KBC IoE Webinar - Shale or Tight Oil Processing

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Shale oil quantities are increasing and require special consideration as they are processed into transportation fuels. Most refineries require limited refinery investment modifications to process shale oil.

This free 45-minute webinar covers:
- What is shale or tight oil?
- Market drivers
- Specific refinery impacts, based on experience
- Plant modification implications
- Crude blending
- Conclusions

Scott Sayles is an Executive Consultant with KBC. He has over 30 years of refinery and petrochemical experience, ranging from refinery plant manager to research engineer. Sayles has 15 patents and holds degrees from Michigan Technological University (BSChE) and Lamar University (MSChE).

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KBC IoE Webinar - Shale or Tight Oil Processing

  1. 1. Shale or Tight Oil ProcessingScott Sayles, Executive Consultant 20 November 2012 © 2012 KBC Advanced Technologies plc. All Rights Reserved.
  2. 2. Agenda> What is Shale or Tight Oil?> Market Drivers> Refinery Impacts, Experience> Plant Modification Implications> Conclusions 20 November 2012 PROPRIETARY INFORMATION 2
  3. 3. What is Shale or Tight Oil?> Shale or Tight Oil are terms for the geological formation where oil is found – The name does not infer quality of the crude oil – Location of the deposit determines the qualities – Tight Oil can be found around the world – Focus here will be on North America production Shale Oil 2012 AFPM FCCU Seminar Houston Texas Shale NGLs 20 November 2012 PROPRIETARY INFORMATION 3
  4. 4. What is Shale or Tight Oil?> Current situation is the quality and volumes are variable – API ranges from 20 to 55 – Sulfur generally low and nitrogen – Paraffin generally high – Heavy metals are low (Ni &V) – Alkaline metals are high – Lead, Arsenic and Barium are elevated – Filterable solids increases with decreasing API – Production chemicals add contaminents 20 November 2012 PROPRIETARY INFORMATION 4
  5. 5. Market Drivers> 65 to 70 refineries have access> Limited pipeline to local refineries> Rail in North America – Reaches to the east coast – Train size becomes limiting> Truck to distribution points and to local refineries – Cushing is reported to collect 36,000+ BPD (CVR Energy 2012) – Other locations are similar> Other options being explored: – Barges on Mississippi – Saint Laurence Seaway shipments 20 November 2012 PROPRIETARY INFORMATION 5
  6. 6. Market Drivers> It’s not all oil.> Gas production is high for these fields> Cheap natural gas has changed the energy economics> SMR Hydrogen is low cost> Energy efficiency or savings projects have to be carefully evaluated – Cost is lower – May allow internal production for improved refinery reliability 20 November 2012 PROPRIETARY INFORMATION 6
  7. 7. Overall Impact Problems with cold flow properties Low Cost Natural Gas Lower octanes/yields Hydrotreated Utilities Naphtha from Utilities to Suppliers Units FCC Naphtha Utilities Alkylate Gasoline Waxy, Virgin Naphtha NHT Catalytic Reforming Reformate Pool Unit Fouling Wild Naphtha HT Jet Oil Movement and Storage (OMS) Kerosene Kerosene DHT Naphtha Naphtha Crude Middle Distillate Tower Jet and HT Diesel Diesel Pool ATM Gas Oils Diesel (ULSD) Crude Crude DHT Desalter Synthetic Feedstock Jet/Diesel GOHT or HCU Vacuum Ohds Cutter Stock for Fuel Oil FCC Gas Oil Low Utilization CFHT Naphtha Fuel Oil Pool Vacuum Vacuum Vacuum Gas Oils Resid Tower Coker Gas Oils FCCU Wild Naphtha Atmospheric FCC Resid C3s and C4s Low Yields Coker C3s and C4s Alkylation Vacuum Resid Coker Coke High olefins Cracks well Low Rate 20 November 2012 PROPRIETARY INFORMATION 7
