

Rayal Seema Power Tech. Ltd., A.P.

APPLICATION BULLETIN... Electric Motor Lubrication

Industry - Refining, Petro-Chemical & Pulp-Paper

Case History:

Two U.S. west coast refineries had similar expansion projects at the same time. One plant used pure oil mist to lubricate their motors and the other did not. During 3 1/2 years of operation, motor bearing failure rate was about 90% lower at the plant using oil mist.

LubriMist ® Oil Mist Can Be Cost Effectively Installed on Your Electric Motors And Deliver Significantly Improved Machinery Reliability. The Problem: It has been stated that 60%-80% of electric motor failures are related to bearings. Many times grease is not applied properly to the bearings, which creates added friction and heat that reduces bearing life and consumes energy. Proper Application: Thousands of motors are currently being lubricated with pure oil mist as shown in the above illustration. Horizontal motors with a NEMA 254 frame size (15 HP) and larger with ball bearings that have re-greaseable construction will benefit from pure oil mist. Vertical motors with a NEMA 180 frame size (3 HP) and larger with ball bearings that have re-greaseable construction will benefit from pure oil mist. The one location where oil mist is not applicable is for motors that must meet the requirements of NFPA Class 1 Division 1 (Explosion Proof). Electric motors are normally used as drivers for centrifugal pumps and when pumps are being lubricated from an oil mist system, it can be easily extended to the motors. The same lubricant that lubricates the pumps is compatible with motors. The grease should be removed from the bearings to facilitate flow through of the oil mist. A small amount of the oil mist will enter the interior of the motor after lubricating the bearings; therefore a case drain must be installed in addition to the bearing bracket drains to prevent pooling of the oil. The lubricant is not detrimental to the internal parts of the motor, however the lead wires should be sealed in the terminal box. The Solution: Eliminate the manual task of lubricating motors by automating the process. New motors that are required for pure oil mist shall be ordered “For oil mist lubrication” as supplied by the OEM. Motors that are ordered as “Provisions for oil mist lubrication” will be shipped with the bearings packed with grease that has to be removed prior to connecting to an oil mist system. LSC technicians can extend the existing system to serve the motor bearings or LSC can provide a stand-alone mist system with a set of engineering instructions to allow your technicians to carry out the installation. FOR ADDITIONAL INFORMATION: 1740 Stebbins Drive, Houston, Texas 77043 Phone: 713.464.6266 • 800.800.5823 • Fax: 713.464.9871 Web: www.lsc.com • Click here to contact us at LSC

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7DEOHRI&RQWHQWV 3DJH 1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Challenges on the Horizon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Industry’s Response . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 A Vision for the Future . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 Energy Efficiency and Process Improvement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Current Situation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Future Characteristics: Energy Use and Refining Processes . . . . . . . . . . . . . . . . 7 Performance Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Technical, Institutional and Market Barriers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Research and Development Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 4 Environmental Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Current Situation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Future Characteristics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Performance Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Technical and Institutional Barriers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Research and Development Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16 16 18 19 20 22

5 Inspection and Containment Boundary Integrity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Current Situation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Future Characteristics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Performance Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Technical Barriers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Research and Development Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

25 25 25 26 26 28

6 Fuels & Fuel Delivery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Current Situation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Future Characteristics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Performance Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Technical and Institutional Barriers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Research and Development Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

31 31 31 32 32 33

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

2YHUYLHZ Challenges on the Horizon Petroleum is the single largest source of energy for United States. On average, every citizen in the U.S. consumes about 20 pounds of petroleum per day. Petroleum is critical to the U.S. economy and quality of life, providing fuels for transportation, heating and industrial uses. Petroleum is the primary source of raw materials for the chemical industry, which relies on petrochemicals to produce a myriad of consumer goods, from paints to plastics. In 1996 the refining industry had over 90,000 employees, and nearly 2 million people were employed in service stations. Revenues from refining and refined products represent a significant contribution to the U.S. gross domestic product.

{ { { { { { { {

In the 21st century, the petroleum industry must prepare to address many important challenges. Major forces for change include: continuing concern for the environment; governmental regulation and policy; higher consumer expectations for fuels and fuel delivery systems; and global competition. In many cases, technology research and development will be Key Drivers Affecting the Industry needed to meet these challenges and maintain the Environmental regulations health and profitability of the industry. Increasing cleanliness of fuels Globalization Increasing yields from crudes of decreasing quality Uncertainty about future consumer fuels of choice Pressure to reduce emissions of CO2 Attaining adequate profit margins Proactively dealing with public scrutiny, environment, global warming and other issues

The life-cycle effect of petroleum fuels on the environment continues to be a cause for concern. The industry is unique in that both the processes used to refine petroleum as well as the products generated (e.g., fuels) are subject to government regulation. The combination of regulations to reformulate fuels and reduce emissions from refinery operations make petroleum refining one of the most heavily regulated industries in the United States. As cash flows are diverted to ensure compliance with regulation, the direction of technological development, as well as profitability, is often impacted. Consumers also have a tremendous influence on markets and demand for petroleum products. Increasingly, consumers are demanding fuels that are safe, less polluting, inexpensive, and provide high performance. They also desire means of fuel delivery that are quick, convenient, and environmentally sound. Advances in technology may be needed to ensure fuels as well as fuel delivery systems meet consumer expectations. Global competition and low profit margins have led to joint ventures, mergers, and restructuring throughout the industry. The number of refineries has declined dramatically since the 1980s, with those remaining operating at higher capacity and with greater efficiency. Refineries have had to deal with the economic impacts of changing crude prices, crude quality variability, and low marketing and transport margins, while meeting increased demand for refined products. The industry must continue to find

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ways to balance the demand for better and more products with the desire for increased profitability and capital productivity. Strategically-driven investments in R&D and new technologies represent one way to help drive the industry toward a higher level of financial performance.

Industry Response In preparing to respond to these challenges, the petroleum industry, through the American Petroleum Institute (API) and the National Petrochemical and Refiners Association (NPRA), has developed Technology Vision 2020: A Technology Vision for the U.S. Petroleum Industry [API 1999a]. This technology vision for the industry builds on two National Petroleum Council (NPC) reports published in 1995 [NPC 1995a, NPC 1995b], which discuss future issues for the oil and gas industry, and the research needed to strengthen the industry over the next two decades. Technology Vision 2020 describes the role of the industry in today’s economy, identifies major goals for the future, and outlines broad technology needs. To support some of the pre-competitive R&D needed to meet future industry goals, the vision advocates cooperation among the petroleum industry, the U.S. Department of Energy, the national laboratories, and academia. Government-industry collaboration and effective use of the scientific capabilities of the national laboratory system can leverage scarce funds for research and help to ensure that technology advances are identified and made. The driving force behind the vision is API’s Technology Committee, which is charged with identifying the technical areas of greatest concern to the industry and developing a technology roadmap to address those concerns. In 1999, API took a major step to better define research needs through a technology roadmap workshop held in Chicago, Illinois [API 1999b]. Attendees included participants from six major oil companies, API, and NPRA, along with representatives from the national laboratories, academia, and consulting firms serving the industry. The dialog at this workshop provided insights on the characteristics of the ideal refinery, attainable goals, barriers to overcome, and priority research areas. The results of the workshop, along with Technology Vision 2020, provide the foundation for this technology roadmap. The goals and research priorities outlined in the roadmap will form the basis for making new research investments by government and industry. Hopefully it will stimulate new government-industry partnerships that will further serve to strengthen the industry, while providing benefits to the nation in terms of energy efficiency and environmental performance. The technology roadmap is a dynamic working document for the API Technology Committee. Expectations are that it will be re-evaluated periodically to ensure that research priorities remain relevant to the needs of both the petroleum industry and its customers.

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$9LVLRQIRUWKH)XWXUH By 2020, it is envisioned that the petroleum industry will exhibit a number of desirable characteristics that represent continuous improvements to current practices. These relate to the efficient use of energy as a fuel and feedstock in refining processes, the environmental performance of refineries and fuel delivery systems, and the reliability and safety of plant equipment. The vision of the industry for the future is summarized as follows [API 1999a, API 1999b]: The petroleum industry of the future will be environmentally sound, energy-efficient, safe and simpler to operate. It will be completely automated, operate with minimal inventory, and use processes that are fundamentally well-understood. Over the long term, it will be sustainable, viable, and profitable, with complete synergy between refineries and product consumers. To improve energy and process efficiency, the industry will strive to use cost-effective technology with lower energy-intensity. Refineries will integrate state-of-the-art technology (e.g., separations, catalysts, sensors and controls, biotechnology) to leap-frog current refinery practice and bring efficiency to new levels. The result will be a highly efficient, flexible refinery that can produce a wider range of products from crudes of variable quality as well as non-conventional feedstocks. Refineries will take advantage of deregulation of utilities to improve their ability to generate (or cogenerate) electricity on-site, and potentially sell electricity back to the grid. Overall this will reduce the amount of energy required for process heat and power, and improve profitability. There will be increasing use of less energy-intensive biological processes (e.g., bioprocessing of crude, biotreatment of wastewater, bioremediation of soil and groundwater). Improvements in consumer fuel use efficiency will be driven by regulation, competitive forces and desired performance requirements. Optimization of engines and fuels as a single entity will result in better efficiency in both gasoline and diesel engines. New sources of energy for transportation (e.g., fuel cells for cars) will continue to be developed and implemented. To improve environmental performance, the industry will strive for lower emissions, with no harm to human health or the environment. The

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manufacture, storage, and delivery of fuels will be subject to engineering controls to avoid exposure, and sophisticated sensor technology to immediately detect, avoid, and correct releases to the environment. Emissions from engine exhaust and fuel evaporation will be reduced through a combination of regulation and better science and engineering of vehicles, transport systems, and fuel formulations. A holistic approach, including life-cycle analysis from cradle to grave, will be used to minimize pollution from refining, distribution, retail, and transportation. Environmental rules will hopefully evolve through riskbased, prioritized approaches toward environmental concerns. New structural materials and inspection technology will reduce the cost of maintenance, increase plant safety, and extend the useful life of equipment. Inspection technology will be global, on-stream, noninvasive, and in some cases, operated remotely. Equipment will be highly instrumented to monitor structural integrity, and the industry will have no containment boundary releases that significantly impact safety, health or the environment. In future, the refinery distribution system and retail delivery services will be flexible to handle various feedstocks and a variety of fuels for conventional and emerging alternative-fueled transportation. Service stations will be larger, more convenient and have higher throughput. Fueling processes and underground storage systems will be improved to reduce potential impacts on the environment and human health. For example, automated fuel dispensing systems will enable consumers to obtain fuel quickly and conveniently. With this vision in mind, the industry has come together to outline specific goals and the technology research that will be needed to work toward the objectives described above. The technology roadmap which follows is a summary of those efforts.

