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

and pressure distilled the organic material into crude oil and

natural gas. The oil flowed from the source rock and

accumulated in thicker, more porous limestone or sandstone,

called reservoir rock. Movements in the Earth trapped the oil

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.

Photo courtesy Institute

of Petroleum

Close-up of reservoir

rock

(oil is in black)

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

shale slide - conveys cuttings to the reserve

pit

reserve pit - collects rock cuttings separated

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

Photo courtesy Institute

of Petroleum

Mud circulation in

the hole

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.

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.

Photo courtesy Phillips

Petroleum Co.

Rotary workers trip

drill pipe

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.

Once the well is completed, they must start the flow of oil into

the well. For limestone reservoir rock, acid is pumped down the

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.

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

started by acidizing or

fracturing 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

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 natural-

ly 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.

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 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)

with different boiling points to a high temperature.

Heating is usually done with high pressure steam to

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

Photo courtesy Phillips

Petroleum

Distillation columns

in an oil refinery

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

(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 silica-

alumina.

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).

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

Photo courtesy Phillips

Petroleum Company

Catalysts used in

catalytic cracking or

reforming

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 carbon-

carbon 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. 10W-

40, 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

Formula Name Boiling Point

C

Normal State

at Room

Temp. +20 C

CH4 Methane -161 gas

CH3CH3 Ethane - 89

CH3CH2CH3 Propane - 42

CH3CH2CH2CH3 Butane -0.5

CH3CH2CH2CH2CH3 Pentane + 36 liquid

CH3(CH2)6CH3 Octane +125

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-molecular-

weight 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 high-

octane, 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 petro-

chemical 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 et-blowdown 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, 15-20% 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

Refineries & Industries

Petrochemical

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

LTD.

I.O.C.L. Mugal-Sarai 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

LTD.

Bawana, Bamnauli &

Delhi

Cylindrical Oil & Storage Tank

8 BLUE STAR LTD. Numaligarh Refinery Ltd.,

Assam

Stand Post

9 LLOYD

INSULATIONS

(INDIA) LTD.

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

Faridabad

Oil Storage Tank

10 UNITECH MACHINES

LTD.

Honda Siel, Noida Water Tank With F.R.P. Lining

11 BLUE STAR LTD. B.P.C.L Marketing

Terminal Harayana

Sumps

12 UNITECH MACHINES

LTD.

Maruti Udyod Ltd.,

Gurgaon

Oil Storage Tanks

13 UNITECH MACHINES

LTD.

Balmer Lawrie, Faridabad M.S. Oil Storage Tanks

14 BLUE STAR LTD. I.O.C.L. Panipat Refinery Stand Post

15 BLUE STAR LTD. Thermal Power Suratgarh

Rajasthan

M.S. Oil Storage Tanks along

with Foundation Bolt

16 BLUE STAR LTD. O.N.G.C. Mehsana Oil

Field,Gujrat

Side Stream Filter & Foundation

Bolt

17 ANAND GATE INDIA

(P) LTD.

Lalru, Punjab 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.

Sahibabad Industrial

Area, Site-IV Ghaziabad

M.S. Tank 15 Kl. Capacity

24 TAIKISHA ENGG (I)

LTD.

Honda Motors & Scooter

(I) Pvt Ltd., Gurgaon

Feeder Assembly For Conveyer

25 TAIKISHA ENGG (I)

LTD.

Honda Motors & Scooter

(I) Pvt Ltd., Gurgaon

Detector Parts For Conveyor

26 TAIKISHA ENGG (I)

LTD.

Honda Motors & Scooter

(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

LTD.

Delhi Jal Board Rithala M.S. Thrust

31 DEGREMONT INDIA

LTD.

Delhi Jal Board Rithala Jib Crane

32 DEGREMONT INDIA

LTD.

Delhi Jal Board Rithala Jib Crane

33 DEGREMONT INDIA

LTD.

Delhi Jal Board Rithala Biofor Weir

34 VOLTAS LTD. Vam Organic & Chemicals

Limited, Gajraula

Clarifier Bridge

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

LTD.

Bangalore Water Supply

and Sewerage Board

Air Receiver

40 UNITECH MACHNES

LTD.

Bangalore Water Supply

and Sewerage Board

Pipe Sleeve, Gang Stand Gland

Cooling Pipe

41 UNITECH MACHNES

LTD.

Godavari Sugar,

Sameervadi

Hydro Pneumatic Tank & Priming

Tank

42 LLOYD INSULATION

(I) LTD.

Moser Baer (I) Ltd.,

Noida

100 KL Storage Tank

43 LLOYD INSULATION

(I) LTD.

IOCL L.P.G. Bottling

Plant, Devangonthi,

Bangalore

Air Receiver

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

THOMPSON

Rayal Seema Power

Tech. Ltd., A.P.

Bunker

APPLICATION BULLETIN...Electric Motor LubricationIndustry - 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.

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 77043Phone: 713.464.6266 • 800.800.5823 • Fax: 713.464.9871

Web: www.lsc.com • Click here to contact us at LSC

LubriMist ® Oil Mist Can Be Cost Effectively Installedon Your Electric Motors And DeliverSignificantly Improved Machinery Reliability.

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1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Challenges on the Horizon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Industry’s Response . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

2 A Vision for the Future . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

3 Energy Efficiency and Process Improvement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Current Situation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Future Characteristics: Energy Use and Refining Processes . . . . . . . . . . . . . . . . 7Performance Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Technical, Institutional and Market Barriers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Research and Development Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

4 Environmental Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Current Situation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Future Characteristics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18Performance Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Technical and Institutional Barriers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20Research and Development Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

5 Inspection and Containment Boundary Integrity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Current Situation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Future Characteristics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Performance Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26Technical Barriers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26Research and Development Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

6 Fuels & Fuel Delivery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31Current Situation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31Future Characteristics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31Performance Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32Technical and Institutional Barriers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32Research and Development Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

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Challenges on the Horizon

Petroleum is the single largest source of energy for United States. On average, everycitizen in the U.S. consumes about 20 pounds of petroleum per day. Petroleum iscritical to the U.S. economy and quality of life, providing fuels for transportation, heatingand industrial uses. Petroleum is the primary source of raw materials for the chemicalindustry, which relies on petrochemicals to produce a myriad of consumer goods, frompaints to plastics. In 1996 the refining industry had over 90,000 employees, and nearly2 million people were employed in service stations. Revenues from refining and refinedproducts represent a significant contribution to the U.S. gross domestic product.

In the 21st century, the petroleum industry must prepare to address many importantchallenges. 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 manycases, technology research and development will be needed to meet these challenges and maintain thehealth and profitability of the industry.

The life-cycle effect of petroleum fuels on theenvironment continues to be a cause for concern. Theindustry is unique in that both the processes used torefine petroleum as well as the products generated(e.g., fuels) are subject to government regulation. Thecombination of regulations to reformulate fuels andreduce emissions from refinery operations make

petroleum refining one of the most heavily regulated industries in the United States. Ascash flows are diverted to ensure compliance with regulation, the direction oftechnological development, as well as profitability, is often impacted.

Consumers also have a tremendous influence on markets and demand for petroleumproducts. Increasingly, consumers are demanding fuels that are safe, less polluting,inexpensive, and provide high performance. They also desire means of fuel deliverythat are quick, convenient, and environmentally sound. Advances in technology may beneeded to ensure fuels as well as fuel delivery systems meet consumer expectations.

Global competition and low profit margins have led to joint ventures, mergers, andrestructuring throughout the industry. The number of refineries has declineddramatically since the 1980s, with those remaining operating at higher capacity and withgreater efficiency. Refineries have had to deal with the economic impacts of changingcrude prices, crude quality variability, and low marketing and transport margins, whilemeeting increased demand for refined products. The industry must continue to find

Key Drivers Affecting the Industry

{ Environmental regulations{ 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

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ways to balance the demand for better and more products with the desire for increasedprofitability and capital productivity. Strategically-driven investments in R&D and newtechnologies represent one way to help drive the industry toward a higher level offinancial performance.

Industry Response

In preparing to respond to these challenges, the petroleum industry, through theAmerican Petroleum Institute (API) and the National Petrochemical and RefinersAssociation (NPRA), has developed Technology Vision 2020: A Technology Vision forthe U.S. Petroleum Industry [API 1999a]. This technology vision for the industry buildson two National Petroleum Council (NPC) reports published in 1995 [NPC 1995a, NPC1995b], which discuss future issues for the oil and gas industry, and the researchneeded to strengthen the industry over the next two decades.

