This document discusses how refineries are using new computer-integrated manufacturing technology called Refinery Information Systems and Advanced Process Control (RIS/APC) to address changing quality specifications for reformulated gasolines (RFG) and low-sulfur diesels (LSD). RIS/APC helps refineries optimize performance, scheduling, and process control to manufacture cleaner fuels competitively. It integrates databases, functions, and communications across computer networks and organizations. Properly implementing this technology could save refineries $50-100 per barrel of crude processed by improving yields, reducing costs, and ensuring compliance with increasingly complex fuel regulations.

1. SPECIAL REPORT
P ERRE R LATOUR
Serpoint, Inc.
Houston, TX
Revolutionary changes in qual-
ity specificatiehs (number,
complexity, uncertainty, eco-
nomic sensitivity) for refor-
mulated gasolines (RFG)
and low-sulfur diesels
(LSD) are being
addressed by pouerful,
new, computer-inte-
grated manufactur-
ing technology for
refinery informa-
tion systems and
advanced
process control
(RISIAPC).
Thefollowing discussion shows
how thefive active RISIAPC functions: perfor-
mance measurement, optimization, scheduling,
control and integration are used to manufac-
ture new, clean fuels competitively. With current
industry spending for thisfield averaging 2 to
3t/bbl crude, many refineries can capture
50 to 100rtlbbl if the technology
isproperly employed
and sustained
throughout refining
operations, organiza-
tions and businesses.
Furthermore, it is impor-
tant to describe the scope
of RISIAPC today and
through the 1990s, summa-
rize the RFGILSDsituation
analysis relevant to design and
use of RISIAPG, describe princi-
ples of solution, identify current
available technology and illustrate
incentives for comprehensive CDIt[
integration for refining.
Reprinted from !If.M.,~~July/August 1994 Copyright©, Hort Publicotions, Inc., 1900 Gront St., Ste. 400, Denver, CO 80203, 303/837-1917
Fuel Reformulation is circulated internationally by subscription only at $149 per year.

2. '1'he core issue for manufacturing reformulated ga.solines
(RFG), low-sulfur diesels (LSD) and environmentally
cleaner fuels worldwide is a complex operations control
problem under changing, uncertain situations. The evo-
lution of traditional HPI process computer control technology,
broader industrial computer-integrated manufacturing (CIM) and
organizational re-engineering are intersecting in meaningful ways
to cope with current refining challenges.
Scope of RIS/APe
Historically, computerization of the refining business has
developed on two parallel tracks:
• Off-line accounting, LP planning and business systems.
• On-line computer control, digital instruments and unit opti-
mization.
Today RIS covers multi-refinery wide, on-line, real-time
operating and business information systems with an active deci-
sion support role to gather data, transform it to information,
develop knowledge and perform actions. It integrates databases,
functions and communications among computer networks and
organizations for modeling, planning, scheduling, optimizing, exe-
cuting, controlling, reporting, training and supporting decisions.
Today APC covers dynamic rnultivariable predictive con-
trol, on-line economic optimization and automatic move-
ments/transactions of all process operations, connecting linkages
Figure 1. Scope - APe Functions
Atmospheric crude fractionation unit
advanced process control with local
unit optimizers:
• Charge
• Yields/quality
• Energy
• Safety
Flood1,2,3,4 •
•
III
·,·" .
~
Duty,valve
positions
Table 1. Financial Scope of RIS/APe for a
Typical-Refinery.
Average over 10 years
Benefit Cost 1
U.S.(/bbl crude
APC
RIS
RISand APC
20-40
40-80
60-100
2
4
6
For average refinery
130 Mbpd or 18 Kton/ day
APC
RIS
RISand APC
Million U.S.$/year
10-20
20-40
30-50
1
2
3
Typical benefit/cost, return ratio: 10 to 1
1. Total capital and expenses: Seroices, sofuoare, bardu/are and mainte-
nance (internal/external).
Assumes DCS and some computers and softuiare exist.
and oil movements. APC executes and enforces operating policies,
limits and safety rules. Figure 1 illustrates a variety of APe func-
tions for an atmospheric crude oil distillation unit to adjust flow,
1.-I~--'.;:---------1"---l~Naphlha
t+
•'"~II. II
VL •••
HGO
L-._ ..•••....•. Aresid

3. temperature and pressure settings - to improve quality, yield,
heat and capacity. APC is applied to all process units and to related
groupings of units.