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(QHUJ\(IILFLHQF\DQG3URFHVV ,PSURYHPHQW Current Situation Petroleum refining is the most energy-intensive manufacturing industry in the United States. According to the most recent Manufacturing Energy Consumption Survey (MECs) conducted by the U.S. Department of Energy, the U.S. petroleum refining industry consumed 6.3 quads (quadrillion Btu, or 1015 Btu) of energy in 1994 (excluding electricity generating and transmission losses incurred by the generating utility) [DOE 1997]. As shown in Figure 1, the industry uses a diversity of fuel sources, and relies heavily on refining process by-products for energy. These include refinery gas (sometimes referred to as “still” gas, a component of crude oil and product of distillation, cracking and other refinery processes), petroleum coke, and other oil-based byproducts. Typically about 65 percent of the energy consumed by the industry for heat and power is obtained from by-product fuels.

Other 0.4 Quads

Electricity 0.3 Quads

Natural Gas 1.6 Quads Refinery Gas 2.9 Quads Petroleum Coke 1.1 Quads

Total Energy Use: 6.3 Quads (1994)

Refineries use crude oil to manufacture a wide variety of fuels for transportation and heating. They also manufacture a number of non-fuel products, such as lubricating oils, wax, asphalt, and petrochemical feedstocks (e.g., ethylene, propylene). Any energy source (e.g., petroleum, natural gas) that is used to manufacture non-energy products is considered an energy feedstock. Of the 6.3 quadrillion Btus used by refineries in 1994, about 38 percent was in the form of energy feedstocks used to manufacture non-fuel products [DOE 1997].

Petroleum refineries generate a considerable amount of electricity on-site. In 1994, U.S. refineries met over 40 percent of electricity requirements with on-site generation. Nearly all of this electricity was from cogeneration units, which also generate steam for process heating.

Figure 1. Distribution of Energy Use in U.S. Petroleum Refineries

Energy consumption in the refinery is dominated by a few processes which are not necessarily the most energy-intensive, but have the greatest throughput. For example, atmospheric and vacuum distillation account for 35-40 percent of total process energy consumed in the refinery, primarily because every barrel of crude must be subjected to an initial separation by distillation. Another example is hydrotreating, which is used to remove sulfur, nitrogen, and metal contaminants from feeds and products and accounts for about 19 percent of energy consumption. Many refinery streams must be hydrotreated prior to entering downstream refining units to reduce sulfur and catalyst poisoning and achieve the before and after desired product quality [DOE 1998].

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Some processes are energy-intensive, but produce excess steam or hydrogen which can be exported to other processes. Prime examples are fluid catalytic cracking and catalytic reforming. Relative energy use for heat and power among the major refinery processes (excluding steam or hydrogen produced) is shown in Figure 2 [DOE 1998]. Over the last twenty years the industry has reduced its energy consumption (Btu/barrel of crude) by nearly 30 percent. This has been accomplished through conservation measures, consolidation of capacity, shut downs of older, smaller, inefficient facilities, and continued improvements in technology. Substantial technological progress has been made, for example, in development of catalysts (e.g., multi-functional catalytic cracking catalysts) which have greater intrinsic activity, higher yields, and more tolerance to poisoning – all of which impact the energy required for processing. Refineries have also made increasing use of practices that improve overall energy efficiency, such as plant heat integration, recovery of waste heat, and implementation of improved housekeeping and maintenance programs. These activities continue to result in incremental improvements in energy efficiency throughout the U.S. refinery system. In recent years, energy intensity has remained relatively constant. However, the cost of energy for heat and power still accounts for as Figure 2. Relative Energy Use of much as 40 percent of operating Major Refinery Processes costs in the refinery. When faced with high environmental costs and Coking low margins, refiners will Catalytic increasingly look to improvements Hydrotreating in energy efficiency to lower costs Alkylation and increase profitability. Advances in technology will remain a viable Catalytic Reforming option for improving the way energy Fluid Catalytic Cracking is used, particularly for very energyintensive processes. Vacuum Distillation Atmospheric Distillation

0

In the distribution, delivery and retail end of the industry, energy 200 400 600 800 is consumed in the form of fuels for transportation of refined products ~Annual Energy Use (Trillion Btu) and in power used for heating and lighting facilities. Improvements to this consumption can potentially come from engines and vehicles with better mile/gallon performance; and improvements in retail station construction, sizing, supply logistics, and lighting.

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Future Characteristics: Energy Use and Refining Processes Ideally, by 2020 the petroleum industry would exhibit a number of desirable characteristics that are significant improvements over current practice. In general, refineries in the future would optimize energy use through more efficient heat exchange and heat integration, better controls, and adopting energy-saving approaches to very energy-intensive process units (e.g., furnaces, distillation towers). Technology to eliminate or substantially reduce fouling would reduce expensive maintenance and down time requirements. Effective integration of controls and practices to increase energy efficiency (e.g., pipe insulation) would result in higher levels of energy optimization. Refineries would maximize their ability to produce energy on-site by increasing the use of cogeneration to generate both heat and power, and in some cases would be producing electricity for sale back to the local grid. In many cases, high efficiency turbines and steam generators would be used to achieve a high thermal efficiency in cogeneration and power generation systems.

Future Characteristics Energy Efficiency { Energy use is optimized throughout the refinery complex { Energy efficiency and process controls are integrated { Fouling of heat exchangers is essentially eliminated { Innovative heat exchangers are in place (all helical, vertical, no baffles) { Use of cogeneration in refineries is optimized, and refineries are power producers { Use of very energy-intensive processes (e.g., distillation, furnaces) is minimized { Source of heat loss (e.g., in pipes) are easily indentified through monitoring { Containment vessels are energy efficient Processing { Processes have optimum flexibility for dealing with variable crude quality { Plants are tightly controlled, and rely on intelligent controls { Plants are fully automated, lab-free, maintenance free, and operated in JIT format (minimal inventory) { More bioscience is used in processing { Effective, well-understood process models are in place { Solid phase catalysts are replaced with ionic liquids { New processes are in place to handle new fuels and fuel requirements

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Processes in the future would be characterized by a high degree of flexibility for handling crudes of variable quality, as well as entirely new feedstocks. Refineries would be tightly controlled to increase performance and efficiency, and require less maintenance and laboratory services. Costs would be minimized by operating with minimal inventory using completely automated processes where possible. Plant engineers would be able to rely on demonstrated, reliable process models to optimize plant performance. Many new processes would be in place to accommodate new fuels and new fuel requirements, and existing processes would be replaced with alternatives that are more energy efficient and environmentally sound (e.g., ionic liquids in place of solid phase catalysts).

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Performance Targets To strive for the ideal refinery in 2020, the industry has identified broad performance targets for energy efficiency and process improvement. There are two central themes underlying these goals: (1) to identify, develop and implement entirely new technology and practices to replace currently used inefficient, energy-intensive technology, and (2) to improve the energy efficiency of existing technology and practices, where possible.

Performance Targets for Energy Efficiency and Process Improvement

{ { { {

Identify routes that, if implemented, would reduce processing energy used in U.S. refineries today by 10% (about 320 trillion Btus) Improve efficiency of conventional technology by 10% (e.g., 92% thermal efficiency in furnaces) Achieve 20% improvement in energy efficiency in selected energy-intensive unit operations Improve yields towards 100% of raw material utilization (e.g., crude feedstocks)

Replacing conventional energyintensive separation processes, for example, could have a major impact on energy consumption in the industry. Distillation processes account for up to 40 percent of all the processing energy consumed in the refinery. Currently, every single barrel of crude oil must be subjected to an initial separation stage using distillation. The thermal efficiency of distillation processes is typically very low, and replacing even a small portion of distillation capacity could have a substantial impact on energy use.

In addition to separations, alternative, less energy-intensive methods for converting crude fractions to the desired products could have a large energy impact. Hydrotreatment, which is used to remove sulfur and other contaminants, and cracking or coking processes are potential candidates. Existing processes could also be improved through redesign, or incorporation of practices that improve heat transfer or reduce process heating requirements (e.g., heat integration, waste heat recovery, better monitoring and maintenance practices). Energy benefits can also be achieved by improving process yields (the percent of product obtained from the feedstock). The objective is to obtain more product and less byproduct or waste than is currently obtained, using the same or less process energy. Potential routes for improving yields are new, more selective catalysts, better chemical pathways for conversion of hydrocarbons, and the use of bioprocessing.

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Technical, Institutional and Market Barriers: Energy Efficiency and Process Improvements There are a number of barriers inhibiting improvements in energy efficiency and petroleum refining processes. These range from technical limitations imposed by current technologies, to institutional factors such as regulation or business practices.

Technical Barriers In refineries, an imposing barrier to improving energy efficiency is the intrinsic inefficiency of refining processes. For example, during the refining of crude fractions, hydrogen is repeatedly added and removed. Cracking and coking processes, which break large, heavy hydrocarbons into smaller molecules, require the input of hydrogen. Other processes, such as catalytic reforming, produce hydrogen along with aromatic hydrocarbons. If hydrogen is not generated in sufficient quantity as a byproduct of processing, then it must be produced independently, at a high energy cost.