Technology Vision 2020 describes the role of the industry in today’s economy, identifiesmajor goals for the future, and outlines broad technology needs. To support some of thepre-competitive R&D needed to meet future industry goals, the vision advocatescooperation among the petroleum industry, the U.S. Department of Energy, the nationallaboratories, and academia. Government-industry collaboration and effective use of thescientific capabilities of the national laboratory system can leverage scarce funds forresearch and help to ensure that technology advances are identified and made.

The driving force behind the vision is API’s Technology Committee, which is chargedwith identifying the technical areas of greatest concern to the industry and developing atechnology roadmap to address those concerns. In 1999, API took a major step tobetter 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, andconsulting firms serving the industry. The dialog at this workshop provided insights onthe characteristics of the ideal refinery, attainable goals, barriers to overcome, andpriority research areas.

The results of the workshop, along with Technology Vision 2020, provide the foundationfor this technology roadmap. The goals and research priorities outlined in the roadmapwill form the basis for making new research investments by government and industry. Hopefully it will stimulate new government-industry partnerships that will further serve tostrengthen the industry, while providing benefits to the nation in terms of energyefficiency and environmental performance.

The technology roadmap is a dynamic working document for the API TechnologyCommittee. Expectations are that it will be re-evaluated periodically to ensure thatresearch priorities remain relevant to the needs of both the petroleum industry and itscustomers.

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By 2020, it is envisioned that the petroleum industry will exhibit a number of desirablecharacteristics that represent continuous improvements to current practices. Theserelate to the efficient use of energy as a fuel and feedstock in refining processes, theenvironmental performance of refineries and fuel delivery systems, and the reliabilityand safety of plant equipment.

The vision of the industry for the future is summarized as follows [API 1999a, API1999b]:

The petroleum industry of the future will be environmentally sound,energy-efficient, safe and simpler to operate. It will be completelyautomated, operate with minimal inventory, and use processes that arefundamentally well-understood. Over the long term, it will besustainable, viable, and profitable, with complete synergy betweenrefineries and product consumers.

To improve energy and process efficiency , the industry will strive touse cost-effective technology with lower energy-intensity. Refineries willintegrate state-of-the-art technology (e.g., separations, catalysts,sensors and controls, biotechnology) to leap-frog current refinerypractice and bring efficiency to new levels. The result will be a highlyefficient, flexible refinery that can produce a wider range of productsfrom crudes of variable quality as well as non-conventional feedstocks.

Refineries will take advantage of deregulation of utilities to improve theirability to generate (or cogenerate) electricity on-site, and potentially sellelectricity back to the grid. Overall this will reduce the amount of energyrequired for process heat and power, and improve profitability. Therewill 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 byregulation, competitive forces and desired performance requirements. Optimization of engines and fuels as a single entity will result in betterefficiency in both gasoline and diesel engines. New sources of energyfor transportation (e.g., fuel cells for cars) will continue to be developedand implemented.

To improve environmental performance , the industry will strive forlower 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 engineeringcontrols to avoid exposure, and sophisticated sensor technology to immediatelydetect, avoid, and correct releases to the environment. Emissions from engineexhaust and fuel evaporation will be reduced through a combination ofregulation 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, andtransportation. Environmental rules will hopefully evolve through risk-based, prioritized approaches toward environmental concerns.

New structural materials and inspection technology will reduce thecost of maintenance, increase plant safety, and extend the useful life ofequipment. Inspection technology will be global, on-stream, non-invasive, and in some cases, operated remotely. Equipment will behighly instrumented to monitor structural integrity, and the industry willhave no containment boundary releases that significantly impact safety,health or the environment.

In future, the refinery distribution system and retail delivery serviceswill be flexible to handle various feedstocks and a variety of fuels forconventional and emerging alternative-fueled transportation. Servicestations will be larger, more convenient and have higher throughput. Fueling processes and underground storage systems will be improvedto reduce potential impacts on the environment and human health. Forexample, automated fuel dispensing systems will enable consumers toobtain fuel quickly and conveniently.

With this vision in mind, the industry has come together to outline specific goals and thetechnology 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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Electricity0.3 Quads

Natural Gas1.6 Quads

Petroleum Coke1.1 Quads

Refinery Gas2.9 Quads

Other0.4 Quads

Figure 1. Distribution of Energy Use inU.S. Petroleum Refineries

Total EnergyUse: 6.3

Quads (1994)

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Current Situation

Petroleum refining is the most energy-intensive manufacturing industry in the UnitedStates. According to the most recent Manufacturing Energy Consumption Survey(MECs) conducted by the U.S. Department of Energy, the U.S. petroleum refiningindustry consumed 6.3 quads (quadrillion Btu, or 1015 Btu) of energy in 1994 (excludingelectricity generating and transmission losses incurred by the generating utility) [DOE1997]. As shown in Figure 1, the industry uses a diversity of fuel sources, and reliesheavily 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 by-products. Typically about 65 percent of the energy consumed by the industry for heatand power is obtained from by-product fuels.

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

Petroleum refineries generate a considerable amount ofelectricity on-site. In 1994, U.S. refineries met over 40percent of electricity requirements with on-site generation.

Nearly all of this electricity was from cogeneration units, which also generate steam for process heating.

Energy consumption in the refinery is dominated by a few processes which are notnecessarily the most energy-intensive, but have the greatest throughput. For example,atmospheric and vacuum distillation account for 35-40 percent of total process energyconsumed in the refinery, primarily because every barrel of crude must be subjected toan initial separation by distillation. Another example is hydrotreating, which is used toremove sulfur, nitrogen, and metal contaminants from feeds and products and accountsfor about 19 percent of energy consumption. Many refinery streams must behydrotreated prior to entering downstream refining units to reduce sulfur and catalystpoisoning and achieve the before and after desired product quality [DOE 1998].

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0 200 400 600 800

Coking

CatalyticHydrotreating

Alkylation

Catalytic Reforming

Fluid Catalytic Cracking

Vacuum Distillation

AtmosphericDistillation

~Annual Ener gy Use (Trillion Btu )

Figure 2. Relative Ener gy Use ofMajor Refiner y Processes

Some processes are energy-intensive, but produce excess steam or hydrogen whichcan be exported to other processes. Prime examples are fluid catalytic cracking andcatalytic reforming. Relative energy use for heat and power among the major refineryprocesses (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/barrelof crude) by nearly 30 percent. This has been accomplished through conservationmeasures, consolidation of capacity, shut downs of older, smaller, inefficient facilities,and continued improvements in technology. Substantial technological progress hasbeen made, for example, in development of catalysts (e.g., multi-functional catalyticcracking catalysts) which have greater intrinsic activity, higher yields, and moretolerance to poisoning – all of which impact the energy required for processing.

Refineries have also made increasing use of practices that improve overall energyefficiency, such as plant heat integration, recovery of waste heat, and implementation ofimproved housekeeping and maintenance programs. These activities continue to resultin incremental improvements in energy efficiency throughout the U.S. refinery system.

In recent years, energy intensity hasremained relatively constant. However, the cost of energy forheat and power still accounts for asmuch as 40 percent of operatingcosts in the refinery. When facedwith high environmental costs andlow margins, refiners willincreasingly look to improvementsin energy efficiency to lower costsand increase profitability. Advancesin technology will remain a viableoption for improving the way energyis used, particularly for very energy-intensive processes.

In the distribution, delivery and retail end of the industry, energy is consumed in the form of fuels

for transportation of refined productsand in power used for heating and

lighting facilities. Improvements to this consumption can potentially come from enginesand vehicles with better mile/gallon performance; and improvements in retail stationconstruction, 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 desirablecharacteristics that are significant improvements over current practice. In general,refineries in the future would optimize energy use through more efficient heat exchangeand heat integration, better controls, and adopting energy-saving approaches to veryenergy-intensive process units (e.g., furnaces, distillation towers). Technology toeliminate or substantially reduce fouling would reduce expensive maintenance anddown time requirements. Effective integration of controls and practices to increaseenergy efficiency (e.g., pipe insulation) would result in higher levels of energyoptimization. Refineries would maximize their ability to produce energy on-site byincreasing the use of cogeneration to generate both heat and power, and in some caseswould be producing electricity for sale back to the local grid. In many cases, highefficiency turbines and steam generators would be used to achieve a high thermalefficiency in cogeneration and power generation systems.

Processes in the future would becharacterized by a high degree offlexibility for handling crudes ofvariable quality, as well as entirely newfeedstocks. Refineries would betightly controlled to increaseperformance and efficiency, andrequire less maintenance andlaboratory services. Costs would beminimized by operating with minimalinventory using completely automatedprocesses where possible.