In summary, the scope of RIS/APCcovers on-line comput-
erization of fuels and petrochemicals manufacruring, from basic
control instrumentation to external refinery interfaces, throughout
the organization.
The financial scope of RIS/APC for a typical refinery facing
changing economics, products and crudes is shown in Table 1.
The benefit potential in the RFG/LSD era could be at the upper
side of the ranges given. Costs are averaged over a decade, assum-
ing a series of projects under a coherent, self-financing master
plan.
RFG/LSD Situation Analysis
The business situation for fuels in the 1990s is change.
Change is driven by growing environmental needs, product qual-
ity and economic competition. The Americas are reformulating
gasolines and diesel with restructuring to survive low demand
growth. Europe is making clean diesels and oxygenates with
restructuring to serve opening and shifting markets. The
Asia/Pacific and the Middle East are building new plants to serve
fast-growing and opening markets under new environmental
requirements. Lasting trends of increasing government regulations
on product qualities, emissions, safety, employment, certification
and compliance are well known.
Gasoline specs are expanding from the one of interest to
the motorist (octane/price/pump) to perhaps 10 of interest to gov-
ernments (Rvp, 02, sulfur, benzene, aromatics, olefins, T9Q,T50,
density, carbon). Diesel specs may grow to 10 as well (Cetane
number, Cetane index, sulfur, CFPP, aromatics, polyaromatics,
viscosity, density, T90,T50). taff is being reorganized and down-
sized, and specialists are retiring or subcontracting. Financial infor-
mation is becoming more localized to individual operators and
units, with nonlinear, real-time transfer prices, costs, value-added
accounting, and profit/cost center monitoring. Financial modeling
of noncompliance cost and penalty for violating specs or agree-
ments is becoming critical. Business partnering is growing among
refineries, and with service and technology suppliers. Basic tech-
nology for catalysts, processes and computers needed to manu-
facture RFG!LSDis rapidly changing. Changing information issues
include data, accuracy, variance, averaging, correlation, reconcili-
ation, base line comparison, storage/retrieval, user/server, certifi-
cation, authorization, forecasts, decisions, learning, management,
networking, open systems, software engineering and multi-media
(data, text, voice and image).
Strategic Management Issues
Refineries are facing a series of common issues that must be
resolved by RIS/APe. 3 Strategic management issues for RI /APC
follow:
• How to manage information flow and the decision process.
• How to determine and use economic information at all lev-
els of decisions.
• How to value sale and purchase of crudes, intermediate
streams, blend components, products, effluents, and emissions
(amount and quality), depending on use.
• How to manufacture new products (clean reformulated fuels)
competitively, within government and market restrictions.
• How to accelerate responsiveness and flexibility of organiza-
tions and plants to change.
• How to justify expenditures for RIS-APe.
• How to ensure results and quantify improvement.
The role of RIS/APCis expanding for manufacturing prod-
ucts like oxygenated gasoline, low sulfur diesel and fuel oil, RFG
and quality certifications. The corresponding RFG strategic control
problem is illustrated in Figure 2. RIS/APC is used to comply with
other regulations for emissions (air, water, ground), operating
permits and safety.
RIS/APC is used to cope with the changing nature of the
gasoline manufacturing business. Quality specs are increa ing in
number, tightness, nonlinearity, economic consequence and inter-
actions through simple and complex models for vehicle fleet
exhaust quality. Gasoline grades are multiplying to serve regional
Figure 2. Reformulated Gasoline Control Problem
Feed Component Products/Proper ties Exhaust Emission Air Quality
Oil Refinery
Gas petrochemical
Hi sulfur C4 RVP CO Smog
Lo sulfur LSR Octane NOx Acid rain
Lite Isomerization (R&M)/2 VOC Particulates
Hea~ Pora gas O2 S02 Carcinogens
Para inic Re ormate Benzene Benzene Ozone
Napthenic Alkylate Aromatics HC Warming
Aromatic FCCG Olefins Aldtcydes
HYCN Sulfur Car on
COKNAP End point CO2
Raffinate 50%
Pyrolysis Density
MTBE V/L
TAME
Ethanol Cold start
7 Types 14 Components 13 Properties 9 Species 6 Effects
Note: 7x 14x 13x9x6 =68,796 Effects paths

4. markets and seasonal requirements. Product prices are set for the
short or long term on spot or continuing contracts, with hedging
forecasts. Delivery requirements and penalties for volumes, sched-
ules and qualities are increasingly complex. The capability to
make (incremental manufacturing costs) or buy (incremental pur-
chase for resale prices) must be continually modeled and moni-
tored, both for finished products, properties, blending components
and feedstocks. Forecasts of demand and prices, competitors, gov-
ernments, and crude supplies (price, quality, availability) must be
integrated with RIS/APC manufacturing plans.
