petroleum industry

Petroleum Industry

Agcaoili, Alexandrine RoxanneCruz, Ana Margarita

Magallano, May Uzielle

Introduction

Introduction• A. Background

Petroleum is the product of natural changes in organic materials over millennia.

Petroleum is formed by hydrocarbons with the addition of certain other substances, primarily sulphur.

Originally the primary use of petroleum was as a lighting fuel, once it had been distilled and turned into kerosene

Petroleum, along with oil and coal, is classified as a fossil fuel, therefore petroleum is considered to be a non-renewable energy source.

As the reserves of recoverable liquid petroleum diminish, oil companies are increasingly turning to unconventional resources. Unconventional resources include such things as extra heavy oil and shale.

Introduction

Some Historical Events.

Introduction Peak oil is a term that applies to the point when

global petroleum extraction is at its maximum. Current estimates based on the Hubbert model

indicate that world peak oil will take place in roughly 2020. Several different factors have lead to this conclusion including global demand/supply and production technology.

Introduction When it comes to finding oil, geologists are the

ones responsible. Geologists use their knowledge of rock formations in order to find the right conditions for an oil trap.

Most commonly, geologists apply seismology for oil location. In this method, shock waves are created that pass through rock layers and are then reflected back to the surface where they are measured using seismic equipment.

Introduction Petroleum formation occurs by various

hydrocarbons combining with certain minerals such as sulphur under extreme pressure.

Modern day scientists have proven that most if not all petroleum fields were created by the remains of small animal and plant life being compressed on the sea bed by billions of tons of silt and sand several million years ago.

Introduction The oil and gas industry is usually divided into

three major sectors:

Introduction• B. Application/Market

Petroleum products include transportation fuels, fuel oils for heating and electricity generation, asphalt and road oil, and the feedstocks used to make chemicals, plastics, and synthetic materials found in nearly everything we use today.

About 75% of the 6.79 billion barrels of petroleum that we used in 2012 were gasoline, heating oil/diesel fuel, and jet fuel.

Top 16 uses of petroleum• Bunker Fuel

• Detergent• Plastics• Jet Fuel• Diesel Fuel

• Synthetic Fibers• Fertilizers and Pesticides• Paint• Gasoline• Photographic Film• Food Additives

• Heating Oil• Synthetic Rubber

• Make up• Medicine• Candles

Industry Statistics

Industry Statistics• Global Production of Petroleum

Total Crude Oil Supply (thousand barrels per day)

Total Production of Refined Petroleum Products (thousand barrels per day)

Source: International Energy Statistics

(http://www.eia.gov)

2008 2009 2010 2011 2012

WORLD 85,476.3 84,580.7 87,076.5 87,333.0 89,153.7

2008 2009 2010

WORLD 74.509.237 82,443.7 83,799.2

Industry Statistics• Local Production of Petroleum

Total Crude Oil Supply (thousand barrels per day)

Total Production of Refined Petroleum Products (thousand barrels per day)

2008 2009 2010 2011 2012PHILIPPINES 27.2 28.9 38.6 31.9 25.2

2008 2009 2010

PHILIPPINES 179.683 150.4 181.3

Source: International Energy Statistics(http://www.eia.gov)

Industry Statistics• Global Consumption of Petroleum

Total Refined Petroleum Consumption (thousand barrels per day)

2008 2009 2010 2011 2012

GLOBAL 84,496.0 84,758.9 87,364.3 88,614.3 88,944.4


Industry Statistics• Local Consumption of Petroleum

Total Refined Petroleum Consumption (thousand barrels per day)

2008 2009 2010 2011 2012PHILIPPINES 300.2 295.1 309.2 316 302.3


Industry Statistics• Local Imports Petroleum

Imports of Crude Oil (Thousand Barrels Per Day)

Imports of Refined Petroleum Products (Thousand Barrels Per Day)

2006 2007 2008 2009 2010PHILIPPINES 103.454 139.148 134.244 158.142 147.866

2006 2007 2008 2009 2010PHILIPPINES 238.7 203.5 203 135.860 182.040


Industry Statistics• Local Exports of Petroleum

Exports of Crude Oil (Thousand Barrels Per Day)

