downstream of production
TRANSCRIPT
In the name of God
Downstream & Midstream of oil industry
COURSE INSTRUCTOR :DR. MOHAMMAD GHAVIDEL SYOOKIINTRODUCE BY:HOSSEIN MOKHLESI & MAHDI SHAHBAZI
Review
The oil and gas industry is usually divided into three major sectors: -Upstream -Midstream -Down stream
Upstream
The upstream sector includes searching for potential underground crude oil and natural gas fields, drilling exploratory wells, and subsequently drilling and operating the wells that recover and bring the crude oil and raw natural gas to the surface
Upstream
Exploration
Drilling
Production
Midstream
As its name implies, the midstream segment encompasses facilities and processes that sit between the upstream and downstream segments.
Midstream
The midstream sector involves the transportation (by pipeline , rail, barge, oil tanker or truck), storage, and wholesale marketing of crude or refined petroleum products
The most important thing in midstream business is the location…
Location, Location, Location...
Processing Processing oil and gas liquids into marketable products is the
beginning of the midstream segment of the business. Field processing is the first phase of oil and gas processing,
starting in the onshore or offshore production field
ProcessingHere, surface facilities are designed and installed that:
Measure the production rate,
Separate the oil, gas, and water,
Remove impurities,
Temporarily store the crude or gas.
Transportation After field processing, treated oil and gas is delivered via a
complex transportation, transmission and distribution infrastructure.
land transportation pipelines, truck and rail
Marine transportation tankers or vessels , pipelines and barges
Marine transportation Some times it is so complicated to use pipelines in marine
transportation , so we use the SBM (single buoy mooring) method.
SBM
SBM
The disadvantage of ordinary SBM is that they have no storage capacity.
So a SBM has been developed by Shell , called Spar buoy to storage 300,000 barrels of crude.
Spar buoy
The advantage of this method is that we can keep produce crude , even when we can’t load tankers due to weather
Spar buoy
What is Downstream?Processing, transporting and selling refinedproducts made from crude oil is the business of
thedownstream segment of the oil and gas industry.
The downstream industry provides thousands of
products to end-user customers around the globe.
What is Downstream?
Globally, the most widely known crude oil product is
Gasoline.
Other fuel products are diesel, jet fuel and marine fuel oil.
Fuel products for transportation are 65% of global demand.
Fuel Products
FERTILIZER
Familiar Products:
Unfamiliar Products:
Petrochemicals
GASOLINE JET FUEL
ASPH
ALT
LUBRICANTS
SYNTHETIC RUBBER
PLASTICS PESTICIDES
HEATING
What is Downstream?Key downstream business sectors include:
Oil Refining,
Product Marketing
Supply and Trading
Wholesale & Retail.
Product MarketingProduct marketing is the business of
finding and supplying wholesale and retail customers.
Downstream Customers
These customers possess either internal demandfor refined fuels or distribution networks for
reaching retail customers.
Large direct consumers of downstream products include:
Petrochemical & Industrial Manufacturers,
Utilities,
Municipalities,
Trucking Fleets,
Airlines.
Commercial Consumers
Other companies may possess distribution assetsor branded sites aimed at reaching retail customers.
Retail Customers
RefiningHistory of Refining
The history of refining innovation is really driven by the evolution of product
demand.
Early Distillation Stills The earliest petroleum refineries in the 1880’s
were really little more than stills - like those to make “moonshine” alcohol in the old movies!
They were designed to extract both kerosene from crude oil for use as lamp oil and petroleum grease.
Enter The Automobile
By the early 1920’s the automobile and airplane were firmly established as major modes of transportation in the developed
economies.
This growth forced global refiners to expand.
Motor Fuels Dominate
Refiners also developed new refining technologies to increase yields of gasoline and other motor fuels.
Refining Today
Today, refiners produce a wide range of fuels and specialty oils.
Transportation Electricity Generation
Industrial Processing Home Heating Petrochemical
Production
Crude oil is combustible, of course, and it is sometimes asked why crude isn’t burned as fuel without the expense of refining.
Why Refine Crude Oil
Why Refine Crude Oil
Crude oil cannot be used as it occurs in nature, other than burning for fuel, which is wasteful.
Modern engines will not run on crude oil
Most crudes contain the lighter hydrocarbons, and as a result they are so inflammable that they must be handled by very experienced men. only whit a flashpoint above 65°C are safe enough for ordinary use. To ensure a high flashpoint, therefore, the more volatile parts of the crude must be removed by refining.
Why Refine Crude Oil
Crude oil is first washed to remove salt. Crude oils are complex mixtures of hydrocarbons which range form those containing only one carbon atom in the molecule(methane, CH₄)up to those containing 60 or more. Such mixtures do not have a single boiling point.
CRUDE OIL
Downstream of production
The first stage in the refining of crude oil is usually the separation BS & W at the tank farm. From here, the oil is pumped via the crude train to the first column in the refinery system.
Distillation – A Boiling Process
the distillation of crude oil is the start of the refining process, and is primarily a boiling operation. Distillation process of first driving gas or vapour from a liquid by heating, then collecting the gas or vapor by condensation(ie., reduction to a denser form by cooling; eg., condensation of steam to water)
Crude Distillation Unit
Crude oil is first washed to remove salt, heated in
a furnace, and introduced to the Crude Distillation Unit (CDU). In the CDU, the crude oil is separated by boiling range into a number of
fractions.
Fractions
A fraction is the term used for a specific
hydrocarbon which is produced and captured
according to its molecular weight and boiling point.
Some fractions have all the qualities needed as refined products and are ready for sale. Other require further
processing.
FractionationSuch mixture do not have a single boiling point,
since some components will vapourise at relatively low temperatures (ie., the lighter
hydrocarbons) while others will require relatively high temperatures (the heavier hydrocarbons).
On the basis of boiling ranges, therefor, the many different hydrocarbons in crude can be divided into a small number of groups(called
‘cuts’ or ‘fractions’)Which will separate from the crude at different temperatures. The distillation process by which fraction are separated from a mixture is known
as ‘fractionation’
Multi-stage distillation
In most modern refineries, the crude is processed through several CDU’s, so that the various cuts can be produced to very precise
specifications. Multi-stage distillation also ensures that straigh-run fractions are free of
impurities.
Thanks for your attention