Transcript Crude Oil Blending

Crude Oil Blending
James Ignatovich – Area Manager, WGC
Intertek - Commodities Division
total customer focus
www.intertek.com
Crude Oil Blending
•
Transportation and Logistics
•
Pipeline economics
•
Quality Management
total customer focus
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1. Blending Heavy Crude for Pipeline logistics
total customer focus
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In-line blending for transportation
Heavy crude (A)
Viscosity!
Pour Point!
Receiver (B)
Density!
Horsepower
Pipeline
Heavy crude
$$$$
AsThe
theefficiency
viscosity of
increases,
moving crude
the flow
oil through the
thisOne
pipeline
pipeline
solution
decreases
is totally
is to acquire
dependent
and the
a light
pressure
on crude
some or
of its
As theproperties
density
increases
soDENSITY,
does under
the VISCOSITY
amount
of horsepower
required
to push
the
increases.
physical
All
pipelines
including
must operate
theanother
Maximum
AND
acceptable
Operating
POUR
hydrocarbon
POINT
Pressure
they
that
are
iscrude
through
will cost
morereadily
on
an incremental
pipeline
tariff!
designed
for,the
so pipeline….which
it may not be possible
to pump
untreated
accessible
high viscosity
and
useproduct
an
inline
at all.
blender to create a blend with a lower
Density, Viscosity and Pour Point.
Light crude or
other diluents
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In-line blending for transportation
Heavy crude (A)
Viscosity!
Pour Point!
Density!
Medium
crude blend
$$$$
Receiver (B)
Pipeline
Inline blender
One
The solution
problematic
is to physical
acquire aproperties
light crude
will
or
another
now be acceptable
eradicated hydrocarbon
and the blendthat
will is
be
readily
easily pumped
accessible
to and
the reciever.
use an inline
blender to create a blend with a lower
Density, Viscosity and Pour Point.
Light crude or
other diluents
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2. Sharing a Common Pipeline
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Shared Pipeline blends
Medium sour
•
•
• you
Using
the
benchmark
value
Here
see wells
three
platforms
Now let’s
say
with
differing
can
be
calculated
how
•drilled
And
the owners
of the
all
producing
the
same
quality
Ait sweet
crude
well
and
quality
are
nearby….
the
sour
crude
lower
value
sour is
stream
crude. Itamuch
is
all
comingled
and
Are
the
owners
going
to
sour
crude
well
are
may
not
want
to give up
decreasing
the
streams
they
will
connect
pumpedconstructed
toNo,
shore
via
amiles
single
lay
miles
and
close
byof
Medium sour
such
compensation!
and
the
owner
to this
common
pipeline.value
The
allocations
will will be
pipeline
to
keep
the
be penalized.
based
metered
streams
One solution to the allocationonly
of funds
ispipeline.
to onsegregated?
Sourfocuses
$$$
volumes.
set up a quality bank that
on key
quality parameters for the medium sour
crude.
Each quality parameter will set a benchmark
for the value for the original crude.
Common
Carrier
Medium sour
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Sweet
$$$
•
•
But
what about
Likewise
it canthe
beowners of
the
higher value
calculated
howstream?
much the
They
will
want
to
be
sweet crude is increasing
compensated for the sweet
the
value and the owner
product they are introducing to
will
be compensated.
the system.
3. Blending Crude Oil for Margin Optimization
(Quality Management)
total customer focus
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•
The “B” word…….Blending high quality crude oil with low
quality crude oil in order to change the value of the product has
been around for decades.
•
It has been a taboo subject in years past and some of the
crude oil blending that took place was very controversial
resulting in what was known as “Dumb Bell” crudes.
•
The industry standard for defining crude oil quality was by
analyzing and measuring only two parameters, Gravity and
Sulfur.
•
Therefore the quality could be easily manipulated by blending
a very heavy crude with a very light crude.
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Historical and controversial dumb
bell crude blending
•
As this blend passes
through the refinery units
the metals would
Heavy Sour
Crudedeactivate or “poison”
catalysts and upset other
sensitive equipment
V
•
Blending a heavy crude with a
• condensate
But the other
characteristics
and
would
give a
parameters
be very
resulting
blendwould
that has
different
a desirable
crude
Gravity
andfrom
Sulfur
parameters
heavy metals!!
theoil….such
same as aasdesirable
sweet
crude.
• • This
The
didheavy
not fair
and
well
light
with
product
refiners
andyields
because
would
of be
thisvery
the high
COQA
butand
other
theindustry
desirable
associations
middle distillate
pushed
for yields
more parameters
would be very
to be
low.
Fe analyzed
Hence when
the term
defining
“Dumb
the
bell”
quality
Ni of crude
crude oil.