Key Technical Barriers: Energy Efficiency Technology Efficiency Limits { Intrinsic inefficiencies in refining { Inefficiency of current separation technology { Limited fuel conversion efficiencies { Lack of novel heat integration systems Fouling { Lack of cost effective, predictive fouling/corrosion technologies { Poor understanding of fouling mechanisms

The refinery complex also relies on a large number of distillation columns (nearly every unit operation requires distillation for product recovery or purification) which typically operate at low efficiencies due to thermodynamic and other restraints. The low efficiency of separation technologies used throughout refining drives high energy consumption in the industry.

Fouling of heat exchange equipment also represents a major problem for refiners. Fouling reduces thermal efficiency and heat transfer capacity, resulting in significant increases in energy use. Fouling creates an economic burden through increased energy costs, lost productivity, unscheduled plant shut downs, and increased maintenance of equipment. Fouling is difficult to prevent, as the mechanisms which lead to fouling are not well understood. Tools for predicting and monitoring fouling conditions are limited, but becoming available. Their true effectiveness is still unknown.

Technical barriers that limit process improvement fall into several key categories – process engineering, sensing and measurement, and process modeling. An imposing barrier to implementing better processes is that there are simply not enough alternatives to the conventional way of refining crude. Alternatives are needed, for example, to replace processes requiring severe operating conditions (e.g., very high temperatures and pressures, cryogenics, acid catalysts). Processes operating at ambient conditions, such as bioprocesses, could be candidates but are currently not well-developed.

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Accurate sensing and measurement techniques are essential for effective control and monitoring of processes. The greatest limitation in this area is the inability to rapidly, precisely, and accurately obtain the composition of feeds and products, and then process that information in a control loop. Having this information would enable plant engineers to adjust conditions to maximize yields, and consequently energy requirements. Composition sensing is dependent on effective chemical composition Key Technical Barriers: analyzers and sensors, which are Process Improvement currently inadequate for non-intrusive, real-time applications. Process Engineering

{ { {

Lack of alternative processes Inadequate selectivity of current catalyst systems Poor understanding of biocatalytic processes

There is currently a lack of process models based on first principles that would allow process designers to extrapolate beyond the scope of Sensing and Measurement { Inability to rapidly/accurately obtain composition of available data, which limits design feeds and products optimization. In general, models that { Lack of real-time chemical composition analyzers comprehensively describe petroleum and non-intrusive sensors refining processes are limited or { Lack of remote sensors for plant monitoring incomplete. The purpose of process models is to estimate and predict Process Modeling performance, and without this { Lack of models to extrapolate beyond data capability, process engineers must { Incomplete models for refining processes make “guesses” about how process { No capability to link composition to physical improvements will affect properties and emissions performance. When millions of dollars of product are at stake daily, this is usually too risky a proposition. The alternative is to conduct experiments to try and determine the end results of proposed design changes – often an expensive and time-consuming process.

Institutional and Other Barriers The regulatory environment, cost and risk of developing new technology, and lack of long-term commitment to fundamental research (e.g., catalysis, process optimization) are all seen as barriers to improving both energy efficiency and processes. Energy efficiency is not usually a business driver, and is difficult to justify as an investment when capital recovery is too long. Exacerbating this problem is the uncertainty of future product requirements, which may be affected by both consumer demand for performance and regulatory mandates.

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Research and Development Needs Research and development needed to overcome the major barriers to increasing energy efficiency and improving processes is shown in Figures 3 and 4. R&D is categorized as top and high priority, and aligned by time frame for expected results. Arrows describe the main relationships between research. Figure 3. Research Needs for Energy Efficiency

Near-Term (0-3Years)

Priority

TOP

Mid-Term (by 2010)

Develop new methods for fouling mitigation, with focus on 2 high profile unit operations.

Develop several antifouling coatings for equipment operating at > 500 oC.

Devise measurement techniques to detect the on-set of fouling in 90% of heat exchangers.

Conduct field verification tests of fouling variables and prevention methods.

Develop membranes for hydrocarbon separations, to achieve 20% efficiency improvement

Long-Term (by 2020)

Identify and develop alternatives for distillation beyond membranes (entirely new low-energy separation technologies)

Design new, more energy efficient equipment that combines mass and heat transfer and catalysis (e.g., catalytic distillation). Increase fuel conversion efficiency through research on at least 2 alternative technologies that utilize waste streams.

HIGH

Investigate and categorize 60% of mechanisms leading to fouling in heat exchangers.

Explore mechanisms of the interactive effects of fouling and corrosion.

Design novel heat exchangers to reduce fouling and other reliability problems.

Identify and develop innovative technology for recovery of low-level waste heat.

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Energy is a major part of operating costs in refineries, second only to the cost of crude. The use of energy is directly related to the thermal efficiency of process heating equipment, as well as process design, operation and control. Improvements in the way energy is converted to process heat, for example, can increase energy efficiency. A major impact area in process heating is the mitigation of fouling in heat exchangers (see Table 1). Fouling reduces heat transfer efficiency, resulting in an increase in expenditures for energy and equipment maintenance. Fouling of heat exchangers used in refining of crude oils is a well-documented problem. Various estimates put the cost of process-side fouling in petroleum refineries in the United States at about $2 billion a year. An Exxon study in 1981 showed that for a typical refinery with a capacity of 100,000 bbl/d, fouling-related costs were about $12 million per year, of which about one third was for added energy [Exxon 1981]. A major share of the cost penalty occurs in the crude pre-heat train. A study by Argonne in 1998 showed that fouling of the pre-heat train increased energy consumption by about 12,000 Btu/bbl after one year of operation without cleaning [ANL 1998]. This represents about a 10 percent increase in the amount of energy used per barrel of crude for atmospheric distillation [DOE 1998].

Table 1. High Priority R&D Topics for Energy Efficiency and Process Improvement Importance to Industry

Energy Savings Potential

Likelihood of Short Term Success

Potential Competitive Issue

Fouling Mitigation in Heat Exchangers

High

High

Low

Low

Improved Real-time Process Measurements

High

Medium

Medium

Low

Medium

Medium

Medium

Medium

Topic

Improved Fuel Conversion Efficiency

{ { { { {

In petroleum refining, the complexity of crude composition makes it particularly difficult to develop a generalized fouling mitigation method. Important research goals are developing an understanding of the threshold conditions of fouling with the chemical composition of crude, and using this knowledge to determine the effectiveness of mitigation methods for various crude blending processes (see Figure 3). Thermal stability Topics Areas of Practical Interest in Fouling and solubility characteristics of asphaltenes, with and without fouling precursors such as Role of iron/iron sulfides in hydrocarbon stream fouling iron or sulfur compounds, are two key issues. Role of asphaltenes and non-asphaltenes in fouling Impact of crude oil components in blending Iron can be either a part of crude feed stocks Impact of oilfield chemicals on fouling (silica, calcium) or a corrosion product. High concentration of Chemical cleaning (solvents and surfactants) naphthenic acid in the crude, for example, has been shown to cause corrosion products, leading to a high fouling rate. Unit operations of greatest interest include the crude oil pre-heat train, and efficient feed heat exchange for hydrotreating and reforming processes.

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Figure 4. Research Needs for Process Improvement

Priority

TOP

On-Going (now - 2020)

Develop capability to obtain real-time process measurements for >5 parameters (chemical composition, physical properties).

Develop measurement technology to obtain process data to support new models. Increase knowledge of fundamental relationships between structure and properties, particularly in mixtures.

Near-Term (0-3Years)

Develop automated modeling mechanisms that capture the knowledge gained from plant process measurements.

Apply data to modeling techniques to allow prediction of yield, composition, and property data, and tie results into process control and monitoring.

Develop improved catalysts for deep diesel desulfurization.

Increase understanding of the biological mechanisms of selectivity.

HIGH

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Mid-Term (by 2010)

Create systems for on-line, intelligent processing for optimizing at least 2 major unit operations.

Long-Term (by 2020)

Simultaneously explore at least 3 direct pathways to the processing and refining of hydrocarbons.

Develop capability for computational catalyst design.

Develop >5 new chemical catalysts for low-temperature environments. Increase catalyst life by 2-fold through new sulfur and nitrogentolerant catalysts. Develop a single, nonenergy requiring biocatalyst for hydrocarbon and heteroatom conversion.

Address the current limitations of biocatalysts to increase applicability in refining processes.

Design desulfurization biocatalysts with improved selectivity and activity.

Use metabolic engineering to enhance reaction rates in biocatalysts until they are comparable to chemical catalysts.

Study 2 methods to control activity and selectivity of biocatalysts: directed evolution and bioenergetics.

Develop new processes to convert gases to liquid fuels.

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Another priority research area is development and use of equipment that combines mass and heat transfer mechanisms and catalysis to achieve the desired results more efficiently. An example of this is catalytic distillation, which is currently used in the production of fuel additives such as methyl-tert-butyl-ether (MTBE) and tertiary-amylmethyl-ether (TAME). Catalytic distillation reduces energy use by using the heat of reaction to drive the distillation process, eliminating the need for separate energy input. It is a single-stage process, and in the case of ethers, provides higher product yields and less processing time when compared with the conventional process. Other priority research areas that impact energy use include the need to improve fuel conversion efficiency, and development of more effective, alternative separation processes to distillation. Fuel conversion efficiency could be improved through the development of technologies that use waste streams as fuel, such as fuel cells that use propane or fuel gas, or new concepts such as pulse combustion fuel cells. Membranes that are capable of efficiently separating hydrocarbons are needed, as well as entirely new, low-energy alternatives to distillation that go beyond membranes. In process improvement, the most important research area is developing the capability for real-time process measurements. A primary objective is the capability to rapidly, precisely, and accurately obtain information on the composition of feeds and products, and be able to interpret this information for use in process optimization. This will require the development of on-line, real-time chemical composition analyzers that can performin refinery operating environments. To support this capability, research is needed to devise measurement technologies that will obtain the data needed for Generate Real-Time Process Data for computational methods for Measurements Models process design as well as control. Data obtained through real-time measureStructure-Property Modeling Tools Relationships ments can be used to develop on-line intelligent processing systems, which have been Supported Ideal Refinery Characteristics: identified as a high priority. • Fully Automated Data will also support the • Intelligent Controls INTELLIGENT REALdevelopment of automated • Well-Understood Processes TIME PROCESSING • Increased Safety & Reliability modeling mechanisms and • Maximized Use of Energy predictive modeling techniques, which can provide Figure 5. R&D Links for Intelligent Real-Time Processing a means to capture knowledge gained from operating experience and apply it to process optimization, design and control. Research to better understand the fundamental relationships between structure and properties, particularly in mixtures, will be needed to support both model design and interpretation. Figure 5 illustrates the critical links between R&D in these areas.