Plant engineers would be able to relyon demonstrated, reliable processmodels to optimize plant performance. Many new processes would be inplace to accommodate new fuels andnew fuel requirements, and existingprocesses would be replaced withalternatives that are more energyefficient and environmentally sound(e.g., ionic liquids in place of solidphase catalysts).

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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Performance Targets

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

Replacing conventional energy-intensive separation processes, forexample, could have a major impacton energy consumption in theindustry. Distillation processesaccount for up to 40 percent of all theprocessing energy consumed in therefinery. Currently, every single barrelof crude oil must be subjected to aninitial separation stage usingdistillation. The thermal efficiency ofdistillation processes is typically verylow, and replacing even a smallportion of distillation capacity couldhave a substantial impact on energyuse.

In addition to separations, alternative, less energy-intensive methods for convertingcrude fractions to the desired products could have a large energy impact. Hydro-treatment, which is used to remove sulfur and other contaminants, and cracking orcoking processes are potential candidates. Existing processes could also be improvedthrough redesign, or incorporation of practices that improve heat transfer or reduceprocess heating requirements (e.g., heat integration, waste heat recovery, bettermonitoring and maintenance practices).

Energy benefits can also be achieved by improving process yields (the percent ofproduct obtained from the feedstock). The objective is to obtain more product and lessbyproduct or waste than is currently obtained, using the same or less process energy. Potential routes for improving yields are new, more selective catalysts, better chemicalpathways for conversion of hydrocarbons, and the use of bioprocessing.

Performance Targets for Energy Efficiency and Process Improvement

{ Identify routes that, if implemented, would reduceprocessing energy used in U.S. refineries today by10% (about 320 trillion Btus)

{ Improve efficiency of conventional technology by10% (e.g., 92% thermal efficiency in furnaces)

{ Achieve 20% improvement in energy efficiency inselected energy-intensive unit operations

{ Improve yields towards 100% of raw materialutilization (e.g., crude feedstocks)

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Technical, Institutional and Market Barriers: Energy Efficiency andProcess Improvements

There are a number of barriers inhibiting improvements in energy efficiency andpetroleum refining processes. These range from technical limitations imposed bycurrent technologies, to institutional factors such as regulation or business practices.

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

The refinery complex also relies on alarge number of distillation columns(nearly every unit operation requiresdistillation for product recovery orpurification) which typically operate at lowefficiencies due to thermodynamic andother restraints. The low efficiency ofseparation technologies used throughoutrefining drives high energy consumptionin the industry.

Fouling of heat exchange equipment alsorepresents a major problem for refiners. Fouling reduces thermal efficiency andheat transfer capacity, resulting insignificant 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 isdifficult to prevent, as the mechanisms which lead to fouling are not well understood. Tools for predicting and monitoring fouling conditions are limited, but becomingavailable. 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 imposingbarrier to implementing better processes is that there are simply not enough alternativesto the conventional way of refining crude. Alternatives are needed, for example, toreplace processes requiring severe operating conditions (e.g., very high temperaturesand pressures, cryogenics, acid catalysts). Processes operating at ambient conditions,such as bioprocesses, could be candidates but are currently not well-developed.

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

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Accurate sensing and measurement techniques are essential for effective control andmonitoring of processes. The greatest limitation in this area is the inability to rapidly,precisely, and accurately obtain the composition of feeds and products, and thenprocess that information in a control loop. Having this information would enable plantengineers to adjust conditions to maximize yields, and consequently energyrequirements.

Composition sensing is dependent oneffective chemical compositionanalyzers and sensors, which arecurrently inadequate for non-intrusive,real-time applications.

There is currently a lack of processmodels based on first principles thatwould allow process designers toextrapolate beyond the scope ofavailable data, which limits designoptimization. In general, models thatcomprehensively describe petroleumrefining processes are limited orincomplete. The purpose of processmodels is to estimate and predictperformance, and without thiscapability, process engineers mustmake “guesses” about how processimprovements will affectperformance. When millions ofdollars of product are at stake daily,this is usually too risky a proposition. The alternative is to conductexperiments to try and determine the

end results of proposed design changes – often an expensive and time-consumingprocess.

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

Key Technical Barriers: Process Improvement

Process En gineerin g{ Lack of alternative processes

{ Inadequate selectivity of current catalyst systems

{ Poor understanding of biocatalytic processes

Sensin g and Measurement{ Inability to rapidly/accurately obtain composition of

feeds and products

{ Lack of real-time chemical composition analyzers

and non-intrusive sensors

{ Lack of remote sensors for plant monitoring

Process Modelin g { Lack of models to extrapolate beyond data

{ Incomplete models for refining processes

{ No capability to link composition to physical

properties and emissions

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Develop membranes forhydrocarbonseparations, to achieve20% efficiencyimprovement

TOP

Priority

HIGH

Near-Term(0-3Years)

Mid-Term(by 2010)

Long-Term(by 2020)

Develop new methodsfor fouling mitigation,with focus on 2 highprofile unit operations.

Devise measurementtechniques to detectthe on-set of fouling in90% of heatexchangers.

Identify and developinnovative technologyfor recovery of low-levelwaste heat.

Investigate andcategorize 60% ofmechanisms leading tofouling in heatexchangers.

Design new, moreenergy efficientequipment thatcombines mass andheat transfer andcatalysis (e.g., catalyticdistillation).

Develop several anti-fouling coatings forequipment operating at> 500 oC.

Conduct fieldverification tests offouling variables andprevention methods.

Increase fuelconversion efficiencythrough research on atleast 2 alternativetechnologies that utilizewaste streams.

Identify and developalternatives for distillationbeyond membranes(entirely new low-energyseparation technologies)

Explore mechanisms ofthe interactive effects offouling and corrosion.

Design novel heatexchangers to reducefouling and otherreliability problems.

Research and Development Needs

Research and development needed to overcome the major barriers to increasing energyefficiency and improving processes is shown in Figures 3 and 4. R&D is categorized astop and high priority, and aligned by time frame for expected results. Arrows describethe main relationships between research.

Figure 3. Research Needs for Energy Efficiency

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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 heatingequipment, as well as process design, operation and control. Improvements in the wayenergy is converted to process heat, for example, can increase energy efficiency . Amajor impact area in process heating is the mitigation of fouling in heat exchangers (seeTable 1). Fouling reduces heat transfer efficiency, resulting in an increase inexpenditures for energy and equipment maintenance. Fouling of heat exchangers usedin refining of crude oils is a well-documented problem. Various estimates put the cost ofprocess-side fouling in petroleum refineries in the United States at about $2 billion ayear. An Exxon study in 1981 showed that for a typical refinery with a capacity of100,000 bbl/d, fouling-related costs were about $12 million per year, of which about onethird was for added energy [Exxon 1981]. A major share of the cost penalty occurs in thecrude pre-heat train. A study by Argonne in 1998 showed that fouling of the pre-heattrain increased energy consumption by about 12,000 Btu/bbl after one year of operationwithout cleaning [ANL 1998]. This represents about a 10 percent increase in the amountof energy used per barrel of crude for atmospheric distillation [DOE 1998].

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

TopicImportance to

IndustryEnergy Savings

Potential

Likelihood ofShort Term

SuccessPotential

Competitive Issue

Fouling Mitigation in Heat Exchangers High High Low Low

Improved Real-time Process Measurements High Medium Medium Low

Improved Fuel Conversion Efficiency Medium Medium Medium Medium

In petroleum refining, the complexity of crude composition makes it particularly difficultto develop a generalized fouling mitigation method. Important research goals aredeveloping an understanding of the threshold conditions of fouling with the chemicalcomposition of crude, and using this knowledge to determine the effectiveness of

mitigation methods for various crude blendingprocesses (see Figure 3). Thermal stabilityand solubility characteristics of asphaltenes,with and without fouling precursors such asiron or sulfur compounds, are two key issues.Iron can be either a part of crude feed stocksor a corrosion product. High concentration ofnaphthenic 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 oilpre-heat train, and efficient feed heat exchange for hydrotreating and reformingprocesses.

Topics Areas of Practical Interest in Fouling

{ Role of iron/iron sulfides in hydrocarbon stream fouling{ Role of asphaltenes and non-asphaltenes in fouling{ Impact of crude oil components in blending{ Impact of oilfield chemicals on fouling (silica, calcium){ Chemical cleaning (solvents and surfactants)

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Create systems foron-line, intelligentprocessing foroptimizing at least 2major unitoperations.

