2016 Fall Conference

End-User Perspective Panel Session: Oil & Gas – Operational Challenges

Robert Jelley, PE, Machinery Engineer, Reliability Engineer, Chevron

David Keener, Rotating Equipment Reliability Team Leader, Chevron

Mike Rhoades, PE, Machinery SME, Chevron Leader, Chevron

Industry Outlook

“The oil industry is on the cusp of a turnaround after oil supply gluts earlier this year wreaked havoc”

Analysts at Goldman Sachs

“When we get back to a reasonable level of activity, there’s going to be an extreme short supply of experienced personnel”

Jeff Bush, Energy Firm CSI Consulting

Today’s Panelists

Chevron Pascagoula Refinery• Robert Jelley• David Keener• Mike Rhoades

PASCAGOULA REFINERY DOWNSTREAM AND CHEMICAL

“CHALLENGES & OPPORTUNITIES IN PUMPING SYSTEM RELIABLITY”

BackgroundWho We Are

• Standard Oil Kentucky built the Pascagoula refinery in 1961

• The 1968 Pascagoula Expansion Project doubled refinery capacity by adding crude, hydrocracking, hydrogen, and reformer units and a new sulfur recovery plant

• In 2014, the Pascagoula Base Oil Plant was completed. The new addition can produce approximately 25,000 barrels per day of premium base oils, which are used in high-performance lubricants, including motor oils for consumer and commercial uses. Included new berths to the Chevron wharf, new product tanks, new railcar capabilities.

• Today, the refinery processes 330,000 barrels of crude oil daily. Pumping systems are a critical component in supporting production.

What We Do

• Products: motor gasoline, jet fuel, diesel fuel, bunker fuel, LPG, aviation gasoline, petroleum coke and sulfur

• Includes manufacturing, storage, and shipping facilities consisting of 20 major refining process units and more than 200 tank and marine terminals

• 777 pump trains >100hp (most of which are centrifugal)

Pascagoula Refinery Reliability

Reliability Engineering team has pumping challenges in these areas:

• Diagnosing root cause(s) of underperforming pumping systems

• Driving improvements in MTBR

• Identify opportunities to reduce energy of major pumping systems

• Developing solutions for “bad actors” using Life Cycle Cost analyses

• Monitoring performance and mechanical health of pumping systems, including continuous and route based monitoring

• Verification of system head curves for re-rating or replacing existing pumps

Pump Discussion with HI Members

Primary issues affecting O&M costs include systems experiencing:

• High vibration levels

• Low performance, including capacity and efficiency deficiencies

• Excessive energy consumption

• Low MTBR due to bearing and seal reliability

• Thrust loading issues

• Front-End Engineering layout and design issues

In addition, we would like to focus on how these negative attributes effect operating and maintenance costs as well as lost production.

How Can the Pump Industry Assist the Pascagoula Refinery?• Increase industry knowledge re-design, application, and fit for service

• Improve front end engineering to ensure optimal pumping system design in accordance with HI, API, and Chevron standards

• Develop and improve methods to analyze process parameters, performance and mechanical health data, maintenance histories, and operational demands to determine root cause solutions and provide proper corrective actions

• Current process for evaluating/upgrading existing equipment inefficient, resulting in excessive equipment downtime.

• Continue to develop material selection to improve performance and reliability. Provide design support for minimum flow control requirements

Examples• Operating and EPC personnel lack good understanding of pump

application/characteristics

• Impeller size at 97% of maximum and very low efficiency on OEM proposal

• Impeller fatigue failures on high energy pumps

• Power-end upgrades require extended pumping unit downtime

• Continue to research material and coating selection for wetted wear components (Shaft, impeller, throttle bushing and wear rings)

• Recent proposal showed minimum flow control requirement in “fine print” but needed more emphasis

Q&A