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Catalysis has been identified as a priority research area for improving a number of processes. The primary area of interest is catalysts that achieve the desired results in low temperature environments, with potential reductions in process heat requirements. Desulfurization catalysts are another priority research area, as are catalysts that are highly resistant to poisoning by sulfur and nitrogen. As crude quality continues to decrease, along with more stringent specifications on sulfur content in fuels, the availability of effective, long-life desulfurization catalysts will become increasingly critical.

Robust biocatalysts that can operate in severe refining environments are a high priority. Research is needed to overcome the sensitivities inherent in the current generation of biocatalysts, and to increase the reaction rates and selectivity of biocatalysts. Particular areas of interest include the conversion and upgrading of hydrocarbon streams, and removal of heteroatoms (e.g., nitrogen, sulfur). Research is needed to study the biological mechanisms of these catalysts with regard to selectivity and activity for specific reactions. Methods for controlling the activity and selectivity of biocatalysts are also needed (e.g., directed evolution, bioenergetics). Leap-frog technology is needed to reduce the large MILD PROCESSING amount of energy used in • Maximized Use of Energy CONDITIONS • Zero Emissions • Increased Safety and Reliabilty distillation throughout the refinery complex. Alternative Real-Tim e separation technologies may Catalysts for Low Better Sulfur Measurm ents of Alternative Robust Temperature Temperature Reduction Separations Biocatalysts Controls Com position and Environm ents Technology be one answer (e.g., Temperature membranes, reactive New Materials New Separations Robust Biocatalysts Better Selectivity distillation). Another route is New Catalysts Low Emissions Process Models Diverse Feedstocks Com putational Chemistry bypassing the initial distillation of crude altogether through revolutionary new pathways, Figure 6. R&D Leading to Mild Processing Conditions such as thermal cracking. Other possibilities include processes that convert gases directly to liquid fuels, or that clean and upgrade the crude in the field, before it enters the refinery. Supported Ideal Refinery Characteristics:

Many of the technologies and research areas discussed above will support processing of hydrocarbons under milder conditions (temperatures, pressures, less corrosive) than is currently possible. Operation at less severe conditions will lead to lower energy consumption, reduced emissions, and improved safety and reliability (see Figure 6).

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(QYLURQPHQWDO3HUIRUPDQFH Current Situation Petroleum products are critical to the economy, providing fuels for transportation as well as industrial and residential heating. As petroleum products are burned in cars, trucks, industrial heaters, utility boilers, and residential heating systems, they create Sources of Air Emissions in Refineries various air emissions. In addition, the manufacturing processes used to { combustion emissions associated with the produce petroleum products also burning of fuels in the refinery, including fuels used in the generation of electricity, generate a variety of air emissions and { equipment leak emissions (fugitive emissions) other residuals. Some of these are released through leaking valves, pumps, or other process devices, hazardous and/or toxic chemicals.

{

process vent emissions (point source emissions) released from process vents during manufacturing (e.g., venting, chemical reactions), storage tank emissions released when product is transferred to and from storage tanks, and wastewater system emissions from tanks, ponds and sewer system drains.

Refineries also produce process { wastewater, which consists of surface { water runoff, cooling water, process water, and sanitary wastewater. Wastewaters are treated in water treatment facilities and discharged to public water treatment plants or surface waters (under permit). Wastewater that has been contaminated with oil must often be subjected to two or three water treatment steps to remove contaminants prior to discharge to public treatment plants. [DOE 1998]

Both hazardous and non-hazardous wastes and other residuals are produced, recycled, treated, and disposed of during refinery operations. The method of disposal of these residuals depends upon the nature of the residual and applicable regulations. Residuals are generated from many refining processes, from the handling of the petroleum products through wastewater treatment. Overall, Volatile Organic Particulates Compounds refineries recycle about 54 percent of the 557 MMlbs (VOCs) 18 MMlbs residuals produced, according to 1995 data. Carbon Further, the trend towards increased recycling Monoxide (CO) continued in 1996, with about 60 percent 313 MMlbs Sulfur recycling of residuals [API 1997c]. Oxides Nitrogen Oxides (NOx) 1063 MMlbs

(SOx) 2001 MMlbs

Figure 5. Estimated Air Emissions from Combustion of Fuels in Refineries, 1996

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Petroleum refining and the use of refined products are impacted by a number of environmental laws and regulations. Some of the most significant statutes are those that focus on altering the formulation of products (mostly fuels) to reduce air emissions generated by their use. These often require substantial changes in

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refinery processes along with large capital investments. Various Federal and state regulations also focus on reducing refinery process emissions to air, land, and water.

Major Air Toxics from Refineries Toluene Ammonia Methanol nHexane Propylene Methyl Ethyl Ketone Xylene

Benzene MTBE Ethylene Hydrochloric Acid Cyclohexane Ethylbenzene 1,2,4-Trimethylbenzene

The cost of controlling emissions to air, land and water is high. Petroleum refiners spent about $5.5 billion in 1995 on environmental compliance [API 1997b]. About 40 percent of this was for capital expenditures; the remainder was for operation and maintenance of equipment for environmental control and abatement. Residuals from Refineries (1995) Residual Spent Caustics Biomass Contaminated Soils/Solids Slop Oil Emulsion Solids FCC Catalyst DAF Float Primary Sludges Tank Bottoms Pond Sediments

1000 wet tons 988 582 525 225 173 164 128 83 65

The refining industry participates in a number of public and private initiatives aimed at improving environmental performance. The STEP initiative (Strategies for Today’s Environmental Partnership), for example, is a collective environmental strategy supported by the membership of the American Petroleum Institute (API) to improve environmental, health and safety performance [API 1997a]. The National Petroleum Refiners Association sponsors a similar program, Building Environmental Stewardship Tools (BEST) to promote the same principles at refineries that are not API members.

Major Federal Regulations Affecting the Petroleum Industry

{ { { { { { { { {

Clean Air Act of 1970 (CAA) and regulations Clean Air Act Amendments of 1990 (CAAA) and regulations thereunder Resource Conservation and Recovery Act (RCRA) Clean Water Act (CWA) Safe Drinking Water Act (SDWA) Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) OSHA Health Standards and Process Safety Management Rules Emergency Planning and Community Right-to-Know (EPCRA) 1990 Oil Pollution Act and Spill Prevention Control and Countermeasure Plans

Many refineries also participated in the Environmental Protection Agency’s 33/50 program to reduce air toxics, and some are actively involved with other government environmental initiatives (e.g., Green Lights Program).

Refineries have also been working to increase recycling, reduce pollution and decrease releases of toxic chemicals. Approximately 40 percent of refineries conduct pollution prevention activities at their facilities [EPA 1995a]. In addition, total releases of toxic chemicals from refineries (counting only those included in the Toxic Release Inventory since 1988) have declined by 26 percent since 1988 [API 1997a].

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Global climate change and potential reductions in greenhouse gas emissions are also receiving a great deal of attention, although there are still questions about the extent of climate change, and whether the U.S. will sign the Kyoto treaty. Voluntary reduction programs continue to be a possibility on the horizon.

Future Characteristics: Environmental Performance Ideally, by 2020, the U.S. petroleum industry would like to be recognized as a model of continuous improvement in environmental performance, while successfully balancing efforts to meet consumer demands for safe, high performance fuels. The industry would move toward minimizing environmental impacts through a combination of improved decision-making and process optimization. Environmental concerns would be integrated into the production side of the refinery (e.g., balancing sulfur in the Means to address environmental concerns are refinery, from crude to products). To integrated with production Products are totally contained, from refinery to accomplish this effectively, a systems consumer (no toxic leaks) approach would be employed which relies Environmental impacts on society are minimized on collaboration between producers, users, (work toward zero emissions) Processes will handle poor quality feeds with minimal and regulators. Data would be available to environmental impact enable decision-makers and regulators to Environmental decisions will be risk-based, using sound scientific methods better understand the actual impacts of the Refinery configurations will be flexible to handle production and use of petroleum products poorer quality feedstocks and alternate feedstocks, on the environment and human health, and with minimal environmental impacts Monitoring and sensing will greatly improved, with thus make regulatory and control decisions automated control to correct and eliminate emissions based on quantified risks. The Storage tanks will be leak-free technological, economic, and political concerns of all stakeholders would be balanced in this process. Verified, riskbased models would be in place to support regulatory decisions. The environmental aspects of poorer quality feedstocks, as well as alternative feedstocks, would be incorporated in the decision-making process and reflected in refinery processing configurations.

Future Characteristics: Environmental Performance

{ { { { { { { {

To support continuous improvements in environmental performance, better monitoring and sensing systems would be in place to optimize control of process variables, monitor emissions as they arise, and activate effective controls to correct the situation. Refineries would move toward minimal impacts on society (e.g., cleaner waste water, lower emissions), using the least costly technology available. Storage tanks would be designed to eliminate leaks, and products would be totally contained, from the refinery all the way to the consumer.