TOP

Priority

HIGH

Near-Term(0-3Years)

Mid-Term(by 2010)

On-Going(now - 2020)

Develop capability toobtain real-time processmeasurements for >5parameters (chemicalcomposition, physicalproperties).

Develop measurementtechnology to obtainprocess data to supportnew models.

Address the currentlimitations ofbiocatalysts toincrease applicabilityin refining processes.

Develop >5 newchemical catalysts forlow-temperatureenvironments.

Apply data tomodeling techniquesto allow prediction ofyield, composition,and property data,and tie results intoprocess control andmonitoring.Increase knowledge of

fundamental relationshipsbetween structure andproperties, particularly inmixtures.

Develop automatedmodeling mechanismsthat capture theknowledge gainedfrom plant processmeasurements.

Increase catalyst lifeby 2-fold through newsulfur and nitrogen-tolerant catalysts.

Develop improvedcatalysts for deepdiesel desulfurization.

Develop a single, non-energy requiringbiocatalyst for hydro-carbon and hetero-atom conversion.

Design desulfurizationbiocatalysts withimproved selectivityand activity.

Increaseunderstanding of thebiological mechanismsof selectivity.

Use metabolicengineering toenhance reactionrates in biocatalystsuntil they arecomparable tochemical catalysts.

Long-Term(by 2020)

Study 2 methods tocontrol activity andselectivity ofbiocatalysts: directedevolution andbioenergetics.

Develop capabilityfor computationalcatalyst design.

Simultaneouslyexplore at least 3direct pathways tothe processing andrefining ofhydrocarbons.

Develop newprocesses to convertgases to liquid fuels.

Figure 4. Research Needs for Process Improvement

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INTELLIGENT REAL-TIME PROCESSING

Modeling Tools Structure-PropertyRelationships

Real-Time ProcessMeasurements

GenerateData forModels

Supported Ideal RefineryCharacteristics:

• Fully Automated• Intelligent Controls• Well-Understood Processes• Increased Safety & Reliability• Maximized Use of Energy

Figure 5. R&D Links for Intelligent Real-Time Processing

Another priority research area is development and use of equipment that combinesmass and heat transfer mechanisms and catalysis to achieve the desired results moreefficiently. An example of this is catalytic distillation, which is currently used in theproduction of fuel additives such as methyl-tert-butyl-ether (MTBE) and tertiary-amyl-methyl-ether (TAME). Catalytic distillation reduces energy use by using the heat ofreaction 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 andless processing time when compared with the conventional process.

Other priority research areas that impact energy use include the need to improve fuelconversion efficiency, and development of more effective, alternative separationprocesses to distillation. Fuel conversion efficiency could be improved through thedevelopment of technologies that use waste streams as fuel, such as fuel cells that usepropane or fuel gas, or new concepts such as pulse combustion fuel cells. Membranesthat are capable of efficiently separating hydrocarbons are needed, as well as entirelynew, low-energy alternatives to distillation that go beyond membranes.

In process improvement , the most important research area is developing the capabilityfor 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 requirethe development of on-line, real-time chemical composition analyzers that can performinrefinery operating environments. To support this capability, research is needed to

devise measurementtechnologies that will obtainthe data needed forcomputational methods forprocess design as well ascontrol. Data obtainedthrough real-time measure-ments can be used to developon-line intelligent processingsystems, which have beenidentified as a high priority. Data will also support thedevelopment of automatedmodeling mechanisms andpredictive modelingtechniques, which can providea means to capture knowledgegained from operating

experience and apply it to process optimization, design and control. Research to betterunderstand the fundamental relationships between structure and properties, particularlyin mixtures, will be needed to support both model design and interpretation. Figure 5illustrates the critical links between R&D in these areas.

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MILDPROCESSINGCONDITIONS

Catalysts for LowTemperature

Environments

Real-TimeMeasurments of

Composition andTemperature

Better SulfurReduction

Technology

AlternativeSeparations

New MaterialsRobust Biocatalysts

New CatalystsProcess Models

Computational Chemistry

RobustBiocatalysts

New SeparationsBetter SelectivityLow Emissions

Diverse Feedstocks

TemperatureControls

Supported Ideal RefineryCharacteristics:

• Maximized Use of Energy• Zero Emissions• Increased Safety and Reliabilty

Figure 6. R&D Leading to Mild Pro cessing Conditions

Catalysis has been identified as a priority research area for improving a number ofprocesses. The primary area of interest is catalysts that achieve the desired results inlow temperature environments, with potential reductions in process heat requirements. Desulfurization catalysts are another priority research area, as are catalysts that arehighly resistant to poisoning by sulfur and nitrogen. As crude quality continues todecrease, along with more stringent specifications on sulfur content in fuels, theavailability 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 ofbiocatalysts, and to increase the reaction rates and selectivity of biocatalysts. Particularareas of interest include the conversion and upgrading of hydrocarbon streams, andremoval of heteroatoms (e.g., nitrogen, sulfur). Research is needed to study thebiological mechanisms of these catalysts with regard to selectivity and activity forspecific reactions. Methods for controlling the activity and selectivity of biocatalysts arealso needed (e.g., directed evolution, bioenergetics).

Leap-frog technology isneeded to reduce the largeamount of energy used indistillation throughout therefinery complex. Alternativeseparation technologies maybe one answer (e.g.,membranes, reactivedistillation). Another route isbypassing the initial distillationof crude altogether throughrevolutionary new pathways,such as thermal cracking.

Other possibilities include processes that convert gases directly to liquid fuels, or thatclean and upgrade the crude in the field, before it enters the refinery.

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

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SulfurOxides

(SOx) 2001MMlbs

NitrogenOxides

(NOx) 1063MMlbs

CarbonMonoxide (CO)

313 MMlbs

Particulates557 MMlbs

Volatile OrganicCompounds

(VOCs) 18 MMlbs

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

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Current Situation

Petroleum products are critical to the economy, providing fuels for transportation as wellas industrial and residential heating. As petroleum products are burned in cars, trucks,industrial heaters, utility boilers, andresidential heating systems, they createvarious air emissions. In addition, themanufacturing processes used toproduce petroleum products alsogenerate a variety of air emissions andother residuals. Some of these arehazardous and/or toxic chemicals.

Refineries also produce processwastewater, which consists of surfacewater runoff, cooling water, processwater, and sanitary wastewater. Wastewaters are treated in watertreatment facilities and discharged topublic water treatment plants or surface waters (under permit). Wastewater that hasbeen contaminated with oil must often be subjected to two or three water treatmentsteps 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 theseresiduals depends upon the nature of the residual and applicable regulations. Residuals

are generated from many refining processes,from the handling of the petroleum productsthrough wastewater treatment. Overall,refineries recycle about 54 percent of theresiduals produced, according to 1995 data. Further, the trend towards increased recyclingcontinued in 1996, with about 60 percentrecycling of residuals [API 1997c].

Petroleum refining and the use of refinedproducts are impacted by a number ofenvironmental laws and regulations. Some ofthe most significant statutes are those that focuson altering the formulation of products (mostlyfuels) to reduce air emissions generated by theiruse. These often require substantial changes in

Sources of Air Emissions in Refineries

{ combustion emissions associated with theburning of fuels in the refinery, including fuels usedin the generation of electricity,

{ equipment leak emissions (fugitive emissions)released through leaking valves, pumps, or otherprocess devices,

{ process vent emissions (point sourceemissions) released from process vents duringmanufacturing (e.g., venting, chemical reactions),

{ storage tank emissions released when product istransferred to and from storage tanks, and

{ wastewater system emissions from tanks, pondsand sewer system drains.

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refinery processes along with largecapital investments. Various Federaland state regulations also focus onreducing refinery process emissions toair, land, and water.

The cost of controlling emissions to air, land and water is high. Petroleum refiners spentabout $5.5 billion in 1995 on environmental compliance [API 1997b]. About 40 percent

of this was for capital expenditures; the remainder was foroperation and maintenance of equipment for environmentalcontrol and abatement.

The refining industry participates in a number of public andprivate initiatives aimed at improving environmentalperformance. The STEP initiative (Strategies for Today’sEnvironmental Partnership), for example, is a collectiveenvironmental strategy supported by the membership of theAmerican Petroleum Institute (API) to improveenvironmental, health and safety performance [API 1997a]. The National Petroleum Refiners Association sponsors asimilar program, Building Environmental Stewardship Tools

(BEST) to promote the same principles at refineries that are not API members.

Many refineries also participated in theEnvironmental Protection Agency’s33/50 program to reduce air toxics, andsome are actively involved with othergovernment environmental initiatives(e.g., Green Lights Program).