Diesel Specs
Diesel sulfur and smoke specs and taxes for cities, on
roads, off roads, and marine vary in increasingly complex ways.
RFG/LSDare essentially complex, custom petrochemical fuels with
alcohols, ethers, additives and dynamic, nonlinear process eco-
nomics. Refinery operation is evolving away from continuous set-
tings to meet a 30-day average LP plan toward batch modes to
track and serve each product required. One example is planning
and record keeping for the winter 02 credit program. Blending of
RFG is a complex business of its own.
RI /APC is needed to satisfy:
• Proof of compliance.
• Control area responsible-party obligations.
• Attest engagements.
• Mandatory reporting.
• Freedom of Information Act requests.
These needs are spawned from presumptive liability prin-
ciples in the CAAA-90.RIS/APCis central to concepts of:
• BAT (best available technology).
• BDAT (best demonstrated available technology).
Figure 3. Solutions - Hydrocarbon Management Model
1 Month
- - ---- --~ ~------
• MACT(maximum achievable control technology).
• BAT certification (standards for emissions and technology
evaluation).
• Certification of products (RFG, LSD).
• Certification of manufacturing procedure (measurement,
analysis, operation).
• Certification of data and information.
• Reporting documentation standards and legal compliance.
• BAT standards for RIS!APC itself.
While the role of RIS/APC is less significant for refineries
facing little change, little uncertainty and little complexity; clearly
its role is becoming profound and central to cope with large
changes, large uncertainties and large complexities. The problem
is how best to deploy RIS!APe for financial results.
Principles of Solution
A number of principles of solution have been established to
describe the role of RIS/APC for manufacturing fuels and petro-
chemicals, particularly RFG!LSD.
The first principle is to focus on the following five active
functions that make money:
• Performance, measure and improve.
• Planning and scheduling.
• Operations optimization.
• Advanced process control.
• Plantwide integration, functions and data.
"Function comes before form," and these five active func-
tions of RIS!APC can be improved in all refining businesses. All
computerized RIS/APC or CIMfunctions can be lumped into these
five decision support activities to run the business.
The second principle is to employ an organized approach
Corporate Management
Plant Management••• Marketi~g l~ DemandS e
L-
1
1:.:;I.l:;i~ !.
Feedback
1 Week
1 DAY +
Perfarmance
Expectations
Feedback
8 Hours
O~rating sch~ules
• Mar inal pr uct valu s
• Pra~ction 0 jectives (~ard/ range)
4 Hours
OP!lratinJ Targets
• Valum.es
• Specitications
Feedback
Real Time
I
O!>,!rating Instructions
• Temperatures
• Pressures
• Contr Isettings
Transfers and
Movements
Regulatory Control Systems
Customers
Suppliers
Blending Oil MovementsUtilities Process Shipping

5. that is understood by everyone. The sources of benefits are iden-
tified for quantified objectives. The third principle is to employ
time cycle concepts of the refinery plan/do/see loop throughout
RIS/APC design and use. The time cycle applies to processes,
plants and oil movement networks. It also applies to individuals,
groups, site organizations and businesses. Finally, it applies to pro-
jects, maintenance and RIS/APC design and use itself.
The fourth principle is to employ an integrated database
and common users' interface. While the database may reside in dif-
ferent distributed hardware segments, it should not contain error-
prone duplications. Users should have ready access to all data and
functions they need or are authorized to use.
The fifth principle of solution is to properly employ and
maintain models throughout the time cycle. Modeling extends
beyond rigorous engineering models of processes to cover inter-
acting relationships between plants, rigorous on-line economics for
costs, values, profits, and transfer prices for stream flows and prop-
erties. Value-added tracking for processing steps and product man-
ufacture is gaining increased modeling attention. Modeling of busi-
ness objectives leads to quantification of penalties for violating
specs and noncornpliance.> Models of the impact of refinery oper-
ations on its surroundings, particularly markets and governments,
are needed to make sound trade-off decisions. Finally, modeling
encompasses specification and determination of particular perfor-
mance measures.