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Performance Targets The industry has identified a number of broad targets for environmental performance that are in line with the industry’s vision for 2020. Specific targets focus on reducing emissions to air, land and water; using risk-based standards; and establishing a sound, flexible approach for improving environmental performance. An overarching goal is to reduce generation of wastewater and solid waste from petroleum refining, and to reduce air emissions from both stationary and mobile sources. Other targets Attain a leadership position in emission standards Offset contamination of public waterways from include reducing the amount of and potential for leaks - reduce incidents by 75% events that results in spills, and reducing the Publish an industry report in 2000 and report amount of oil present in wastewater. Meeting the every 5 years on improvements Identify and implement economical routes to zero goals for reductions in waste and emissions will discharges result in many benefits for the industry as well as Match environmental performance with riskbased standards the nation. Reducing waste generation will avoid Continually improve the tools for risk evaluation potential environmental impacts on land and Reduce wastewater flow, solid wastes, and water, while reducing the costs and energy emissions to air from stationary and mobile sources consumption associated with waste handling, Establish (by 2000) quantitative targets for treatment and transportation. When processes reductions, using a risk-based approach are redesigned to mitigate production of waste or Reduce the number of events (spills) Reduce the amount of oil in wastewater undesirable byproducts, yields may be increased, which optimizes consumption of energy feedstocks. Reducing air emissions from process heaters, boilers, and from fugitive sources will decrease potential impacts on air quality. Effective control of fugitive air emissions could facilitate recovery of valuable products worth millions of dollars and representing trillions of BTUs of energy feedstocks every year. Performance Targets for Environmental Performance

{ { { { { { { { { {

By the end of the year 2000, the industry hopes to effectively establish quantitative targets for reductions in emissions, wastes and wasterwaters, using a risk-based approach. As risk-based quantitative targets are established, the industry can work more definitively toward meeting specific goals. The goal is to establish a mutally cooperative process to reduce emissions, rather than being driven by regulation. An important part of this effort over the next decade will be continually improving the tools by which risk-based evaluation is done. To evaluate progress, industry proposes to publish a report in 2000 on environmental performance, and to report every 5 years thereafter, including incremental improvements. Ultimately, refiners should be able to take a flexible approach to meeting and establishing environmental goals, while balancing increasing demand for high performance products. This could mean a variety of solutions from process redesign to end-of-pipe monitoring and control.

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Technical and Institutional Barriers: Environmental Performance Technical Barriers Technical as well as institutional barriers impact how the petroleum industry addresses environmental concerns. While some of these cannot be addressed by research, technological advances may have a significant influence on whether they remain barriers over the next two decades.

Key Technical Barriers: Environmental Performance Risk Assessment

{ {

Lack of toxicology database to support risk assessment No inexpensive means for evaluating toxicity

Site Remediation

{ { {

No cost-effective technology for MTBE clean-up No leak-proof delivery systems at service stations Lack of good methods for leak detection from tanks

Emissions to Air

{ { { { {

Inability to cheaply and effectively detect leaks at refineries Poor understanding of sources of emissions Insufficient data and modeling for ozone formation Inadequate methods for NOX and SOX removal Inability to cost-effectively control combustion and fugitive emissions

A key barrier is the way that risk assessments of environmental and health impacts are currently made. At present the science behind risk assessment is not strong, and accepted levels of risk are seriously lacking. One reason is the lack of a toxicology database that supports credible risk assessment. Creating a comprehensive toxicology database requires an inexpensive, expedient means for evaluating toxicity, which currently is not available.

Effectively performing site remediation continues to be a challenge. There are currently no cost-effective technologies for cleaning up MTBE, and future Wastewater remediation of sites containing { Inadequate knowledge about what components in MTBE will pose considerable wastewater kill aquatic organisms economic burdens. The lack of { High cost of water recycle, and handling corrosives from good methods for leak detection from underground storage tanks, and lack of leak-proof fuel delivery systems at distribution sites (service stations) exacerbates the problem of both site contamination and remediation. Current sensing capabilities place some limits on the ability to control and reduce air emissions. Cost-effective reliable means for detecting leaks in pipes, valves, and equipment in the refinery (e.g., those that give rise to fugitive emissions) are currently not available. Effective sensing systems for such leaks could enable control and/or elimination of many sources of fugitive emissions altogether.

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The lack of information and scientific understanding concerning some air emissions makes it more difficult to devise means to control emissions. The sources of some emissions are poorly understood, and data for predicting sources of emissions is limited. Data, for example, are lacking on emission factors as well as the chemistry associated with the formation of very small particulates (PM 2.5) from combustion of fuels or other refinery processes. Sources and formation of ozone is another area where knowledge is lacking. Currently available data and models are not sufficient for use as tools in predicting the impacts of transportation, for example, in specific regions. For some air emissions, current technology for mitigation and control is simply not cost-effective and or sufficient to meet some projected targets (e.g., NOX and SOX control). Key challenges for control and reduction of wastewater are the costs involved in water recycle, as well as dealing with the corrosion problems (e.g., salts) that may arise from water reuse. Some wastewater streams represent very dilute solutions, which make it very difficult and costly to separate undesirable constituents. Understanding of the wastewater constituents in general, and their specific impacts on aquatic life, is limited. As more is understood about the actual effects of wastewater constituents on ecosystems, processes can be designed to cost-effectively reduce those impacts.

Institutional Barriers The data, models, and processes currently supporting the development of regulations inhibits the industry from taking a more effective approach to improvements in environmental performance. A key barrier is that the models currently in use to determine impacts and facilitate the regulatory process are inadequate and out-dated. The result is models that produce results that exaggerate the impact of refineries.

Key Institutional Barriers: Environmental Performance Regulatory Issues

{ { {

Models are based on overly conservative assumptions Inadequate collaboration between industry and regulatory agencies Models used for development of regulations are outdated.

Agencies that rely on these models or other out-dated means for developing regulations sometimes create goals for compliance that are too high to reach. Such regulations may be difficult to comply with, and often divert costs toward end-of-pipe controls rather than long-term solutions to mitigate emissions at the origin.

Part of the problem is that during the regulatory process, industry and regulatory agencies are not collaborating to the extent needed to ensure regulations are based on verifiable, quantified risks. Contributing to the problem is that funding for research (both public and private) to increase understanding of environmental issues and collect the needed date is increasingly scarce.

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Research and Development Needs Research and development can help overcome some of the most critical barriers to achieving continuous improvements in environmental performance (see Figure 6). Figure 6. Research and Development Needs for Environmental Performance Near-Term (0-3Years)

Priority

TOP

Mid-Term (by 2010)

Long-Term (by 2020)

Develop an agreed-upon method for risk assessment, emphasizing 3 key areas: 1) toxicity and exposure to humans, 2) uncertainties in extrapolation of data from animals to humans, and 3) new approaches for current assessment tools with conservative assumptions.

Explore means to better characterize the sources of air toxics.

On-going

Increase the database for PM 2.5 emission factors by 2-fold through development of new analytical and sampling techniques for measuring PM 2.5. Improve capability for remote sensing, with respect to at least 2 important environmental performance areas: 1) fugitive emissions, and 2) site contamination/remediation.

Develop several improved systems for leak detection and repair, with emphasis on portability, lower detection levels, and economics.

HIGH

Explore ways to mitigate the effects of feedstock constituents on refinery wastewater.

Develop at least 2 new technologies for removing contaminants from crude and reducing impact on refinery wastewaters.

Develop cost-effective technology to clean up MTBE , and more effective methods for site assessments.

Improve ozone modeling through better, cheaper data gathering methods, and better methods for quantifying uncertainty.

Pursue technology advances to allow use of bioremediation, focusing on 2 key topics: 1) increasing bioreaction rates, and 2) cost-effectiveness.

Identify refinery wastewater constituents that cause aquatic toxic test failure.

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Achieve complete understanding and modeling of combustion chemistry and formation of air toxics.

Develop several costeffective separation processes for removing salts from wastewater.

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The impact of petroleum fuels on the environment continues to be a major concern, particularly the effects of toxic components released to air, land and water. Key research topics aimed at continuous improvements in environmental performance are shown in Table 2. Risk-based methods are needed to guide the regulatory process as well as compliance. The most important elements of research to develop risk-based analysis and assessment are developing data on toxicity and exposure to humans; and reducing the uncertainties in extrapolating animal data to fit human conditions. Research to improve understanding and prediction of combustion chemistry and formation of air toxics, including primary sources, will be integral to efforts in risk-based analysis. This includes modeling and data collection related to ozone formation. Overall improvements are needed in air quality models, including the ability to handle multiple pollutants, multiple regions, and annual average standards. Along with this research should come a comprehensive review of currently used assessment tools with respect to conservative assumptions, accompanied by the development of data or approaches to replace such assumptions with more valid ones that are universally accepted by government and industry. Risk-based analysis and assessment activities should be conducted in cooperation with EPA (residual risk), CRC, and the API air modeling task force. Table 2. High Priority R&D Topics for Environmental Performance

Importance to Industry

Energy Savings Potential

Likelihood of Short Term Success

Potential Competitive Issue

Agreed-upon Method for Risk Analysis/Assessment

High

Low

Low

Low

Improved System for Leak Detection and Repair

High

Medium

High

Low

Cost-Effective Technology for MTBE Clean-Up

High

Medium

High

Medium

Database for PM 2.5 Emission Factors

High

High

High

Low

Topic

Improved systems for leak detection and repair are a critical area of research, particularly to achieve goals for mitigation and control of volatile hydrocarbons and air toxics. Remote sensing technology that is portable and cost-effective is most desirable. Research should be conducted in concert with instrument vendors, universities and government laboratories (NASA, DOE labs). One possible future technology is the use of Vatellite techniques for detecting hydrocarbon releases remotely from space. An increasing number of satellite systems, having the capability to obtain high resolution spectral data over a wide range of wavelengths (“hyperspectral remote sensing”), are expected to be launched into orbit in the near future. Recent airborne studies sponsored by the Geosat Committee Inc., a consortium of petroleum companies and others who use remote sensing, have demonstrated that these techniques can facilitate environmental assessments of sites with hydrocarbon contamination. As these systems become more widespread, information on hydrocarbon emissions from processing and

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storage areas can be collected more easily and more comprehensively. Earlier detection and repair of leaks will not only decrease the direct loss of product, but also decrease the amount of energy and expense required to bring the product to market by avoiding costly cleanup operations. Research to increase available data on particulates (PM 2.5) is needed to facilitate reductions in air emissions as well a help guide the regulatory process through better air quality data. New sampling and analytical techniques are needed to facilitate data collection and interpretation. A number of organizations could contribute to this effort, notably API, CRC, EPA, DOE and its laboratories, state agencies, and universities. In the area of wastewater management, a priority need is research to reduce or eliminate the effects of the feedstock (crude and its components) on refinery wastewater. Contamination from feeds include metals, sulfur, nitrogen, oil, and various organic compounds, some of which are toxic or hazardous. Process waters that come in contact with oils must sometimes undergo multiple water treatment steps before they can be discharged and/or effectively recycled. One possibility is developing new technologies that remove contaminants from crude, which could help to mitigate contamination further downstream. To enable greater potential for cost-effective recycle of refinery wastewaters, research is needed to develop new separation processes that remove salts, which constitute a potential source of corrosion in process equipment. Site remediation continues to be a challenge, with clean-up of MTBE becoming an area of increasing concern. Designing new, cost-effective methods for cleaning up MTBEcontaminated sites is a high priority, along with more effective methods for assessing site contamination. Bio-remediation is a potential solution for site clean-up. To make this a more viable solution, research is needed to increase bioreaction rates, and to develop cost-effective systems that may be suitable for large-scale operations. Technology advances are needed for both bioremediation and phytoremediation systems that are conducted in situ. The multi-disciplinary nature of this work will require expertise in micro-biology, combined with chemistry and chemical engineering. A collaborative activity is envisioned using universities and national laboratories.