Refineries have also been working toincrease recycling, reduce pollution anddecrease releases of toxic chemicals. Approximately 40 percent of refineriesconduct pollution prevention activities attheir facilities [EPA 1995a]. In addition,total releases of toxic chemicals fromrefineries (counting only those included

in the Toxic Release Inventory since 1988) have declined by 26 percent since 1988 [API1997a].

Major Air Toxics from Refineries

TolueneAmmoniaMethanolnHexanePropyleneMethyl Ethyl KetoneXylene

BenzeneMTBEEthyleneHydrochloric AcidCyclohexaneEthylbenzene1,2,4-Trimethylbenzene

Residuals from Refineries (1995)

ResidualSpent CausticsBiomassContaminated Soils/SolidsSlop Oil Emulsion SolidsFCC CatalystDAF FloatPrimary SludgesTank BottomsPond Sediments

1000 wet tons9885825252251731641288365

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

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Global climate change and potential reductions in greenhouse gas emissions are alsoreceiving a great deal of attention, although there are still questions about the extent ofclimate change, and whether the U.S. will sign the Kyoto treaty. Voluntary reductionprograms 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 ofcontinuous improvement in environmental performance, while successfully balancingefforts to meet consumer demands for safe, high performance fuels. The industry wouldmove toward minimizing environmental impacts through a combination of improveddecision-making and process optimization.

Environmental concerns would beintegrated into the production side of therefinery (e.g., balancing sulfur in therefinery, from crude to products). Toaccomplish this effectively, a systemsapproach would be employed which relieson collaboration between producers, users,and regulators. Data would be available toenable decision-makers and regulators tobetter understand the actual impacts of theproduction and use of petroleum productson the environment and human health, andthus make regulatory and control decisionsbased on quantified risks. Thetechnological, economic, and politicalconcerns of all stakeholders would bebalanced in this process. Verified, risk-

based models would be in place to support regulatory decisions. The environmentalaspects of poorer quality feedstocks, as well as alternative feedstocks, would beincorporated in the decision-making process and reflected in refinery processingconfigurations.

To support continuous improvements in environmental performance, better monitoringand sensing systems would be in place to optimize control of process variables, monitoremissions 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 bedesigned to eliminate leaks, and products would be totally contained, from the refineryall the way to the consumer.

Future Characteristics: Environmental Performance

{ Means to address environmental concerns areintegrated with production

{ Products are totally contained, from refinery toconsumer (no toxic leaks)

{ Environmental impacts on society are minimized(work toward zero emissions)

{ Processes will handle poor quality feeds with minimalenvironmental impact

{ Environmental decisions will be risk-based, usingsound scientific methods

{ Refinery configurations will be flexible to handlepoorer quality feedstocks and alternate feedstocks,with minimal environmental impacts

{ Monitoring and sensing will greatly improved, withautomated control to correct and eliminate emissions

{ Storage tanks will be leak-free

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Performance Targets

The industry has identified a number of broad targets for environmental performancethat are in line with the industry’s vision for 2020. Specific targets focus on reducingemissions 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 ofwastewater and solid waste from petroleumrefining, and to reduce air emissions from bothstationary and mobile sources. Other targetsinclude reducing the amount of and potential forevents that results in spills, and reducing theamount of oil present in wastewater. Meeting thegoals for reductions in waste and emissions willresult in many benefits for the industry as well asthe nation. Reducing waste generation will avoidpotential environmental impacts on land andwater, while reducing the costs and energyconsumption associated with waste handling,treatment and transportation. When processesare redesigned to mitigate production of waste orundesirable byproducts, yields may beincreased, which optimizes consumption ofenergy feedstocks. Reducing air emissions from

process heaters, boilers, and from fugitive sources will decrease potential impacts on airquality. Effective control of fugitive air emissions could facilitate recovery of valuableproducts worth millions of dollars and representing trillions of BTUs of energy feedstocksevery year.

By the end of the year 2000, the industry hopes to effectively establish quantitativetargets for reductions in emissions, wastes and wasterwaters, using a risk-basedapproach. As risk-based quantitative targets are established, the industry can workmore definitively toward meeting specific goals. The goal is to establish a mutallycooperative process to reduce emissions, rather than being driven by regulation. Animportant part of this effort over the next decade will be continually improving the toolsby which risk-based evaluation is done. To evaluate progress, industry proposes topublish a report in 2000 on environmental performance, and to report every 5 yearsthereafter, including incremental improvements.

Ultimately, refiners should be able to take a flexible approach to meeting andestablishing environmental goals, while balancing increasing demand for highperformance products. This could mean a variety of solutions from process redesign toend-of-pipe monitoring and control.

Performance Targets for Environmental Performance

{ Attain a leadership position in emission standards{ Offset contamination of public waterways from

leaks - reduce incidents by 75%{ Publish an industry report in 2000 and report

every 5 years on improvements{ Identify and implement economical routes to zero

discharges{ Match environmental performance with risk-

based standards{ Continually improve the tools for risk evaluation{ Reduce wastewater flow, solid wastes, and

emissions to air from stationary and mobilesources

{ Establish (by 2000) quantitative targets forreductions, using a risk-based approach

{ Reduce the number of events (spills){ Reduce the amount of oil in wastewater

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Technical and Institutional Barriers: Environmental Performance

Technical BarriersTechnical as well as institutional barriers impact how the petroleum industry addressesenvironmental concerns. While some of these cannot be addressed by research,technological advances may have a significant influence on whether they remainbarriers over the next two decades.

A key barrier is the way that riskassessments of environmental andhealth impacts are currently made. At present the science behind riskassessment is not strong, andaccepted levels of risk are seriouslylacking. One reason is the lack of atoxicology database that supportscredible risk assessment. Creatinga comprehensive toxicologydatabase requires an inexpensive,expedient means for evaluatingtoxicity, which currently is notavailable.

Effectively performing siteremediation continues to be achallenge. There are currently nocost-effective technologies forcleaning up MTBE, and futureremediation of sites containingMTBE will pose considerableeconomic burdens. The lack ofgood methods for leak detectionfrom underground storage tanks,and lack of leak-proof fuel delivery

systems at distribution sites (service stations) exacerbates the problem of both sitecontamination and remediation.

Current sensing capabilities place some limits on the ability to control and reduce airemissions. Cost-effective reliable means for detecting leaks in pipes, valves, andequipment in the refinery (e.g., those that give rise to fugitive emissions) are currentlynot available. Effective sensing systems for such leaks could enable control and/orelimination of many sources of fugitive emissions altogether.

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

Wastewater{ Inadequate knowledge about what components in

wastewater kill aquatic organisms

{ High cost of water recycle, and handling corrosives from

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The lack of information and scientific understanding concerning some air emissionsmakes it more difficult to devise means to control emissions. The sources of someemissions 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 associatedwith the formation of very small particulates (PM 2.5) from combustion of fuels or otherrefinery processes. Sources and formation of ozone is another area where knowledgeis lacking. Currently available data and models are not sufficient for use as tools inpredicting the impacts of transportation, for example, in specific regions. For some airemissions, current technology for mitigation and control is simply not cost-effective andor 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 waterrecycle, as well as dealing with the corrosion problems (e.g., salts) that may arise fromwater reuse. Some wastewater streams represent very dilute solutions, which make itvery difficult and costly to separate undesirable constituents. Understanding of thewastewater constituents in general, and their specific impacts on aquatic life, is limited. As more is understood about the actual effects of wastewater constituents onecosystems, processes can be designed to cost-effectively reduce those impacts.

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

Agencies that rely on these models or otherout-dated means for developing regulationssometimes create goals for compliance thatare too high to reach. Such regulationsmay be difficult to comply with, and oftendivert costs toward end-of-pipe controlsrather than long-term solutions to mitigateemissions at the origin.

Part of the problem is that during theregulatory process, industry and regulatoryagencies are not collaborating to the extent

needed to ensure regulations are based on verifiable, quantified risks. Contributing tothe problem is that funding for research (both public and private) to increaseunderstanding of environmental issues and collect the needed date is increasinglyscarce.

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 out-

dated.

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TOP

Priority

HIGH

Near-Term(0-3Years)

Mid-Term(by 2010)

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

Develop several improvedsystems for leak detection andrepair, with emphasis onportability, lower detectionlevels, and economics.

Explore ways to mitigate theeffects of feedstockconstituents on refinerywastewater.

Explore means to better characterize the sources of air toxics.

Increase the database for PM 2.5 emission factors by 2-fold through development of new analyticaland sampling techniques for measuring PM 2.5.