Exports of Refined Petroleum Products (Thousand Barrels Per Day)

2006 2007 2008 2009 2010PHILIPPINES 36.715 32.455 29.118 9.017 17.805

2006 2007 2008 2009 2010PHILIPPINES 0 0 0 26.189 20.085


Industry StatisticsPetroleum Refineries in the Philippines

Refinery Location Production

Petron Limay, Bataan 29,000 m³/d

Royal Dutch Shell Batangas 19,000 m³/d

Caltex(Chevron) Batangas 13,700 m³/d

• Accdg. To DOE: 1200 players in petroleum

industry P39B investments in 2011. 60 Depots 1,200 Gasoline Stations 1,400 LPG establishments

Industry StatisticsLIST OF PETROLEUM COMPANIES

OPERATING IN THE PHILIPPINES

LIST OF PETROLEUM EXPLORATION COMPANIES

Process Flowchart

Raw Materials

Raw Materials• An oil refinery is a manufacturing facility that

uses crude oil and other feedstocks as a raw material and produces a variety of refined products.

Petroleum Exploration and Refining Process

Unit Processes/Operations

A. Equipment Used in Petroleum Refinery

• Heat Exchangers• Furnace• Fractionating Tower• Steam Strippers• Condensers• Coolers• Auxiliaries

B. Separation Processes

1. Fluid FlowFluid flow is an operation that must not permit any unexpected failure

because fire and explosion might ensue.

2. Heat TransferTransfer coefficient change daily as fouling occurs. Cooling towers

become less effective with time. Modern plants check the condition of the exchangers daily against computer record.

3. Distillation When the difference in volatility between components is too small for separation in a reasonably sized tower, modifications of simple distillation are used. When a solvent of low-volatility is added to depress the volatility of one of the components, the separation is known as extractive distillation. Butenes are separated from butanes using this principle with furfural as the extractant.

4. AbsorptionGas oil is used to absorb natural gasoline from wet gases. Gases

which are expelled from gas storage tanks as a result of solar heating are also sent to an absorption plant for recovery. Steam stripping is generally used to recover the absorbed light hydrocarbons and restore the absorption capacity of the gas oil.

5. AdsorptionUsed for recovering heavy materials from gases. Adsorbents such as

activated charcoal and molecular sieves are used. Molecular sieves can select the materials recovered by molecular shape as well as molecular weight; this can be very useful. Energy can be saved by using a pressure swing adsorption

process wherein the material is released from the adsorbent by changing the system pressure.

6. FiltrationFiltration is used to remove wax precipitated from wax-containing

distillates. If the cold cake is allowed to warm slowly, the low-melting oils drains (sweat out) from the cake and further purify it

7. CrystallizationBefore filtration, waxes must be crystallized to suitably sized crystals by

cooling and stirring. Waxes undesirable in lubes are removed and become the microcrystalline waxes of commerce. p-Xylene can be crystallized and separated from other C8 materials by differential crystallization. For most purposes, this operation is both slow and expensive.

8. ExtractionThis procedure is very important in preparing a high-quality

lube oil. Low-viscosity index material, waxes, color bodies, and sulfur compounds are removed in this way. Adequate mixing must be followed by clean and rapid separation of the two liquid layers.

C. Chemical Conversion Processes

Cracking or Pyrolysis

• The breaking down of large hydrocarbon molecules into smaller molecules by heat or catalytic action. Zeolite catalysts are common; other types are also used.

C 7H15·C15H30·C7H15 C7H16 + C6H12:CH2 + C14H28:CH2

Heavy gas oil Gasoline Gasoline Recycle Stock

(antiknock)

Polymerization• The linking of similar molecules, the joining together of light olefins.

C C C C

C – C = C + C – C = C C – C – C – C = C + C – C – C– C = C

C C C C

Heat,pressure

and acatalystUnsaturated

short chains

Longer chains82% 18%

Crude Distillation Unit ProcessProcess Objective:

– To distill and separate valuable distillates (naphtha, kerosene,diesel) and atmospheric gas oil (AGO) from the crude feedstock.

Vacuum Distillation Unit Process

• Process Objective:

– To recover valuable gas oils from reduced crude via vacuum

distillation.