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,QVSHFWLRQDQG&RQWDLQPHQW %RXQGDU\,QWHJULW\ Current Situation Inspection methodologies play a critical role in the overall energy, economic, safety, reliability and environmental performance of the U.S. petroleum industry. Effective inspection of equipment is vital to the construction and safe operation of distillation equipment, furnaces, heat exchange systems, reactors, storage vessels, piping systems, and a host of other unit operations. Testing and monitoring of equipment integrity, particularly while it remains in service, is essential to plant safety and optimum reliability as it pertains to energy efficiency. Many of the currently available inspection technologies are intrusive or destructive, and must be used when equipment is in ‘shut-down’ mode, rather than providing on-line information about equipment integrity. For example, traditional strength testing of metals is destructive, and involves taking a sample and testing it to its point of failure. To prevent catastrophic failures, inspection of equipment operating in high temperature or corrosive environments (heat exchangers, storage tanks, reactor vessels) typically requires shut down of the process on a regular basis. Abnormal operating conditions such as equipment start-up and shut-down also tends to increase vulnerability. In the absence of global inspection technologies, material evaluation often occurs locally. It is therefore necessary for the operator to use good engineering judgement to identify the most likely locations for material degradation. Failures also occur in places where inspection is difficult to conduct (pipe supports, gaskets, under insulation).

Future Characteristics: Inspection and Monitoring of Equipment

{ { { { { { {

Ideally, by 2020, refineries would be significantly safer, more energy efficient and more reliable. Refineries would be highly instrumented to ensure structural integrity of equipment, and would be monitored using global, on-line non-invasive Future Characteristics inspection techniques. These techniques would allow for Refineries are highly instrumented and controlled Global, on-line, non-invasive inspection is routine immediate detection of loss of Immediate detection of loss of containment is containment, and provide early possible warnings for corrosion and potential Fouling of heat exchangers is essentially eliminated Inspection does not require people, and provides flaws in structural integrity. complete knowledge of equipment condition Inspection would be conducted Downtime is minimized automatically, without people, and Refineries approach incidents related to loss of containment would provide complete knowledge of equipment conditions at all times.

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Through highly effective inspection techniques, downtime would be minimized and equipment would approach total reliability. Maintenance would be performed according to routines predicted and suggested by regular global inspections and analysis, rather than on empirical or laboratory data. Refineries would continually work toward zero incidents related to loss of containment. Processes in use would be inherently reliable with respect to containment loss through a combination of better design, improved materials, flexibility to accept a wide crude slate, and more effective operating and maintenance practices. Crude flexibility enables improved energy efficiencies. Equipment, maintenance, and inspection in concert would be more reliable, and less likely to result in leaks or structural failures.

Performance Targets The petroleum industry has identified a number of performance targets for inspection and containment boundary integrity. An overall goal is to be recognized as one of the top U.S. industries in the areas of safety and reliability, based on the Solomon Index. To support this goal the industry will strive to achieve no significant containment boundary releases and eliminate unplanned downtime and slow downs. While safety and energy efficiency are the primary issues, the high cost of incidents as well as equipment maintenance are also major factors. To address the issue of cost, the industry has identified specific targets for reducing capital and operational losses as well as the costs associated with inspection. Improving inspection techniques will yield a number of benefits for the industry. Through better inspection methods, plant operators will be better able to predict the Reduce capital and operational losses due to abnormal situations by 90% health and integrity of equipment while it Become one of the top industries in safety and reliability is in operation. This capability will allow Strive for zero “unacceptable” unplanned downtime and slow downs throughout the industry for early warnings of potential system Reduce labor costs of inspection and support by 75% failures, and enable better preventative Reduce cost of losses due to breach of containment to maintenance and servicing schedules to less than $0.50/1000 EDC barrels (equivalent distillation capacity) be followed. The result will be less Work toward a perfect safety record unplanned downtime, fewer equipment Achieve 75% reduction in safety incidents due to breach shutdowns, and more efficient operation of equipment – all of which reduce costs for capital, labor and energy. Most important, the potential for catastrophic failures and other significant releases through the containment boundary will be greatly reduced. Performance Targets for Inspection & Containment Boundary Integrity

{ { { { { { {

Technical Barriers There are a number of barriers inhibiting improvements in inspection technology. Most of these have to do with the inadequacy of currently available technologies for

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monitoring the mechanical and structural integrity and reliability of equipment. The most critical of these is the lack of accurate, reliable, cost-effective sensing instrumentation and technology for global on-stream inspection of equipment. Temperature and insulation creates especially difficult problems for inspection of pressurized vessels. Remote sensors for mechanical integrity, which are highly desirable for ensuring the safety of the plant and personnel, are limited or non-existent for use in refinery settings. Contributing to the problem is that some systems in the plant are physically difficult to inspect with any confidence (e.g., piping that is partially buried and equipment that is lined and/or insulated). The ability to inspect equipment on-line, when it is in operation, is essential to efficient and profitable operation. The alternative is off-line inspection, which usually requires costly shut-downs of critical equipment and processes, and the attendant energy inefficiencies. The inspection techniques that do exist are often destructive or intrusive, and inadequate for on-line non-destructive evaluation of equipment integrity. Of particular importance is the lack of self-sensing methods to monitor for corrosion and residual stress. Sensing methods for inspection of metals at high temperatures and pressures are also limited.

Key Technical Barriers: Inspection & Containment Boundary Integrity Mechanical Integrity and Reliability

{ { { { { {

Lack of reliable, cost-effective on-stream global inspection technology Lack of predictive technology for fouling and corrosion of equipment Inadequate technology for non-destructive, on-line inspection Inability to inspect piping with confidence to make global assessments Poor understanding of the mechanisms of materials degradation No integrated systems to coordinate sensing, measurement, analysis and corrective responses

Another key barrier which limits the effectiveness of maintaining and operating heat exchange equipment is the lack of cost-effective, reliable methods for predicting the onset of fouling and corrosion (see Section 3 for more on this topic). Failure of this equipment due to fouling and corrosion is a particularly difficult and costly problem in refineries, where such equipment comes into direct contact with crude oil and its higher boiling components. The greatest problems occur in the crude preheat train for atmospheric distillation, where every barrel of oil that enters the refinery is preheated.

Integrated systems that coordinate the results of sensing, measurements, analysis of data, and corrective responses are currently not available. The primary reason is that the software and algorithms needed for analysis of the data have not been developed. While theory for developing the needed algorithms may exist, the data to support validation is often limited or simply not available. Models are lacking for equipment failure modes and reliability analysis, particularly those geared toward the unique conditions of petroleum refining.

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There are a number of areas where the fundamental understanding of materials properties and chemical interactions are not well understood, particularly the aging process and what occurs at the surfaces of materials in actual operating environments. In particular there is a significant lack of understanding about the mechanisms of materials degradation, and an inability to determine the life of materials that are in various stages of deterioration. Also, models linking fluid corrosivity to operating conditions, including crude composition, are limited. Without this knowledge, it is difficult to develop with any accuracy models that can predict how materials will perform under given conditions.

Research Needs Research and development needed to overcome the major barriers to the development and use of better inspection methods is shown in Figure 8. The highest priority research need is the development of global, on-line inspection technology (see Table 3). Global inspection technology offers a step-out opportunity from current methodologies for assessing equipment integrity. Global implies that the inspection occurs at locations remote from the probes. In contrast, conventional inspection methods limit their examinations to the immediate vicinity of the probe. For example, with radiographic (RT) methods, the inspection only occurs at the position of the film. With conventional contact ultrasonics testing (UT), the inspection occurs under the probe or immediately adjacent to it. When using penetrant testing (PT), the inspection only occurs where the dye materials and developer have been applied. Five critical research areas include ultrasonics for pressure vessels, corrosion under insulation inspection, buried piping inspection, equipment fouling detection, and models for placement of improved corrosion probes. Work is already on-going on some advanced global piping inspection technologies, including long range guided wave ultrasonics and electrical pulsing. Although test results show potential promise for these technologies, additional development is still required for advancement to commercial viability. Originally developed for piping inspection, it appears that these technologies would be applicable for vessel inspection. Global inspection methods for vessels are equally enticing as piping inspection technologies. A global vessel inspection methodology would provide increased confidence regarding the detection of localized corrosion. With this improved confidence in the inspection, run lengths between maintenance turnarounds and manned vessel entries can be increased. Maintenance turnarounds are usually scheduled in order to make equipment available for inspection. Increased operating run lengths improves energy efficiency by increasing utilization of employed capital equipment. The goal of research in this area would be to deliver a prototype hardware/software system suitable

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Figure 8. Research Needs for Inspection & Containment Boundary Integrity

Near-Term (0-3Years)

Priority

TOP

Develop techniques for rapid, effective inspection of heat exchanger tubes.

Develop the means for global, volumetric inspection of nozzle joints.