Develop cost-effectivetechnology to clean up MTBE ,and more effective methodsfor site assessments.

Improve capability for remote sensing, with respect to at least 2 important environmentalperformance areas: 1) fugitive emissions, and 2) site contamination/remediation.

Identify refinery wastewaterconstituents that causeaquatic toxic test failure.

Achieve completeunderstanding andmodeling of combustionchemistry and formationof air toxics.

Develop at least 2 newtechnologies for removingcontaminants from crude andreducing impact on refinerywastewaters.

Long-Term(by 2020)

Improve ozone modelingthrough better, cheaper datagathering methods, and bettermethods for quantifyinguncertainty.

Pursue technology advancesto allow use of bio-remediation, focusing on 2key topics: 1) increasingbioreaction rates, and 2)cost-effectiveness.

Develop several cost-effective separationprocesses for removing saltsfrom wastewater.

On-going

Research and Development Needs

Research and development can help overcome some of the most critical barriers toachieving continuous improvements in environmental performance (see Figure 6).

Figure 6. Research and Development Needs for Environmental Performance

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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. Keyresearch topics aimed at continuous improvements in environmental performance areshown in Table 2. Risk-based methods are needed to guide the regulatory process aswell as compliance. The most important elements of research to develop risk-basedanalysis and assessment are developing data on toxicity and exposure to humans; andreducing the uncertainties in extrapolating animal data to fit human conditions. Research to improve understanding and prediction of combustion chemistry andformation of air toxics, including primary sources, will be integral to efforts in risk-basedanalysis. This includes modeling and data collection related to ozone formation. Overall improvements are needed in air quality models, including the ability to handlemultiple pollutants, multiple regions, and annual average standards. Along with thisresearch should come a comprehensive review of currently used assessment tools withrespect to conservative assumptions, accompanied by the development of data orapproaches to replace such assumptions with more valid ones that are universallyaccepted by government and industry. Risk-based analysis and assessment activitiesshould be conducted in cooperation with EPA (residual risk), CRC, and the API airmodeling task force.

Table 2. High Priority R&D Topics for Environmental Performance

TopicImportance to

Industry

EnergySavingsPotential

Likelihood ofShort Term

SuccessPotential

Competitive Issue

Agreed-upon Method for RiskAnalysis/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

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 airtoxics. Remote sensing technology that is portable and cost-effective is most desirable.Research should be conducted in concert with instrument vendors, universities andgovernment laboratories (NASA, DOE labs). One possible future technology is the useof Vatellite techniques for detecting hydrocarbon releases remotely from space. Anincreasing number of satellite systems, having the capability to obtain high resolutionspectral data over a wide range of wavelengths (“hyperspectral remote sensing”), areexpected to be launched into orbit in the near future. Recent airborne studies sponsoredby the Geosat Committee Inc., a consortium of petroleum companies and others whouse remote sensing, have demonstrated that these techniques can facilitateenvironmental assessments of sites with hydrocarbon contamination. As these systemsbecome more widespread, information on hydrocarbon emissions from processing and

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storage areas can be collected more easily and more comprehensively. Earlierdetection and repair of leaks will not only decrease the direct loss of product, but alsodecrease the amount of energy and expense required to bring the product to market byavoiding costly cleanup operations.

Research to increase available data on particulates (PM 2.5) is needed to facilitatereductions in air emissions as well a help guide the regulatory process through better airquality data. New sampling and analytical techniques are needed to facilitate datacollection 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 oreliminate the effects of the feedstock (crude and its components) on refinerywastewater. Contamination from feeds include metals, sulfur, nitrogen, oil, and variousorganic compounds, some of which are toxic or hazardous. Process waters that comein contact with oils must sometimes undergo multiple water treatment steps before theycan be discharged and/or effectively recycled. One possibility is developing newtechnologies that remove contaminants from crude, which could help to mitigatecontamination further downstream. To enable greater potential for cost-effective recycleof refinery wastewaters, research is needed to develop new separation processes thatremove 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 areaof increasing concern. Designing new, cost-effective methods for cleaning up MTBE-contaminated sites is a high priority, along with more effective methods for assessingsite contamination. Bio-remediation is a potential solution for site clean-up. To makethis a more viable solution, research is needed to increase bioreaction rates, and todevelop cost-effective systems that may be suitable for large-scale operations.Technology advances are needed for both bioremediation and phytoremediationsystems that are conducted in situ. The multi-disciplinary nature of this work will requireexpertise in micro-biology, combined with chemistry and chemical engineering. Acollaborative activity is envisioned using universities and national laboratories.

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Current Situation

Inspection methodologies play a critical role in the overall energy, economic, safety,reliability and environmental performance of the U.S. petroleum industry. Effectiveinspection of equipment is vital to the construction and safe operation of distillationequipment, furnaces, heat exchange systems, reactors, storage vessels, pipingsystems, and a host of other unit operations. Testing and monitoring of equipmentintegrity, particularly while it remains in service, is essential to plant safety and optimumreliability as it pertains to energy efficiency.

Many of the currently available inspection technologies are intrusive or destructive, andmust be used when equipment is in ‘shut-down’ mode, rather than providing on-lineinformation about equipment integrity. For example, traditional strength testing ofmetals 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 temperatureor corrosive environments (heat exchangers, storage tanks, reactor vessels) typicallyrequires shut down of the process on a regular basis. Abnormal operating conditionssuch as equipment start-up and shut-down also tends to increase vulnerability. In theabsence of global inspection technologies, material evaluation often occurs locally. It istherefore necessary for the operator to use good engineering judgement to identify themost likely locations for material degradation. Failures also occur in places whereinspection 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 morereliable. Refineries would be highly instrumented to ensure structural integrity of

equipment, and would be monitoredusing global, on-line non-invasiveinspection techniques. Thesetechniques would allow forimmediate detection of loss ofcontainment, and provide earlywarnings for corrosion and potentialflaws in structural integrity. Inspection would be conductedautomatically, without people, andwould provide complete knowledgeof equipment conditions at all times.

Future Characteristics

{ Refineries are highly instrumented and controlled{ Global, on-line, non-invasive inspection is routine{ Immediate detection of loss of containment is

possible{ Fouling of heat exchangers is essentially eliminated{ Inspection does not require people, and provides

complete knowledge of equipment condition{ Downtime is minimized{ Refineries approach incidents related to loss of

containment

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Through highly effective inspection techniques, downtime would be minimized andequipment would approach total reliability. Maintenance would be performed accordingto routines predicted and suggested by regular global inspections and analysis, ratherthan on empirical or laboratory data. Refineries would continually work toward zeroincidents related to loss of containment. Processes in use would be inherently reliablewith respect to containment loss through a combination of better design, improvedmaterials, flexibility to accept a wide crude slate, and more effective operating andmaintenance practices. Crude flexibility enables improved energy efficiencies. Equipment, maintenance, and inspection in concert would be more reliable, and lesslikely to result in leaks or structural failures.

Performance Targets

The petroleum industry has identified a number of performance targets for inspectionand containment boundary integrity. An overall goal is to be recognized as one of thetop U.S. industries in the areas of safety and reliability, based on the Solomon Index. Tosupport this goal the industry will strive to achieve no significant containment boundaryreleases and eliminate unplanned downtime and slow downs. While safety and energyefficiency are the primary issues, the high cost of incidents as well as equipmentmaintenance are also major factors. To address the issue of cost, the industry hasidentified specific targets for reducing capital and operational losses as well as the costsassociated with inspection.

Improving inspection techniques will yielda number of benefits for the industry. Through better inspection methods, plantoperators will be better able to predict thehealth and integrity of equipment while itis in operation. This capability will allowfor early warnings of potential systemfailures, and enable better preventativemaintenance and servicing schedules tobe followed. The result will be lessunplanned downtime, fewer equipmentshutdowns, and more efficient operationof equipment – all of which reduce costs

for capital, labor and energy. Most important, the potential for catastrophic failures andother significant releases through the containment boundary will be greatly reduced.

Technical Barriers

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

Performance Targets for Inspection & Containment Boundary Integrity

{ Reduce capital and operational losses due to abnormalsituations by 90%

{ Become one of the top industries in safety and reliability{ Strive for zero “unacceptable” unplanned downtime and

slow downs throughout the industry{ Reduce labor costs of inspection and support by 75%{ Reduce cost of losses due to breach of containment to

less than $0.50/1000 EDC barrels (equivalent distillationcapacity)

{ Work toward a perfect safety record{ Achieve 75% reduction in safety incidents due to breach

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monitoring the mechanical and structural integrity and reliability of equipment. The mostcritical of these is the lack of accurate, reliable, cost-effective sensing instrumentationand technology for global on-stream inspection of equipment. Temperature andinsulation creates especially difficult problems for inspection of pressurized vessels. Remote sensors for mechanical integrity, which are highly desirable for ensuring thesafety 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 toinspect with any confidence (e.g., piping that is partially buried and equipment that islined 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 theattendant energy inefficiencies.