The sixth principle is to directly tie supply planning LP
models to unit control and optimization through a comprehensive
scheduling function with improved ability to optimize the schedule
and optimize future operations.
The seventh principle is to design RIS/APC according to
the hydrocarbon management model in Figure 3. This is a scheme
of functions and data management to span the width of one or
more plants, from current time forward.
The eighth principle is to extend database trends from past
history to future forecasts, to allow staff to focus and work on com-
ponents to future profitability. The first trend represents the sets
of all future information about products: prices, volumes commit-
ted or nominated, quality, delivery and revenue. The second trend
represents the sets of all future information about crude receipts:
prices, volumes committed or nominated, quality, delivery and
costs. The third trend represents the sets of all future information
about the process units: availabilities, volume of feed, yields and
costs. The fourth trend represents the sets of all future informa-
tion about inventory in all tanks and storage devices: volume,
quality, input source and rate, discharge destination and rate. The
fifth trend represents financial forecast derived from previous data,
on a periodic (daily) basis as well as present value of future prof-
its, discounted as appropriate. The intent is to provide a tool so
each commitment or adjustment can be quickly evaluated. The
time range could vary. A variety of type of data could include offi-
cial, contracted, tentative, scheduled, sub-optimized, optimized
and proposed.
These eight principles of solution can be employed to cre-
ate and use comprehensive RIS/APC to manufacture complex
RFG/LSDfuels in the future.
In summary, any business can cope with uncertainty and
change by creating organizations and systems that accomplish
these tasks:
• Forecast the future, set objectives, model, plan, schedule, fre-
quently (daily) .
• Replan, reschedule, re-optimizewith new information, fre-
Table 2. RISj APC Technology Currently Available for
Making RFGjLSD
Process
Blending
Oil movements
Fract, distill
CR,isom
Ethers, olefin
HCU,HDS
DCU, FCU
Aromatic, lube
Utilities
Software
Scheduler
Engrg models
Optimizers
Relational database
Real-time database
Interfaces
Networks
IS case tools
RIS platforms
Know-how
Benefits
System performance
Master plans
Integration
Training
Project management
Maintenance
Analyzers
Computers
Table 3. Quantified Benefits Typical Magnitudes
per Refinery
(/881 Unit (/881
Unit Feed Feed/Crude Crude
APC, Optimize
Crude unit 4-8 1.00 4-8
Vacuum unit 5-10 0.30 2-3
Cat cracker 20-33 0.30 6-10
Cat reformer 10-20 0.20 2-4
Hydrocracker 15-25 0.20 3-5
Delayed coker 15-40 0.15 2-6
Alkylation 15-30 0.08 1-2
Light ends 10-20 0.10 1-2
Blending 5-12 0.80 4-10
Subtotal - APC 25-50
Potential - APC 20-40
RIS
Performance, measure & improve 5-10
Planning, scheduling 10-20
Operations optimization 10-20
Integration 20-40
Subtotal - RIS 45-90
Potential - RIS 40-80
Total Potential - APC/RIS 60-100+
Note: 60tt/bbl x 70Mbpd pays 20MM USD in 13 yrs
1OOtt/bbl x 200 Mbpd pays 60MM USD in 0.8 yrs
quently (daily).
• Execute current (daily) plan faithfully, promptly, consistent
with forecast, and move the plant, organization (daily).
• Measure results, evaluate performance, report and explain
deviations from plan, frequently.
• Learn from past mistakes, improve tools, models, processes,
people, procedures (daily).
• Repeat cycle: forecast, plan, schedule, optimize, execute,
audit, improve, regularly (daily).
Such a business is flexible, fast, adaptable, smart, competi-
tive and reliable.

6. Technology
RlS/ APC technology is currently available and rapidly
maturing to strengthen its role for making RFG/LSD.This technol-
ogy is in three categories: process, software and know-how (Table
2) RlS/APC technology for each process and for groups of
processes to make particular products or qualities has been devel-
oped. Broad refinery features like sulfur balance, hydrogen man-
agement, utilities, and gasoline production are additional process
categories. The software technology list enables system develop-
ers/integrators to build the functions and connect them for plant
use. The list of know-how and expertise continues to mature with
recent emphasis on assessment of benefit potential and determi-
nation of system function performance,
An example technology is a RIS platform software archi-
tecture for a plantwide production control and information sys-
tem where the principal RlS functions are connected to relational
and real-rime databases, It supports comprehensive scheduling,
optimization, control and integration functions.