Mid-Term (by 2010) Develop technology for reliable, global onstream inspection of equipment, with focus on 5 critical areas: ultrasonics for pressure vessels, global corrosion-under-insulation inspection, buried pipe, equipment fouling, and placement of improved corrosion probes. Develop >2 methods for monitoring the health of equipment : failure modes and optimized maintenance times. Develop several methods for in situ nondestructive evaluation (NDE) of the degradation of materials properties in-service. Reliably quantify corrosion rates and materials deterioration rates using limited data sets.

Improve maintenance procedures and failure analysis for high temperature equipment through techniques for onstream refractory inspection.

HIGH

Long-Term (by 2020)

Develop new methods for in situ measurement of residual stress on the most common materials of construction.

Reduce corrosion problems by developing a cheap, easy method for testing crude corrosivity.

Develop smart systems for analysis of equipment inspection data.

Design non-contact sensors and measurement technologies for on-stream inspection of welds. Develop methods for onstream inspection of air cooler tubes.

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for vessel (and optionally piping) inspection. The technology would provide operators with the confidence of increasing run lengths by offering the capability of detecting localized corrosion while the equipment was still in service. On insulated vessels, it is envisioned that global inspection methods would maximize inspection coverage with minimal insulation removal. Ideally, these inspection methods would be able to detect both internal and external corrosion. Another high priority is detection, prediction, and prevention of corrosion. Research is needed to develop the capability for reliable quantification of corrosion rates, using only limited data sets. Simple, effective tests to assess the corrosive properties of crude as well as higher boiling components are also needed.

Table 3. High Priority R&D Topics for Inspection and Containment Boundary Integrity

Topic Global On-stream Inspection of Equipment

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Importance to Industry

Energy Savings Potential

Potential Competitive Issue

Chances of Funding from Suppliers

High

High

Low

Medium

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)XHOVDQG)XHO'HOLYHU\ Current Situation Production and use of transportation fuels have long been associated with concerns about emissions and energy conservation. Historically, these concerns have been addressed independently, rather than as part of an integrated system. For example, emissions concerns have driven the establishment of tailpipe standards for heavy-duty engines and light-duty motor vehicles. Energy concerns have been addressed by government-mandated fuel economy standards for light-duty vehicles, and by consumer demands for lower operating costs for heavy-duty vehicles. In some cases, steps taken to address emissions concerns can exacerbate energy concerns, and vice versa. For instance, the use of reformulated gasoline (RFG) to reduce vehicle emissions can be detrimental to energy conservation due to increased energy expended in producing and transporting the fuel, and reduced fuel economy that results from its use. Similarly, lowering sulfur levels in gasoline and diesel fuel may reduce tailpipe emissions, but at a cost of increased energy usage in producing these fuels. Optimized strategies for dealing with emissions and energy concerns require integrated approaches that consider complete life-cycle impacts of various fuel, engine, and after-treatment systems. There are also environmental concerns surrounding fuel delivery systems at the retail level (i.e., at the gas pump), as well as potential environmental and safety impacts during transportation of fuels from the refinery to the customer. To date these concerns have been addressed through incremental improvements, such as better valves, or pump handles that reduce or prevent releases of volatile hydrocarbons. Petroleum products are expected to be a predominant fuel of choice for consumers well into the next century. Their makeup is continually changing, however, to meet new regulatory demands. Other factors influencing fuels include the decreasing quality of available crude feedstocks, and the development of alternative non-petroleum transportation fuels (electricity, biomass).

Future Characteristics In the future, fuel delivery systems would be safer and easier to use. Retail fuel delivery systems for gasoline and other transportation fuels would be entirely sealed, and totally automated, requiring no human touch for delivery. Distribution systems would support a broad variety of products as well as entirely new fuels. Petroleum refineries would be highly flexible, producing the fuels demanded by consumers, regardless of feedstock. Fuels might be tailored to maximize chemical end-

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use products. There would be a shift toward non-fuel and other products to maximize diversity and profitability, with more refineries operating as integrated fuel/chemical industries. Refineries might be producing liquid hydrocarbon fuels for fuel cell vehicles, as well as other alternative fuels. Fuels produced would be clean-burning, and vehicles would be designed to produce fewer emissions.

Performance Targets The industry has identified a number of performance targets to improve fuel delivery systems and create the high performance, safe fuels desired by consumers. The industry will strive to effectively balance the need for cleaner products with Performance Targets for Fuels & Fuel Delivery customer demands for high performance. An important component { Reduce emissions from mobile sources will be taking steps to prevent the { Create products that are cleaner, satisfy customer needs, and meet performance requirements impacts to human health and the { Maintain product quality all the way to the customer environment from fuel exposures and { Reduce expenditures for product quality testing by 75% combustion of fuels in vehicles.

Technical Barriers There are a number of barriers to better fuel delivery and reduced vehicle emissions. In general, there is no integrated, systems approach being taken to develop engine technology with lower mobile source emissions. Further, the industry has little knowledge in advance on how new or reformulated fuels are going to actually perform in advanced technology vehicles (prototypes are not available for testing). Sulfur tolerant catalysts or other sulfur-tolerant control technologies, which could reduce emissions in vehicle exhaust/tailpipes, have not been successfully developed. Current technology for control of nitrogen oxides and particulates from diesel-fueled vehicles is also inadequate. Finally, emission controls now in place on vehicles have a tendency to deteriorate. Fuel delivery systems at service stations are not leak-proof, and contribute to emissions of volatiles. The open systems currently in place are sometimes inadequate, and release emissions during refueling of storage tanks.

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Research and Development Needs Research and development needed to improve fuel delivery systems and reduce vehicle emissions are shown in Figure 9. R&D is categorized as top and high priority, and aligned by time frame for expected results. Arrows describe the main relationships between research. Figure 9. Research and Development Needs for Fuels and Fuel Delivery Near-Term (0-3Years)

Priority

Develop sulfur-tolerant emission control systems in diesel engines.

TOP

Test new versions of reformulated fuels, very low sulfur fuels to quantify emissions.

Mid-Term (by 2010)

Long-Term (by 2020)

Develop a systems approach to fuel/technology interaction.

Develop >3 sulfurtolerant catalysts.

Review mobile transfer of all hazardous materials and develop recommendations to reduce exposure from fuels handling.

Develop innovative, revolutionary systems for the storage and transportation of fuels that minimize leaks and improve delivery.

HIGH

On-going

Study the effects of alternative fuels, particularly low-sulfur fuels, on vehicle emissions. Explore the use of automation to reduce or eliminate tank truck overfills.

Design equipment that is leak-proof and easy to install to improve the safety and performance of fuel delivery systems.

Design distribution mechanisms to redirect inventory levels.

Review the delivery process, from refinery to customers, to identify sources of emissions.

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As discussed earlier, an industry priority is to use an integrated systems approach that combines requirements for fuel efficiency with a desire for reduced emissions (see Table 4). Research is needed to reduce engine exhaust emissions and fuel evaporation emissions. The approach taken may focus on developing better controls, or modifications to fuel specifications. Research is needed to assess how new low-sulfur reformulated fuels will perform in terms of emissions, and alternately, how to reduce emissions from higher sulfur fuels. Severe sulfur reduction from both gasoline and diesel fuel is generally regarded as producing large emissions benefits -- but at a cost in terms of dollars and energy usage. There is the potential to derive similar emissions benefits from fuels with higher sulfur levels by:

{ {

Developing sulfur-tolerant emissions control systems, and Developing on-board sulfur-scrubbing technologies

Severe reduction of NOx emissions under lean conditions remains a major challenge. Some promising technologies involve periodic or continuous injection of a chemical reductant to transform NOx to N2. Often, this reductant is the hydrocarbon fuel itself, thereby resulting in an obvious fuel economy penalty. Development of improved reductants, or other NOx-control technologies, could lead to energy savings. For improved fuel delivery systems, the ultimate objective is better systems that minimize or eliminate leaks from the storage and delivery of fuels. The current delivery process, from refinery to customer, should be evaluated to identify sources of emissions. New equipment is needed that is leak-proof and easy to install, so that current systems can be retrofitted.

Table 4. High Priority R&D Topics for Fuels and Fuel Delivery

Topic Systems Approach to Fuel Efficiency/Emissions Reduction and Control

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Importance to Industry

Energy Savings Potential

Likelihood of Short Term Success

Potential Competitive Issue

High

High

Low

Low

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partnership

A platform for technology research, development, and deployment Cooperative advantages The Industries of the Future strategy enhances the petroleum industry’s efforts to

t

The U.S. is the largest, most sophisticated producer of refined petroleum products in the world, with 16.5 million barrels per day of crude distillation capacity. Revenues from petroleum and its products represent a significant portion of the U.S. gross domestic product. More than 107,000 people work in 152 refineries located in 32 states, and nearly 1 million Americans are employed by over 125,000 service stations across the nation, most of which are independently owned and operated.

• Ensure that technology priorities are identified and advanced.

Petroleum refining has grown increasingly complex in the last 20 years, due to lower-quality crude oil, crude oil price volatility, and environmental regulations that require cleaner manufacturing processes and higher-performance products. Several key drivers are impacting the industry’s competitive position, including continuing its commitment to safety and the environment, exploiting changing markets and demand, responding to competitive forces, improving processes, and increasing the efficiency of energy use and energy products. In many cases, technology research and development (R&D) are key to meeting these challenges and maintaining the health and profitability of the industry.

• Strategically invest in R&D and new technologies that will drive higher levels of performance. • Leverage scarce funds for research. • Increase cooperation among the business, government, and research communities.

Petroleum refining is unique among manufacturing industries from an energy standpoint. It is the country’s single largest source of energy products, supplying 40 percent of total U.S. energy demand and 99 percent of transportation fuels. At the same time, it is also the largest industrial consumer, representing about 7 percent of total U.S. energy consumption.

