1. Introduction to Oil Refineries
January 31st
2015

2. Introduction to Oil Refineries
Agenda
Introduction to Oil Refineries 2
 Oil and Gas Value Chain
 Refineries
Why do we need Oil Refineries?
Separation
Cracking
Alkylation
Treating
Reforming
 Refinery Design and Construction
 Conclusion
 Questions

3. Introduction to Oil Refineries 3
Oil and Gas Value Chain

4. Oil and Gas Value Chain
Introduction to Oil Refineries 4
 18 oil refineries in Canada
 110 billion liters of crude oil
treated in 2013 (690 million
barrels)

5. Refineries – Why do we need Oil Refineries?
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 Crude oil has more value when separated into its components
 Meet government / environmental regulations
 Crude oil composition rarely meets market demand

6. Refineries – Why do we need Oil Refineries?
Introduction to Oil Refineries 6
 Separation
 Cracking
 Alkylation
 Treating
 Reforming
A refinery separates and treats crude oil into useable
finished products following a number of main processes:

7. Refineries - Separation
Introduction to Oil Refineries 7
Atmospheric Column Vacuum Column

8. Refineries - Separation
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Separation
Use heat gradient to separate
different chain lengths
Tap into the column at different
points to collect different products
Creates natural composition of
desired products

9. Refineries - Cracking
Cracking
Breaks long chains using:
Temperature
Catalyst
Hydrogen (Optional)
Can treat the longest of chains
Great for heavy oil
Some can remove undesired
products
Impurities
– Sulphur
– Nitrogen
– Metals
Aromatics
Introduction to Oil Refineries 9

10. Refineries - Alkylation
Introduction to Refineries 10
Alkylation
Combines Smaller Chain
Molecules:
Iso-butane (C4)
C3 / C4 with a double
bond (olefin)
Improves Octane
Number
Other forms of
combining, but less
common in North America:
Polymerization
Esterification

11. Refineries - Treating
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Hydrotreating
Treat the oil using:
Temperature
Catalyst
Hydrogen
Results of hydrotreating:
Removes impurities
Saturated fuel
Reasons:
Protects catalysts in cracking
units
Meet government regulations
Protect engine from damage
and poor performance
Solvent Recovery
Benzene limitations in refining products
Aromatics are desired products in the petrochemical
industry
Solvents (e.g Sulfur dioxide (SO2)) dissolve only
aromatics out of fuel stream

12. Refineries – Reforming
Introduction to Oil Refineries 12
Reforming
The reactions occur using:
Continuous heating (endothermic reaction)
Catalyst
Desired results of reformer:
Straight chains to bent chains
Straight chains to saturated rings
Improves Octane number
Generates Hydrogen for the plant

13. Refinery Design and Construction
Introduction to Oil Refineries 13
Collaboration is Key
Refineries Design and Construction
Expensive*
Grassroots: $7-13 billion
Major Upgrade: $2-3 billion
Sensitive to market forces
Government / Environmental Regulations
Crude and Product Prices / Demand
OWNER EPC
*Economics of Petroleum Refining - The Canadian Fuels Association (December 2013)

14. Refinery Design and Construction
Introduction to Oil Refineries 14
 Owner / EPC led
Keep system running,
fix wear and tear
Improve / Expand /
Change current
operations
 EPC led
Select / Size Equipment
P&IDs and Other
Technical Drawings
Pipe and Equipment
Layout
Optimize System
Procure equipment and
materials
Construct Project
 Owner led
Define
prospective
opportunity
Develop
initial scope
High level
technical
pre-work
Process Engineers play a role at every stage of the project
Maintenance
and
Improvement
Final Design /
Construction
Initial
Framework

15. Conclusion
 Refineries Key to Oil and Gas Value Chain
110 billion liters of crude oil treated per year
 5 main parts to a refinery
Separation
Cracking
Alkylation
Treating
Reforming
 Major collaboration between the Owner and the EPC firm during refinery
design and construction
Introduction to Oil Refineries 15

16. Questions
Introduction to Oil Refineries 16

17. References
Introduction to Oil Refineries 17
 The global oil & gas industry: prospects & challenges in the next decade by Theophilus Acheampong (July
2011)
 Economics of Petroleum Refining by The Canadian Fuels Association (Dec 2013)
 Energy market fact book 2014-2015 by Natural Resources Canada (July 2014)
 An Introduction to Petroleum Refining and the production of Ultra Low Sulfur Gasoline and Diesel Fuel by
The International Council on Clean Transportation (Oct 2011)
 Petroleum Refining in Nontechnical Language (Fourth Edition) by William L. Leffler (2008)
 World Energy Blog (www.worldengergyblog.com)
 Chevron Refining
(http://pascagoula.chevron.com/home/abouttherefinery/whatwedo/processingandrefining.aspx)
 Doyon Anvil (http://www.doyonemerald.com/our-projects/refining/coker-units)
 Phoenix Equipment (http://www.phxequip.com/index.aspx)
 Sinopec (http://www.sinopecgroup.com/group/en/)
 Fluor (fluor.com)

18. Introduction to Oil Refineries - Appendix
Introduction to Oil Refineries 18
Appendix

19. Introduction to Oil Refineries - Appendix
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Refineries 19

20. Introduction to Oil Refineries - Appendix
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21. Introduction to Oil Refineries - Appendix
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22. Introduction to Oil Refineries - Appendix
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Canadian Import and Export
BillionLiters
Exports Imports

23. Introduction to Oil Refineries - Appendix
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Industry Rationalization has not changed Refining Capacity

24. Introduction to Oil Refineries - Appendix
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Refinery Classification Scheme

25. Introduction to Oil Refineries - Appendix
Partial List of Specifications for Oil Refineries to meet :
Octane Number
Cetane Number
Reid Vapour Pressure
Wt% Sulfur
Wt% Nitrogen
Wt% Benzene
Haze Point
Smoke Point
Many other considerations in additional to what is stated above
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