  8. 8. Refinery Impacts, Experience Crude A and Seven B Crudes 18> Tankage 16 Crude B1 14 – Incompatibility 12 Crude B2 Crude B3 Crude B4 Blending Index Number 10 Crude B5 – Wax deposition Crude B6 8 Crude B7 6> Desalter 4 2 Incompatible Region – Wax causes stable emulsions 0 0 5 10 15 20 25 30 35 40 45 50 55 Percent of Crude B in Blend 60 65 70 75 80 85 90 95 100 – Fouling CER, Cold Eyes Review Technology GAP – Salt carry-over 1 2 Overhead Vapors to Overhead Condenser Reflux from Reflux Pumps Operating GAP 3 4 5 6 – High filterable solids 7 8 9 10 KBC Benchmark 11 12 Current 13 Kerosene P/A 14 Kerosene Vapor from 15 Kerosene Stripper 16 17 Kerosene Draw to outlet Desalter 18 Kerosene Stripper 19 20 Kerosene Reflux from inlet Kerosene Stripper> Crude unit 21 m 22 u 23 d 24 w 25 a 26 s 27 h Diesel Vapor from 28 Diesel Stripper 29 30 Diesel P/A 31 Diesel Draw to 32 Diesel Stripper Diesel Reflux from 34 Diesel Stripper 35 – Preheat fouling 36 37 38 39 40 41 42 HGO Vapor from HGO Stripper 43 44 HGO P/A 45 HGO Draw to 46 HGO Stripper 47 HGO Reflux (Wash Oil) from – Tray fouling in upper sections 48 HGO Stripper 49 50 51 52 Overflash Draw Crude Feed from Crude Heater 53 Overflash Return 54 55 56 57 58 – Light ends lift limitations 59 Steam In Bottoms to Vacuum Heater – Crude heater undersized 20 November 2012 PROPRIETARY INFORMATION 8
  9. 9. Refinery Impacts, Experience> Vacuum tower – Low yields – Waxy – Vacuum heater oversized> FCCU (See 2012 AFPM FCCU Seminar) – Cracks well – Good selectivity – Lower octane – Lower slurry Net Effluent from Suction Trap Drum A> Olefins processing about the same Light Olefins Acid Condenser Refrigerant Net Effluent to Settler Separator Mixed Butanes Acid Wash Drum Refrigerant B Compressor Makeup Isobutane Feed/Effluent Exchangers Spent Acid to Acid Blowdown Drum CW Alkaline Water Isobutane Economizer – Conversion increase Contactor Feed C Recycle Fresh Acid Coalescer CW Refrigerant Recycle Total Condenser Alkaline Water Mixer Wash Drum Mixer – Heat balance? Flash Suction Drum Trap Refrigerant Accumulator Acid Wash Water Drum Net Effluent Wash Drum B A Depropanizer Fresh Acid Feed Pumps Isobutane Fresh – Atmospheric resid? Caustic Overhead Condenser Mixer Circulation Pumps Overhead CW Condenser Overhead Receiver Water Caustic Wash Drum CW Depropanizer Overhead Recycle to Bottoms Receiver Contactors Coolers C CW To Isobutane Storage Depropanizer Reflux/Product Circulation Pumps Propane Pumps Product Deisobutanizer to Storage Reflux/Product Pumps Product Cooler CW Reboiler Feed/ Steam Water Bottoms Steam Wash Drum Exchangers Reboiler Condensate Condensate Bottoms Effluent to Debutanizer Spent Caustic 20 November 2012 PROPRIETARY INFORMATION 9