Relative Energy Use by Major Refinery Processes

700

Trillion Btu annually

500

300

100

0 Coking

2

Catalytic Hydrotreating

Alkylation

Catalytic Reforming

Fluid Catalytic Cracking

Vacuum Distillation

Atmospheric Distillation

Source: Energy and Environmental Profile of the U.S. Petroleum Industry, U.S. DOE, OIT Dec. 1998.

p

Petroleum industry steers the way In February 2000, petroleum industry leaders signed a compact with the U.S. Department of Energy’s Office of Industrial Technologies (OIT) to work together through the Industries of the Future initiative. This initiative is now paving the way for strategic joint development of technologies by government, national laboratories, academia, and industry in alignment with the industrydefined vision, Technology Vision 2020.

and Refiners Associations, has identified the technical areas of greatest concern to the industry and developed a technology roadmap to address them. The roadmapping process is encouraging new government-industry partnerships that will further strengthen the industry, while providing benefits to the nation in terms of energy efficiency and environmental performance.

A key driving force behind the Petroleum Industry of the Future is the American Petroleum Institute’s Technology Committee, which, along with the National Petrochemical

Vision

Roadmap

Implementation

Path Forward

Technology Vision 2020: A Technology Vision for the U.S. Petroleum Industry identifies major goals for the future and outlines broad technology needs.

The goals and research priorities outlined in Technology Roadmap for the Petroleum Industry, Draft 2000, form the basis for making new research investments by both government and industry.

Industry has targeted technology development in the areas of energy and process efficiency, environmental performance, materials and inspection technology, and the refinery distribution system and retail delivery services.

Changing market and technical issues will be considered periodically to ensure that research priorities remain relevant to the needs of both the petroleum industry and its customers.

Waste-heat reduces operating costs A waste-heat ammonia absorption refrigeration unit provides a Rocky Mountain refiner with a reduction in regulated emissions, additional LPG and gasoline recovery, and a less than two-year payback. This advanced design unit was integrated into an existing operation. It uses highly compact heat and mass transfer equipment along with state-of-the-art materials. Waste-heat from the reformer is used to power the unit, which recovers valuable products from the refinery waste fuel header. Ammonia absorption refrigeration is very useful for production of chilled fluids from waste-heat energy and operates well at 250°F (121°C ) or lower. Absorption

refrigeration, invented in 1850, has been largely replaced by compression refrigeration, a simpler system which is less capital-intensive and easier to operate. However, the ability to utilize free waste-heat allows absorption refrigeration to gain the economic advantage over compression. OIT partnered with national laboratories and private industry to demonstrate that ammonia absorption refrigeration can effectively utilize refinery waste-heat to recover valuable resources. The technical and economic results of this project show that government-industry partnerships do provide valuable benefits to the industry and the nation.

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results

High-priority research needs

b

Based on industry-defined priorities and recommendations, OIT awards costshared support to projects that will improve the industry’s energy efficiency and global competitiveness. All awards are made on a 50 percent cost-shared basis through a competitive solicitation process. Solicitations are open to collaborative teams with members from industry, academia, national laboratories, and other sectors that have a stake in the future of the petroleum industry. The petroleum industry has identified research priorities in the following areas: Energy and process efficiency New and improved approaches are important for extracting and processing crude oil into petroleum products. The roadmap includes advances in current methods, the minimization of process energy losses, and identification of completely new approaches to extracting and processing crude oil. In particular, high-priority research topics include fouling mitigation in heat exchangers, improved real-time process measurements, and improved fuel conversion efficiency. Environmental performance The impact of petroleum operations and products on the environment is a major area of emphasis. Key research topics aimed at continuous improvement in environmental performance include a method for risk analysis/assessment and an improved system for leak detection and repair. Materials and inspection technology Effective materials are vital to the efficient operation of production and manufacturing operations. Inspection methods play a critical role in the performance of all phases of the petroleum industry. The highest-priority research need focusing on materials and inspection is the development of a global, on-line inspection technology. Distribution system and retail delivery services Production and use of transportation fuels have long been associated with concerns about emissions and energy conservation. A key industry priority is to use an integrated systems approach that combines consumer requirements for fuel efficiency and performance with a need to reduce vehicle emissions.

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New separation technology for refining Government and industry partners are researching high-performance membranes as alternatives to conventional energy-intensive distillation processes. Pervaporation and reverse-selectivity membranes are being tested for hydrocarbon separation and hydrogen recovery. Potentially, membrane separation could be 20% more energy efficient than distillation.

Demonstrated success OIT has worked with the petroleum industry in many capacities to develop, demonstrate, and deploy energy-efficient and environmentally improved technologies. Selected emerging or commercially available technologies applicable to the petroleum industry include: • Waste Heat Process Chiller

• Low-Profile Fluid Catalytic Converter (FCC)

• Fouling Minimization

• Computational Fluid Dynamic Model of FCC

• Robotics Inspection System

• Gas Imaging for Leak Detection

• Force Internal Recirculation (FIR) Burner

• Advanced Process Analysis for Refining

• Radiation Stabilized Burner

Research and Development Projects

Energy and Process Efficiency

Environmental Performance

Materials and Inspection Technology

Micro Gas Chromatograph Controller Gasoline BioDesulfurization Process Enzyme Selectivity for Desulfurization Catalytic Hydrogenation Retrofit Reactor New Nanoscale Catalysts Based Carbides Selective Catalytic Oxidative Dehydrogenation Oxidative Cracking of Hydrocarbons to Ethylene Alkane Functionalization Catalysts Low-Profile Catalytic Cracking Selective Surface Flow Membrane Catalytic Hydrogen Selective Membrane Advanced Process Analysis for Refining Multi-phase Computational Fluid Dynamics Gas-Phase Thermodynamics Modeling Membrane Reactor for Olefins Membrane to Recover Olefins from Gaseous Streams Energy-Saving Separations Technologies BestPractices

PSA Product Recovery from Residuals Refinery Process Heater System Flame Image Analysis and Control Thermal Image Control for Combustion Rotary Burner Demonstration Low-NOx — Low-Swirl Burner Internal Recirculation Burner Novel Low-NOx Burners

Advanced Materials for Reducing Energy Laser Sensor for Refinery Operations Laser Ultrasonic Tube Coke Monitor Mechanical Integrity Global Inspection Gas Imaging for Leak Detection Corrosion Monitoring System Metal Dusting Phenomena Intermetallic Alloy for Ethylene Reactors Alloy Selection for High Temperatures

For more information and a complete listing of other Petroleum projects, visit www.oit.doe.gov/petroleum

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resources

Integrated support for today and tomorrow

o

OIT’s Petroleum Team supplements its R&D budget by coordinating activities with other OIT programs that can help advance petroleum industry goals. For instance, the Chemical Industry of the Future Team is funding technology development that can also benefit the petroleum industry. OIT programs of value to the petroleum industry include R&D for Enabling Technologies, BestPractices initiatives, and Financial Assistance. In addition, State-Level Industries of the Future programs have begun in a number of states to bring the energy, environmental, and economic benefits of industrial partnerships to the local level.

Enabling Technologies OIT’s Industrial Materials program works with industry, the national laboratories, academia, and others to develop and commercialize new and improved materials that offer superior strength and corrosion resistance in high-temperature industrial environments. One project with direct application across the petroleum industry is the development of new oxide membranes for more efficient liquid and gas separations. The Combustion program is co-funding R&D on three high-efficiency industrial burners that promise to reduce the cost of pollution control through very low emissions of nitrogen oxide, carbon monoxide, and unburned hydrocarbons. Research in Sensors and Controls addresses such challenges as improving sensor reach and accuracy in harsh environments and providing integrated, on-line measurement systems for operatorindependent control of refining processes.

Motor system upgrades pay off in energy savings Annual electricity savings of more than 12 million kWh and over $700,000 were achieved by a large West Coast refiner using OIT’s Motor Challenge. This industry-government partnership assists the refining industry by identifying near-term gains in energy efficiency that can be achieved by adopting existing technologies. This program uses a “systems approach” to motors, drives, and motor-driven equipment that results in reduced energy consumption. The West Coast refiner used this program to identify and justify upgrades on motors, motor drives, and power recovery turbines. 6

How to get involved

BestPractices Through BestPractices, OIT helps the petroleum industry apply existing technologies and methods to save energy and reduce costs, wastes, and emissions. Upgrading or fine-tuning motors, pumps, steam systems, and compressed air systems can result in significant improvements in efficiency and equipment durability. BestPractices offers funding, tools, training, and expert advice and information. BestPractices also provides plant-wide assessments to help petroleum refineries develop an integrated strategy to increase efficiency, reduce emissions, and improve productivity. Up to $100,000 in matching funds is awarded for each assessment through a competitive solicitation process. Participants agree to a case study follow-up that helps publicize the results. Alternatively, small to mid-size manufacturers can take advantage of the Industrial Assessment Centers, which provide no-charge assessments through a network of engineering universities.

Financial Assistance OIT offers targeted Financial Assistance to accelerate technology development and deployment. NICE3 (National Industrial Competitiveness through Energy, Environment, and Economics) provides cost-shared grants of up to $500,000 to industry-state partnerships for demonstrations of clean and energy-efficient technologies. Several emerging petroleum technologies—including an advanced process analysis system, a low-profile fluid catalytic cracking plant, and a robotics inspection system for storage tanks—have been successfully demonstrated with help from NICE3.

Through Industries of the Future partnerships, U.S. petroleum industry companies reap the competitive advantages of more efficient and productive technologies and, in turn, contribute to our nation’s energy efficiency and environmental quality. To participate: • Monitor the OIT Petroleum Industry Team’s Web site for news and announcements of R&D solicitations, meetings and conferences, and research projects. • Team with other organizations and respond to solicitations for cost-shared research. • Begin saving energy, reducing costs, and cutting pollution today by participating in any of the BestPractices programs. • Take advantage of OIT’s extensive information resources, including fact sheets and case studies, training, software decision tools, searchable CDs, newsletters, and publications catalog. • Attend the biennial Industrial Energy Efficiency Symposium and Expo.

A second program, Inventions and Innovation, awards grants of up to $200,000 to inventors of energy-efficient technologies. Grants are used to establish technical performance, conduct early development efforts, and plan commercialization strategies.

For more information on these and other resources, please contact the OIT Clearinghouse at (800) 862-2086.

www.oit.doe.gov/petroleum

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