The inspection techniques that do exist are often destructive or intrusive, andinadequate for on-line non-destructive evaluation of equipment integrity. Of particularimportance is the lack of self-sensing methods to monitor for corrosion and residualstress. Sensing methods for inspection of metals at high temperatures and pressuresare also limited.

Another key barrier which limits theeffectiveness of maintaining andoperating heat exchange equipment isthe lack of cost-effective, reliablemethods for predicting the onset offouling and corrosion (see Section 3 formore on this topic). Failure of thisequipment due to fouling and corrosionis a particularly difficult and costlyproblem in refineries, where suchequipment comes into direct contactwith crude oil and its higher boilingcomponents. The greatest problemsoccur in the crude preheat train foratmospheric distillation, where everybarrel of oil that enters the refinery ispreheated.

Integrated systems that coordinate the results of sensing, measurements, analysis ofdata, and corrective responses are currently not available. The primary reason is thatthe 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 supportvalidation is often limited or simply not available. Models are lacking for equipmentfailure modes and reliability analysis, particularly those geared toward the uniqueconditions of petroleum refining.

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

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

Research Needs

Research and development needed to overcome the major barriers to the developmentand use of better inspection methods is shown in Figure 8. The highest priority researchneed is the development of global, on-line inspection technology (see Table 3). Globalinspection technology offers a step-out opportunity from current methodologies forassessing equipment integrity. Global implies that the inspection occurs at locationsremote from the probes. In contrast, conventional inspection methods limit theirexaminations to the immediate vicinity of the probe. For example, with radiographic (RT)methods, the inspection only occurs at the position of the film. With conventionalcontact ultrasonics testing (UT), the inspection occurs under the probe or immediatelyadjacent to it. When using penetrant testing (PT), the inspection only occurs where thedye materials and developer have been applied.

Five critical research areas include ultrasonics for pressure vessels, corrosion underinsulation inspection, buried piping inspection, equipment fouling detection, and modelsfor placement of improved corrosion probes. Work is already on-going on someadvanced global piping inspection technologies, including long range guided waveultrasonics and electrical pulsing. Although test results show potential promise for thesetechnologies, additional development is still required for advancement to commercialviability. Originally developed for piping inspection, it appears that these technologieswould be applicable for vessel inspection.

Global inspection methods for vessels are equally enticing as piping inspectiontechnologies. A global vessel inspection methodology would provide increasedconfidence regarding the detection of localized corrosion. With this improved confidencein the inspection, run lengths between maintenance turnarounds and manned vesselentries can be increased. Maintenance turnarounds are usually scheduled in order tomake equipment available for inspection. Increased operating run lengths improvesenergy efficiency by increasing utilization of employed capital equipment. The goal ofresearch in this area would be to deliver a prototype hardware/software system suitable

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TOP

Priority

HIGH

Near-Term(0-3Years)

Mid-Term(by 2010)

Long-Term(by 2020)

Develop techniques forrapid, effectiveinspection of heatexchanger tubes.

Reliably quantifycorrosion rates andmaterials deteriorationrates using limited datasets.

Develop the means forglobal, volumetricinspection of nozzlejoints.

Develop severalmethods for in situ non-destructive evaluation(NDE) of thedegradation of materialsproperties in-service.

Reduce corrosionproblems bydeveloping a cheap,easy method fortesting crudecorrosivity.

Develop >2 methods formonitoring the health ofequipment : failuremodes and optimizedmaintenance times.

Design non-contactsensors and measurementtechnologies for on-streaminspection of welds.

Develop newmethods for in situmeasurement ofresidual stress onthe most commonmaterials ofconstruction.

Improve maintenanceprocedures and failureanalysis for hightemperature equipmentthrough techniques for on-stream refractoryinspection.

Develop smartsystems foranalysis of equip-ment inspectiondata.

Develop technology for reliable, global on-stream inspection of equipment, with focuson 5 critical areas: ultrasonics for pressurevessels, global corrosion-under-insulationinspection, buried pipe, equipment fouling,and placement of improved corrosionprobes.

Develop methods for on-stream inspection of aircooler tubes.

Figure 8. Research Needs for Inspection & Containment Boundary Integrity

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for vessel (and optionally piping) inspection. The technology would provide operatorswith the confidence of increasing run lengths by offering the capability of detectinglocalized corrosion while the equipment was still in service. On insulated vessels, it isenvisioned that global inspection methods would maximize inspection coverage withminimal insulation removal. Ideally, these inspection methods would be able to detectboth internal and external corrosion.

Another high priority is detection, prediction, and prevention of corrosion. Research isneeded to develop the capability for reliable quantification of corrosion rates, using onlylimited data sets. Simple, effective tests to assess the corrosive properties of crude aswell as higher boiling components are also needed.

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

TopicImportance to

IndustryEnergy Savings

PotentialPotential

Competitive IssueChances of Funding

from Suppliers

Global On-stream Inspection of Equipment High High Low Medium

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�����)XHOV�DQG�)XHO�'HOLYHU\�

Current Situation

Production and use of transportation fuels have long been associated with concernsabout emissions and energy conservation. Historically, these concerns have beenaddressed independently, rather than as part of an integrated system. For example,emissions concerns have driven the establishment of tailpipe standards for heavy-dutyengines and light-duty motor vehicles. Energy concerns have been addressed bygovernment-mandated fuel economy standards for light-duty vehicles, and by consumerdemands for lower operating costs for heavy-duty vehicles.

In some cases, steps taken to address emissions concerns can exacerbate energyconcerns, and vice versa. For instance, the use of reformulated gasoline (RFG) toreduce vehicle emissions can be detrimental to energy conservation due to increasedenergy expended in producing and transporting the fuel, and reduced fuel economy thatresults from its use. Similarly, lowering sulfur levels in gasoline and diesel fuel mayreduce tailpipe emissions, but at a cost of increased energy usage in producing thesefuels. Optimized strategies for dealing with emissions and energy concerns requireintegrated 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 retaillevel (i.e., at the gas pump), as well as potential environmental and safety impactsduring transportation of fuels from the refinery to the customer. To date these concernshave been addressed through incremental improvements, such as better valves, orpump handles that reduce or prevent releases of volatile hydrocarbons.

Petroleum products are expected to be a predominant fuel of choice for consumers wellinto the next century. Their makeup is continually changing, however, to meet newregulatory demands. Other factors influencing fuels include the decreasing quality ofavailable crude feedstocks, and the development of alternative non-petroleumtransportation fuels (electricity, biomass).

Future Characteristics

In the future, fuel delivery systems would be safer and easier to use. Retail fuel deliverysystems for gasoline and other transportation fuels would be entirely sealed, and totallyautomated, requiring no human touch for delivery. Distribution systems would support abroad variety of products as well as entirely new fuels.

Petroleum refineries would be highly flexible, producing the fuels demanded byconsumers, 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 maximizediversity and profitability, with more refineries operating as integrated fuel/chemicalindustries. Refineries might be producing liquid hydrocarbon fuels for fuel cell vehicles,as well as other alternative fuels. Fuels produced would be clean-burning, and vehicleswould be designed to produce fewer emissions.

Performance Targets

The industry has identified a number of performance targets to improve fuel deliverysystems and create the high performance, safe fuels desired by consumers. The

industry will strive to effectively balancethe need for cleaner products withcustomer demands for highperformance. An important componentwill be taking steps to prevent theimpacts to human health and theenvironment from fuel exposures andcombustion of fuels in vehicles.

Technical Barriers

There are a number of barriers to better fuel delivery and reduced vehicle emissions. Ingeneral, there is no integrated, systems approach being taken to develop enginetechnology with lower mobile source emissions. Further, the industry has littleknowledge in advance on how new or reformulated fuels are going to actually perform inadvanced technology vehicles (prototypes are not available for testing).

Sulfur tolerant catalysts or other sulfur-tolerant control technologies, which could reduceemissions in vehicle exhaust/tailpipes, have not been successfully developed. Currenttechnology for control of nitrogen oxides and particulates from diesel-fueled vehicles isalso inadequate. Finally, emission controls now in place on vehicles have a tendency todeteriorate.