Delayed & Fluid Coking Processes

• Delayed Coking Process• Process Objective:

– To convert low value resid to valuable products (naphtha and diesel) and coker gas oil.

• Fluidic Coking Process• Process Objective:

– To convert low value resid to valuable products (naphtha and diesel) and coker gas oil.

Delayed & Fluid Coking Processes

Fluidic Catalytic Cracking (FCC)Process


– To convert low value gas oils to valuable products (naphtha and

diesel) and slurry oil.

HF Alkylation Process


– To combine light olefins (propylene and butylene) with isobutane to form a high octane gasoline (alkylate).

Unsaturated + isosaturated saturated branched chain, e.g., catalytic alkylation

C

C – C – C – C– C

C C

C = C – C– C + C – C – C

C

C

C – C = C + C – C – C C – C – C – C – C

C C C C

C – C – C – C – C

C C C

1 Butylene

IsobutaneIsobutylene

Isobutane

2,3,3-Trimethylpentane

2,2,4-Trimethylpentane,Or “isooctane

Hydrotreating Process


– To remove contaminants (sulfur, nitrogen, metals) and saturate olefins and aromatics to produce a clean product for further processing or finished product sales.

Naphtha Hydrotreating Gasoline HydrotreatingMid-Distillate HydrotreatingFCC Feed Pretreating

Hydrocracking Process


– To remove feed contaminants (nitrogen, sulfur, metals) and to convert low value gas oils to valuable products (naphtha, middle distillates, and ultra-clean lube base stocks).

C 7H15·C15H30·C7H15 + H2 C7H16 + C7H16 + C15H32 (no unsaturates formed)

Heavy Gas Oil RecycleStock

Branched-Chain

Gasoline

Straight-Chain

Catalytic Reforming Process


– To convert low-octane naphtha into a high-octane reformate for gasoline blending and/or to provide aromatics (benzene, toluene, and xylene) for petrochemical plants. Reforming also produces high purity hydrogen for hydrotreating processes.

Isomerization Process• Process Objective:

– To convert low-octane n-paraffins to high-octane iso-paraffins.

Mass Balance

Products and by-Products

Products and by-Products

• One barrel of crude oil, when refined, produces about 19 gallons of finished motor gasoline, and 10 gallons of diesel, as well as other petroleum products. Most petroleum products are used to produce energy.

• Major products of oil refineries

•Asphalt•Diesel fuel•Fuel oils•Gasoline•Jet fuel•Kerosene

•Liquefied petroleum gas (LPG)•Lubricating oils•Paraffin wax•Tar•Petrochemicals

By-Productso Detergento Fertilizero Synthetic fiberso Vitaminso Plastico CDs / DVDso Band-Aids

o Linoleumo Perfumeo Insecticideo Petroleum Jellyo Soapo Vitamin Capsuleso Candles (wax)

• There are 6000+ items made from petroleum waste/by-products. Here are some:

Energy Use and Energy Intensity

Environmental and Social Impact/Issues

http://en.wikipedia.org/wiki/File:Oil-spill.jpg

Environmental Issues• Air Issues• Under the Clean Air Act (CAA) states have the primary responsibility to

address air-related impacts from energy development. States are required under the Act to maintain - or come into attainment with -National Ambient Air Quality Standards (NAAQS)

– Criteria air pollutants (ozone, CO, SO2, PM, and their precursors, including Nox and VOCs)

– Hazardous Air pollutants (HAPs, primarily fugitive VOC emissions from oil and gas production)

– Haze precursors (which include ozone, Nox SO2, and particulates)

– greenhouse gases (GHGs, which include CO2 and CH4)

Environmental Issues

• Water Issues– produced water– drilling fluids, cuttings and well treatment chemicals– process, wash and drainage water– sewerage, sanitary and domestic wastes– spills and leakage

Environmental Issues

• Land Use Issues

• Most land use-related activities and criticisms of production operations revolve around:

Surface disturbances due to drilling, and certain drilling techniques used to reduce these impacts;

Impact of oil and gas operations on wildlife due to surface disturbances, noise, and other industrial activities;

Treatment of drilling waste; and Separation of surface and mineral rights.