Condensate
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Pipeline Specifications
•
•
Here you can see some typical
Pipeline
crude
results
for asale
virginspecs
sweet crude
that meets spec along
with
Test
Unit
other domestic and foreign
crudes that do not meet spec.
API:
Min
Max
34.0
41.0
Here you can see a typical sweet
crude pipeline spec taken from a
public website.
with the
Medium AlongHeavy
Virgin
LS
traditional
Gravity
and
Sulfur
we
Sweet
Sour
Sour
Cond
now have other specifications.
36.1
25.0
29.0
45.0
MCRT:
•%WtIf a marketer has the
use of0.336
a blending0.400
0.400
1.90
0.05
facility and has access to each of these
•2.98The light2.62
ends and residue
specs20.0
%w/w
6.0
1.40
crudes they can blend them together
and
still
should eliminate “Dumb bell”
%w/w
8.6crudes and
2.9
potentially4.0
meet all12.0
of the requirements
of the total 23.0
metals spec 0.1
the pipeline and the2.0
refinery. 1.7(V, Ni & Fe)
will stop heavy
metals %Wt
0
-
Metals:
mg/kg
TAN:
mg KOH/g
Sulfur:
Light Ends:(C2-C5 total):
Sim Dis: (1020+):
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8.0
0.70
from poisoning the catalysts.
3.3There is 4.2
also an acid75.0
number
specification.
0.37
0.28
0.51
5.0
0.05
Tank blending
Virgin Sweet 0.33% Sulfur
$100
Pipeline Spec 0.4%
Sweet Blend $100
MARS 6MB
EIC 28MB
SAH 38MB
•
Virgin crude oil available for the
operation of supplying a 0.40%
sulfur sweet crude blend
through a pipeline.
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Virgin sweet 200MB
•
Target blend for
contract sale
Tank blending
Virgin Sweet 0.33% Sulfur
$100
Pipeline Spec 0.4%
Sweet Blend $100
MARS 6MB
LS Cond 0.05% Sulfur
$95
EIC 28MB
LS Cond 38MB
238MB
Sweet light Blend
0.29%200MB
Virgin Sweet
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Tank blending
Virgin Sweet 0.33% Sulfur
$100
Pipeline Spec 0.4%
Sweet Blend $100
MARS 6MB
LS Cond 0.05% Sulfur
$95
Med Sour 1.00% Sulfur
$90
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Med Sour 28MB
266MB
238MB
Sweet
Blend
Sweet0.36%
light Blend
0.29%
Tank blending
Virgin Sweet 0.33% Sulfur
$100
Pipeline Spec
Sweet Blend $100
Heavy Sour 6MB
LS Cond 0.05% Sulfur
$95
Medium Sour 1.00% Sulfur
$90
Heavy Sour 1.90% Sulfur
$90
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272MB
266MB
Sweet
Blend
Common
Carrier
Sweet
Ready
forBlend
Pipeline
0.36%
Virgin Sweet 200MB
$98.05/Bbl
Gross profit $530k
Tank Sampling
•
•
If this shore tank was to scale
then this tiny, little dot would
…..this
shows
how
difficult
represent
1000
quarts
of it can
be andThis
howmeans
important
is to
product.
that itthe
get good
analysis
we representative
run is on a sample
samples
from
crude
shore
th
1000 the size ofathis
dot……..
tank
300,000 Barrel Shore Tank
300,000 x 42 = 12,600,000 Gallons
12,600,000 x 4 = 50,400,000 quarts
The samples would go back
to our lab for testing. Based
on the results the lab would
produce a Report of Analysis
for the whole tank based on
that one quart sample.
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.
•
Here is a representation of a
300MB crude oil shore tank
that our inspector would climb
and take quart samples from
each level (U/M/L) along with
running averages.
•
A lot of pipelines converge at this
• area
Here
is aMidwest.
map of the
in the
At a little
crude
oil
pipelines
in Known
town called Cushing, OK.
North
locally
asAmerica.
the “Pipeline
crossroads of the world”. The
large crude oil terminal here has
been upgraded and expanded
(50M Bbls) recently for mass
storage and blending of crude oil.
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Intertek Crude Oil Laboratory,
Cushing, OK
Crude oil and fuel testing
Intertek has committed to opening a full
crude oil laboratory in Cushing, OK.
Capabilities include almost all ASTM
crude oil methods, including
GC light ends & HTSD
Metals by ICP, Nitrogen, Sulfur,
Gravity, RVP, Chlorides
and many, many more….
Opening March 2011
total customer focus
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Questions?
Bruce Carlile – 832-861-4053
[email protected]
James Ignatovich – Area Manager, WGC
Intertek Commodities Division
total customer focus
www.intertek.com
www.intertek.com