Another example technology is connection of rigorous unit
suboptimizers to determine intermediate stream t.ransfer prices in
real time, every few minutes. Such dynamic prices can be com-
pared with external markets for better buy/sell decisions. Further,
they can be used for value-added tracking th.rough each operat-
ing step of interest.
Another example technology is methodology know-how
for RIS/APC master planning for RFG/LSD. The organized
approach to "what to do" and "how to do it" using easily devel-
oped business data models for refineries leads to analysis of why
candidate projects should be done, which in turn leads to how
they should be done to capture and sustain significant results.v
Incentives
While the case for a compelling role for RIS/APC to manu-
facture RFGILSDmay be built on good business practice and com-
petitive survival, experience teaches that tlle discipline of careful
attempts to quantify and verify performance and financial benefits
remains critical to lasting success. It provides the guide for what
to do, and at what pace. Major work is underway to quantify the
complex, intangible areas affected by RIS/APC4-7
The magnitudes of benefit are being established and
reponed. Typical ranges expected for APC of refinery units, e tab-
lished in the 1980s, are shown at the top of Table 37 The newer
plantwide RIS functions are providing tangible financial incen-
tives for refineries worldwide, as shown in the lower pan of Table
3. Results for manufacturing substantial RFG/LSDin the latter pan
of this decade will approach the higher end of the ranges in Table
3.
When modern RlS/ APC is integrated with revamp designs
for RFG/LSD,substantial capital savings are realized (perhaps 5 to
8%). Off-site tankage and piping can be optimized with new, rig-
orous scheduler simulations and integrated in-line blending strate-
gies. Diesel hydrotreater reactors are smaller and H2 requirements
less if design premise sulfur is increased from 0.043 without APC
to 0.048 with APC, to ensure maximum 0.05 wt% sulfur LSD.
The average total costs to capture and sustain such results
are on the order of 6¢/bbl, from Table 1.
It appears a strong role for RIS/APC to manufacture
RFG/LSDcan improve a refining net margin by 0.5 to 1.0 USD/bbl
crude. Further, it is most likely a necessary technology for sur-
vival of refining, ranking with process design and catalysts.
Acknowledgement:
Mr. Shawn Wright and Dr. Lowell B. Koppel of Setpoint have made
major contributions to the topics couered in this article.
REFERENCES
1. Babikian, George G., "Automation Needs to Make EC-X at
ARCO, "ISA 91 Keynote speech, Anaheim, Calif., Oct. 28, 1991.
2. Hall,john R., "us.Refiners Move into Another Challenging Tech-
nical Era," Oil and Gas [oumal, Oct. 21, 1991,p. 58.
3. Tapscott, D., and Caston, A., Paradi~m Shift - Tbe New Promise
of Information Technology, McGraw-Hill, 1993
4. Latour, Pierre R., "APC-RlS,Keys to Successful Business in the
Reformulated Era'; Fuel Reformulation, V2, n2, Mar/Apt, 1992,p.
14.
5. Latour, Pierre R., "Quantify Quality Control's Intangible Bene-
fits, "Hydrocarbon Processing, V71, n5, May 1992.
6. Koppel, L. B., "Information System Master Planning, "Hydro-
carbon Processing. May 93, p. 45.
7.Latour, Pierre R., ''Advanced Computer Control of Oil Refineries
- W''bereWe Are, Where We Are Going, "Paper No. 21, Petroleum
Refining Conference, Thejapan Petroleum Institute, Tokyo, Oct. 21,
1988.
Pierre R. Latour is Vice President and Consulting
Engineer for Setpoint, Inc. His specialty revolves around
industrial application of advanced process computer con-
trol techniques and has published numerous articles on
the subject during his 25 years of industrial experience.
Latour earned a B.S. in chemical engineering from Vir-
ginia Polytechnic Institute in 1962 and a M.S. and Ph.D.
in chemical engineering from Purdue University in 1964
and 1966, respectively. He is a registered professional
engineer in Texas and California.