  10. 10. Refinery Impacts, Experience> Hydroprocessing – Low utilization Hydrogen-rich Make-up Gas Reactor(s) H2 Rich Off Gas – Increased run lengths CW to Fuel Gas> Distillate (DHTU) Kerosene Feed Feed Feed/ Effluent Fired Heater CW Overheads receiver Pumps Exchanger – Cold flow properties are high Possible Light Stabilizer Liquid Overheads – Dewaxing catalyst Tower Separator Reactor Effluent Stripper CW Cooler Hydrotreated Tower Distillate Product – Modification to fractionation cut Stripper Bottoms Pumps CW points H2-rich Heavy Naphtha Hydrogen Makeup Recycle Gas> Gas Oil Hydrotreaters (GOHT) Compressor H2-rich Gas H2-rich Purge Light Distillate Lean Amine Heavy Distillate Amine Absorber – Treating severity potential to meet Reactor Reactor (with Trays and Packing) Main Fractionator (with Trays and Packing) Fat Amine Net Bottoms tier 3 sulfur HC Feed Feed/ Fired Heater H2-rich Off-gas HPHT Overhead Cooler HP Low Temp Separator Sour Vent Gas Light HC Liquid Effluent CW Charge Pump Exchanger (LPG/Naphtha) – Low sulfur in regenerator flue gas Wash Water Wash Water Pump HP LP Low Temp Stripper Tower (with Trays and Packing) Separator Separator Reactor Effluent Coolers CW Fired Heater LP Separator 20 November 2012 PROPRIETARY INFORMATION 10
  11. 11. Refinery Impacts, Experience Reactor 3 Reactor 4 (tail position)> Naphtha Reformer Reactor 1 Reactor 2 Continuous Regenerator (for Reactor 4 only) – Paraffinic low octane Hydrogen-rich Gas – Higher gas production Heater 1 Heater 2 Heater 3 Heater 4 Air Cooler Separator Unstabilized Reformate> Coker Feed/Effluent Exchanger Recycle Feed Compressor Charge Pump Quench Off-gas Light Slop Oil Blowdown Steam from Heavy Slop Oil – Low VR yield System Water Quench Coke Coke Coke Coke Recycle Water Drum Drum Drum Drum Overhead Offline Online Offline Online Condenser Overhead Wet Gas Trim Cooler 1 2 3 4 CW Overhead – High API Drum Coker Fractionator Sour Water 4-Way 4-Way Valve Valve Coker Naphtha Reflux Pump Steam – Low CCR Recirculation LCGO Feed Fresh Feed Stripper Pump Feed Velocity Medium Vessel Coke Feed/LCGO Drum HCGO Exchanger Stripper Steam Furnace Vapors LCGO Product> WWTP Fuel Gas/ Fuel Oil Heater Charge Pump Feed/HCGO Exchanger HCGO Product Steam Steam P/A Generator Exchanger – Impacted by solids under-carry Desalter Water Spent Caustic P/A Pump BFW from Oil – Alkaline metals Oily Water System API to Separator Incinerator Depurator Cationic and Sour Water Spent Caustic Anionic Polymers Oil Solids Flow EQ DAF Trains Phosphoric Acid and Activated Charcoal Biomass + Activated Sludge Caustic Water Reuse Supply Aeration Water Reuse Return Cooling Tower Blowdown Basin Sulfuric Acid to Polishing River Sump Ponds 20 November 2012 PROPRIETARY INFORMATION 11
  12. 12. Plant Modification Implications> Most refineries can process some volume> Crude blending is the key – Compatibility – Light Ends> Changes to ensure piping and tankage sufficiently heated to overcome high pour points> Consideration of dewaxing catalysts for pour control and fractionation changes> Under running sulfur plants may require modifications to prevent fouling> WWTP modifications 20 November 2012 PROPRIETARY INFORMATION 12
  13. 13. Conclusions> Tight Oil produced crudes are: – Readily available and quantities are increasing – Waxy and low sulfur/nitrogen> Experience has been generally favorable> Some issues are due to the waxy/paraffinic nature> Limited refinery investment modifications 20 November 2012 PROPRIETARY INFORMATION 13
  14. 14. Closing> Contact: Scott Sayles, Executive Consultant, SSayles@kbcat.com> Questions?> Future webinar topics: – Market conditions – Asset optimisation – Investment support – Sustainable workforce development> We welcome suggestions for future topics – please email kbc-marketing@kbcat.com> Thank you for joining us! 20 November 2012 PROPRIETARY INFORMATION 14

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