Evaluating Canadian Crudes in US Gulf Coast Refineries
Transcript of Evaluating Canadian Crudes in US Gulf Coast Refineries
Evaluating Canadian Crudesin US Gulf Coast Refineries
Pat Swafford
Spiral Software
Crude Oil Quality Association Meeting
February 11, 2010
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Introduction Introduction to Spiral Software
Overview of typical USGC operations
Changing the USGC crude slate
Comparison of Canadian crude grades with USGC typical crude mix
Evaluating Canadian crudes from a quality perspective
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Introduction to Spiral Spiral provides tools and services that enable our clients to
make the best choices in trading and refining crude oil
Over 60 client companies spanning integrated oil companies, refiners, consultants and trading firms
Global implementations by BP, Chevron and Shell
Application examples:o Enterprise crude oil knowledge management: Intuitive tools
with strong inter‐element links, allowing users to share expertise and consistent data across business areas
o Feedstock screening and ranking: Fast, transparent models for screening crudes and identifying optimal blends—minimizing processing risk and maximizing margin
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OVERVIEW OF USGC OPERATIONS
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Typical USGC Refinery ConfigurationProcess Capacity (bpd)
Crude 178,000
Vacuum 82,000
Coker 28,000
FCC 59,000
Reformer 36,000
Hydrocracking 17,000
Alkylation 12,000
Isomerization 5,000
Sulfur 400 tpd
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Typical USGC Refinery Flowsheet
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Typical* USGC Crude Mix
OPEC 55%
Non‐OPEC 45%
API Gravity 29.5
Sulfur (wt %) 1.64
* December 2008 through November 2009 data from EIA website
Country of Origin Percentage
US 14.0
Algeria 4.6
Angola 3.4
Iraq 3.9
Kuwait 2.6
Nigeria 8.4
Saudi Arabia 9.7
Venezuela 13.2
Brazil 2.3
Canada 1.8
Colombia 2.7
Mexico 17.1
Russia 5.2
United Kingdom 1.5
Other 9.4
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CHANGING THE USGC CRUDE SLATE
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USGC Crude Mix Will ChangeThe proposed Keystone Pipeline expansion will make 500,000 barrels per day of capacity available to move Canadian crude oil to the US Gulf Coast by 2012.
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Adding Canadian Crudes to the USGC Crude Slate Refinery configurations are unique and typically geared
toward a certain type of crude slate
Some of the more challenging grades of Canadian crudes cannot be processed in high percentages in a typical refinery
Understanding the possible combinations of crudes and the acceptable amounts of each gives refinery planners and traders information that can be used to make economic decisions
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COMPARING CANADIAN AND USGC CRUDES
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Comparison – USGC vs Canadian Grades
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Synthetic Crude vs Typical USGC mix
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Dilbit crude vs Typical USGC mix
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Medium sour vs Typical USGC mix
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Synthetic Crude Diesel CetaneComparison to world crudes
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Synthetic Crude Residue YieldComparison to world crudes
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Synthetic crude HVGO UOPKComparison to world crudes
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Heavy Sour Crude Residue YieldComparison to world crudes
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Heavy Sour Crude LSR YieldComparison to world crudes
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More than just LP evaluation Every refiner makes crude purchase decisions on the basis of
refinery LP model economics (and rightly so)
Anytime opportunity crudes or crudes outside the normal operating envelope are considered, a quality evaluation outside of the refinery LP model is warranted
Refinery LP models typically don’t consider all of the quality aspects of a crude oilo Acidity
o Other properties
Refinery LP models solutions identify a single‐point of operation. The refiner should consider the entire feasible operating envelope of a crude oil before making the purchase decision.
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EVALUATING CANADIAN CRUDES ON A QUALITY BASIS
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Crude Approval CriteriaAll refineries have a criteria for accepting crudes for processing.
•Refinery configuration
•Process constraints
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Testing Canadian Crudes in the USGC base slate
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Analyzing the Limiting Criteria of Unacceptable Blends
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Analyzing the Range of Feasible Blending Options
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© 2010 Spiral Software Limited. All rights reserved. Reproduction in full or in part is prohibited without written permission.
© 2010 Spiral Software Limited. All rights reserved. Reproduction in full or in part is prohibited without written permission.
© 2010 Spiral Software Limited. All rights reserved. Reproduction in full or in part is prohibited without written permission.
Crude Quality Analysis is Important Crude oil properties
o Form the basis of crude oil descriptions in decision support fortrading, planning and scheduling
o Have a major impact on the value of crudes
o Differ not only between grades, but may have unexpected synergies with other grades that enable refineries to maximize their margins
Accurate, comprehensive, current, consistent and shared crude property data is a prerequisite for effective business processes
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Conclusions