Summary of Environment and Social Impacts for Activates Associated with Petroleum Refining and the Storage of Petroleum Products

Social Impacts• Oil pollution has impacted on the community in several ways. These are

grouped into three interrelated impacts viz.;

1. Adverse impacts on Biodiversity

- The most profound and adverse impact of oil pollution in with far-reaching implications on all other aspects of our traditional lifestyles and livelihoods, had been the total loss of biodiversity and destruction of habitats largely due to soil degradation.

- During oil spills, the process of photosynthesis which enhances plant diversity is impaired since the process is reduced due to the fact that spilled crude have a high absorbance property so when the crude

spreads on to the surface of leaves, the latter find it difficult to photosynthesize and thus die, leading to biodiversity loss.

The toxic crude also affects underground herbs and shrubs, while microbial organisms which form important groups in the food web,

are also destroyed.

Social Impacts

2. Socio-economic Impacts

I. Nutritional styles and Food Shortage

- The combination of the effects of oil spill and acid rain resulting from gas flaring has been soil degradation which affects crop yield and harvest. Fish are driven away from in-shore or shallow waters into deep-sea as a result of flaring. The whole impact of this, is food shortage and which has affected

the ability of most families to feed themselves.

Social Impacts

II. Destruction of Traditional Means of Livelihood

- Another implication of oil pollution is that having destroyed biodiversity, it has also rendered the agricultural sector unprofitable. Hence, most of the youth and women have become jobless since our local economic support system of fishing and farming is no longer sustainable.

III. Migration and the Rise of Environmental Refugees

- Oil pollution has resulted in the destruction of the environment. This in turn has led to the unsustainability of land for the traditional economic livelihood patterns that once thrived in the area

Social ImpactsIV. The Impact on Cultural Values and Spirituality

- Oil spills and Gas flares knows no boundaries so there are adverse impacts on cultural values and social harmony. One of the most telling impacts of oil pollution on the community is that it has led to the death and possible extinction of medicinal plants and herbs that are rooted in our traditional medicine and spirituality and have deep spiritual significance to the community. This degradation is brought about by the fact

that most of these herbs and plants are found in sacred grooves, shrines and forests, which have fallen under direct destruction in the course of oil exploitation and the toxicity of oil pollution.

Social ImpactsV. Impact on Traditional Institutions of Authority and

Social Harmony

- One area in which oil pollution has dealt a dead knell to our customs and traditions is the rugged individualism which it has fostered amongst members of our communities which is contrary to our communal lifestyles. This had led to the disintegration of customs, traditions and social values, such as respect for our elders.

Social Impacts

3. Physico-health Impacts of oil Pollution

The most worrisome aspect of oil pollution in is the rise in occurrence of certain. If the level of the harmful chemicals could be high in ordinary water, the sediments which fish and other aquatic creatures feed on are definitely higher in Benzo pyrene concentration, and the people dependent on these marine creatures for food, automatically take in much more higher level

of the cancerous chemical.

Plant Visit Experiences

References• www.doe.gov.ph• http://www.petrostrategies.org/Learning_Center/refining.htm• https://web.duke.edu/soc142/team9/SEF.html• www.eia.gov• www.petroleum.co.uk• www.opec.org• Lee, H., Molburg, J., Wang, M., “Allocation of Energy Use in Petroleum

Refineries to Petroleum Products: Implications for Life-Cycle Energy Use and Emission Inventory of Petroleum Transportation Fuels”, Int J LCA 9 (1) 34 – 44 (2004)

• Energetics Incorporated for the U.S. Department of Energy Office of Energy Efficiency and Renewable Energy Industrial Technologies Program, “Energy Bandwidth for Petroleum Refining Processes”, October 2006

• European Bank for Reconstruction and Development Sub-sectoral Environment and Social Guidelines Petroleum Refineries and Petroleum Storage

• Eze, J., “Top 16 uses of Petroleum”, Gas Oil Energy Magazine, 2010, April 7

• PYAGBARA L., “The Adverse Impacts of Oil Pollution on the Environment and Wellbeing of a Local Indigenous Community” AUGUST, 2007

• Shrieve’s Chemical Process Industries

petroleum industry

Education