Fuel delivery systems at service stations are not leak-proof, and contribute to emissionsof volatiles. The open systems currently in place are sometimes inadequate, and releaseemissions during refueling of storage tanks.

Performance Targets for Fuels & Fuel Delivery

{ Reduce emissions from mobile sources{ Create products that are cleaner, satisfy customer

needs, and meet performance requirements { Maintain product quality all the way to the customer{ Reduce expenditures for product quality testing by 75%

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TOP

Priority

HIGH

Near-Term(0-3Years)

Mid-Term(by 2010)

Long-Term(by 2020)

Develop a systemsapproach tofuel/technologyinteraction.

Review mobile transferof all hazardousmaterials and developrecommendations toreduce exposure fromfuels handling.

Design equipment thatis leak-proof and easyto install to improve thesafety and performanceof fuel delivery systems.

Develop sulfur-tolerantemission control systemsin diesel engines.

Study the effects ofalternative fuels,particularly low-sulfur fuels,on vehicle emissions.

Design distributionmechanisms to redirectinventory levels.

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

Review the deliveryprocess, from refinery tocustomers, to identifysources of emissions.

Develop >3 sulfur-tolerant catalysts.

Explore the use ofautomation to reduce oreliminate tank truckoverfills.

On-going

Test new versions ofreformulated fuels, verylow sulfur fuels toquantify emissions.

Research and Development Needs

Research and development needed to improve fuel delivery systems and reduce vehicleemissions are shown in Figure 9. R&D is categorized as top and high priority, andaligned by time frame for expected results. Arrows describe the main relationshipsbetween research.

Figure 9. Research and Development Needs for Fuels and Fuel Delivery

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As discussed earlier, an industry priority is to use an integrated systems approach thatcombines requirements for fuel efficiency with a desire for reduced emissions (seeTable 4). Research is needed to reduce engine exhaust emissions and fuel evaporationemissions. The approach taken may focus on developing better controls, ormodifications to fuel specifications. Research is needed to assess how new low-sulfurreformulated fuels will perform in terms of emissions, and alternately, how to reduceemissions from higher sulfur fuels.

Severe sulfur reduction from both gasoline and diesel fuel is generally regarded asproducing 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 sulfurlevels 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 chemicalreductant to transform NOx to N2. Often, this reductant is the hydrocarbon fuel itself,thereby resulting in an obvious fuel economy penalty. Development of improvedreductants, or other NOx-control technologies, could lead to energy savings.

For improved fuel delivery systems, the ultimate objective is better systems thatminimize or eliminate leaks from the storage and delivery of fuels. The current deliveryprocess, 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 systemscan be retrofitted.

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

TopicImportance to

IndustryEnergy Savings

PotentialLikelihood of Short

Term SuccessPotential

Competitive Issue

Systems Approach to FuelEfficiency/Emissions Reductionand Control

High High Low Low

Relative Energy Use by Major Refinery Processes

tpartnershipA platform for technology research,

development, and deployment

Cooperative advantages

The Industries of the Future strategy enhances the petroleumindustry’s efforts to

• Ensure that technology priorities are identified andadvanced.

• Strategically invest in R&Dand new technologies thatwill drive higher levels ofperformance.

• Leverage scarce funds forresearch.

• Increase cooperation amongthe business, government,and research communities.

2

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.

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.

Petroleum refining is unique among manufacturing industries from an energy stand-

point. It is the country’s single largest source of energy products, supplying 40 per-

cent 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.

700

500

300

100

0Coking Catalytic

HydrotreatingAlkylation Catalytic

Reforming

Trill

ion

Btu

annu

ally

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

Fluid CatalyticCracking

VacuumDistillation

AtmosphericDistillation

3

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 industry-

defined vision, Technology Vision 2020.

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

and Refiners Associations, has identified the technical areas

of greatest concern to the industry and developed a technol-

ogy 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.

p

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 designunit was integrated into an existing operation. It uses highly compact heat and mass transfer equipment alongwith state-of-the-art materials. Waste-heat from thereformer 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 replacedby compression refrigeration, a simpler system which isless capital-intensive and easier to operate. However, theability to utilize free waste-heat allows absorption refrigera-tion to gain the economic advantage over compression.

OIT partnered with national laboratories and private indus-try to demonstrate that ammonia absorption refrigerationcan effectively utilize refinery waste-heat to recover valu-able resources. The technical and economic results of thisproject show that government-industry partnerships doprovide valuable benefits to the industry and the nation.

Vision

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

Roadmap

The goals and research prioritiesoutlined in Technology Roadmapfor the Petroleum Industry, Draft2000, form the basis for makingnew research investments byboth government and industry.

Implementation

Industry has targeted technologydevelopment in the areas ofenergy and process efficiency,environmental performance,materials and inspection technol-ogy, and the refinery distributionsystem and retail delivery services.

Path Forward

Changing market and technical issueswill be considered periodically to ensurethat research priorities remain relevantto the needs of both the petroleumindustry and its customers.

bresultsHigh-priority research needs

Based on industry-defined priorities and recommendations, OIT awards cost-

shared 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 col-

laborative 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 manu-

facturing 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.

4

5

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

• Fouling Minimization

• Robotics Inspection System

• Force Internal Recirculation (FIR) Burner

• Radiation Stabilized Burner

New separation technology for refining

Government and industry partners are researching high-performancemembranes as alternatives to conventional energy-intensive distilla-tion processes. Pervaporation and reverse-selectivity membranes arebeing tested for hydrocarbon separation and hydrogen recovery.Potentially, membrane separation could be 20% more energy efficientthan distillation.

Environmental Performance

Materials and InspectionTechnology

• Low-Profile Fluid Catalytic Converter (FCC)

• Computational Fluid Dynamic Model of FCC

• Gas Imaging for Leak Detection

• Advanced Process Analysis for Refining

Micro Gas Chromatograph ControllerGasoline BioDesulfurization ProcessEnzyme Selectivity for DesulfurizationCatalytic Hydrogenation Retrofit ReactorNew Nanoscale Catalysts Based Carbides Selective Catalytic Oxidative DehydrogenationOxidative Cracking of Hydrocarbons to EthyleneAlkane Functionalization CatalystsLow-Profile Catalytic CrackingSelective Surface Flow Membrane Catalytic Hydrogen Selective MembraneAdvanced Process Analysis for RefiningMulti-phase Computational Fluid DynamicsGas-Phase Thermodynamics ModelingMembrane Reactor for OlefinsMembrane to Recover Olefins from Gaseous StreamsEnergy-Saving Separations TechnologiesBestPractices

PSA Product Recovery from ResidualsRefinery Process Heater SystemFlame Image Analysis and ControlThermal Image Control for CombustionRotary Burner DemonstrationLow-NOx—Low-Swirl BurnerInternal Recirculation BurnerNovel Low-NOx Burners

Advanced Materials for Reducing EnergyLaser Sensor for Refinery OperationsLaser Ultrasonic Tube Coke MonitorMechanical Integrity Global InspectionGas Imaging for Leak DetectionCorrosion Monitoring SystemMetal Dusting PhenomenaIntermetallic Alloy for Ethylene ReactorsAlloy Selection for High Temperatures

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

Energy and Process Efficiency

Research and Development Projects

oresourcesIntegrated support for today and tomorrow

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, BestPracticesinitia-

tives, and Financial Assistance. In addition, State-Level

Industries of the Future programs have begun in a num-

ber of states to bring the energy, environmental, and eco-

nomic 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-tempera-

ture industrial environments. One project with direct appli-

cation 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 operator-

independent 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 identi-

fying 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 consump-

tion. The West Coast refiner used this program to identify and justify

upgrades on motors, motor drives, and power recovery turbines.6

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 assessmentsto 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 demon-

strated with help from NICE3.

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.

How to get involved

Through Industries of the Future partnerships, U.S. petroleum industrycompanies reap the competitiveadvantages of more efficient and productive technologies and, in turn,contribute to our nation’s energy efficiency and environmental quality.

To participate:

• Monitor the OIT PetroleumIndustry Team’s Web site fornews and announcements ofR&D solicitations, meetings and conferences, and researchprojects.

• Team with other organizationsand respond to solicitations forcost-shared research.

• Begin saving energy, reducingcosts, and cutting pollution todayby participating in any of theBestPractices programs.

• Take advantage of OIT’s extensiveinformation resources, includingfact sheets and case studies,training, software decision tools,searchable CDs, newsletters, andpublications catalog.

• Attend the biennial IndustrialEnergy Efficiency Symposiumand Expo.

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

7

www.oit.doe.gov/petroleum