Crude Oil Quality-A Composition Based Assessment

© 2000, 2001 weMeasureIt inc

Crude Oil Quality Crude Oil Quality

A Composition Based AssessmentA Composition Based Assessment

Presented by Presented by

David GrudoskiDavid Grudoski

PresidentPresident

weMeasureIt Inc.weMeasureIt Inc.


The Issues in Crude Oil Assessement

"At present, no mechanism exists to capture and manage quality data from each cargo lifted. (Such information would go a long way toward achieving true quality transparency and reducing the quality risk inherent in acquiring foreign crude oil.)

The usual contractual reference to "normal export quality" is not very comforting to refiners who must run what they actually receive, regardless of the expected quality and value. This ultimately results in the value of the foreign barrel being discounted by varying amounts, depending on the refiner's tolerance for quality risk and uncertainty.

In our experience, this discounting is typically greater than the actual quality valuation difference justifies (the unknown is viewed as more costly than the known, all else being equal),and in the long run reduces returns to sellers."

Manage crude oil quality for refining profitability" K.G. Waguespack, Hydrocarbon Processing,Sept.98 Vol. 77 No. 9


What Determines Crude Oil Value?

The value of a crude oil is ultimately determined by the market value of saleable products derived from the crude.

The saleable products produced are determined by the conversion capabilities of the refinery and operational conditions impacting the refining process

The crude oil best able to meet or exceed the product liftings and target profit margins for the facility is the most valuable.


10 15 20 25 30 35 40 45 50 5518

20

22

24

26

28

30

Gravity (°API)

Pric

e/B

BL

Kern River

Alaskan NS

Lost Hills

Tiajuana Lt

Urals

Louisiana Lt Isthmus

West Texas Sour Saudi Light

Minas

Bonny Light

Brent

East Texas

West Texas IntermediateWyoming Sweet

Crude Oil Price vs API Gravity

How do we value crude oils?


Pour Point vs API Gravity (Whole Crude)

From an assay database of 700 crude

oils

-200

-150

-100

-50

0

50

100

150

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70

Gravity (°API)


0

1

2

3

4

5

6

7

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70

Gravity (°API)

Sulfur Content vs API Gravity (Whole Crude)

From an assay database of 700 crude oils

30°<=181 Crudes <=35°API1.9%<=29 Crudes <=2.2% Sulfur

16 Crudes meet both criteria16 Crudes meet both criteria


Crude Oil Price vs Sulfur wt%

How do we value crude oils?

0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 215

20

25

30

Sulfur (Wt%I)

Pric

e/bb

l

Kern River

Alaskan NS

Lost Hills

Tiajuana Lt

Urals

Louisiana Lt Isthmus

West Texas Sour Saudi Light

Minas

Bonny Light

Brent

East Texas

West Texas IntermediateWyoming Sweet


10

20

30

40

50

0

0.5

1

1.5

2

18

20

22

24

26

28

30

Kern River Saudi Light West Texas Sour

Urals

Alaskan NS

Isthmus

Tiajuana Lt

Lost Hills

Louisiana Lt

Brent

Minas

East Texas

West Texas Intermediate

Bonny Light

Wyoming Sweet

Crude Price vs Sulfur vs Gravity

Gravity (°API)

Sulfur (Wt%)

Price

($$/BBL)


Examples of Crude Oil Yield/Price Variation

<650°F

>650°F

67.2%

32.8%

50.3%

49.7%

West Texas Int. Kern RiverAlaskan North Slope

API

Wt% S

Price

39°

0.3

$27.25

27°

1.1

$27.74

13°

1

$18.25

23.6%

76.4%


What is Crude Quality

Crude Oil Quality can be simply defined as the agreement of properties and volumetric yields between the contractually tendered crude and the delivered crude.

This quality is generally determined by the Crude Assay. An extensive analysis of the physical and chemical properties of the crude as determined by physical distillation of standard cuts and their characterization by physical and chemical analyses.

In the petroleum industry, price transparency is greatly facilitated by futures exchanges (e.g.,NYMEX, IPE) and price reporting services (e.g., Platts, OPIS, Reuters, etc.), yet no similar mechanism exists for quality.

Because price is tightly linked to quality, the degree of price discovery is ultimately bound by the degree of quality transparency, a fact that is often overlooked by an industry focused on the "paper" side of price risk.


Crude Reference ID LtGasoline-Gravity, °API LVGO-Gravity, °API AtmResid-Yield, vol % COUNTRY LtGasoline-Mercaptan Sulfur, ppm LVGO-Sulfur, wt % AtmResid-Gravity, °API STATE LtGasoline-Octane Number, Research, Clear LVGO-Nitrogen, ppm AtmResid-Sulfur, wt % CRUDE LVGO-Naphthenes, vol % AtmResid-Nitrogen, ppm Misc. Info LtNap-Gravity, °API LVGO-Paraffins, vol% AtmResid-MCRT, wt % ANALYSIS QUALITY LtNap-Mercaptan Sulfur, ppm LVGO-Pour Point, °F AtmResid-Asphaltenes, wt % (C7 Insolubles) WC-Gravity, °API LtNap-Paraffins vol % LVGO-Acid, mg KOH/g AtmResid-Nickel, ppmWC-Sulfur, Wt % LtNap-Naphthenes, vol % LVGO-Aniline Point, °F AtmResid-Vanadium, ppm WC-Pour Point, °F LtNap-Aromatics, vol % LVGO-Hydrogen, wt % AtmResid-Pour Point, °F WC-Acid, mg KOH/g LtNap-Octane Number, Research, Clear LVGO-Viscosity @ 50 °C (122 °F), cSt AtmResid-Viscosity @ 50 °C (122 °F), cStWC-Viscosity @ 40 °C (104 °F), cSt LVGO-Viscosity @ 100 °C (212 °F), cSt AtmResid-Viscosity @ 100 °C (212 °F), cSt WC-Viscosity @ 50 °C (122 °F), cSt HvyNap-Gravity, °API LVGO-Characterization Factor, K AtmResid-Characterization Factor, K WC-Characterization Factor, K HvyNap-Sulfur, wt % V%Yld-Butanes and Lighter HvyNap-Mercaptan Sulfur, ppm HVGO-Gravity, °API VacResid-Yield, vol % V%Yld-Light Gasoline (55-175 °F) HvyNap-Paraffins vol % HVGO-Sulfur, wt % VacResid-Gravity, °API V%Yld-Light Naphtha (175-300 °F) HvyNap-Naphthenes, vol % HVGO-Nitrogen, ppm VacResid-Sulfur, wt % V%Yld-Heavy Naphtha (300-400 °F) HvyNap-Aromatics, vol % HVGO-Pour Point, °F VacResid-Nitrogen, ppm V%Yld-Kerosene (400-500 °F) HvyNap-Smoke Point, mm (ASTM) HVGO-Acid, mg KOH/g VacResid-Hydrogen, wt %V%Yld-Atm. Gas Oil(500-650 °F) HVGO-Aniline Point, °F VacResid-MCRT, wt % V%Yld-Lt Vacuum Gas Oil (650-800 °F) Jet-Gravity, °API HVGO-Hydrogen, wt % VacResid-Ramsbottom Carbon, wt %V%Yld-Hvy Vacuum Gas Oil (800-1050 °F)Jet-Sulfur, wt % HVGO-Viscosity @ 50 °C (122 °F), cSt VacResid-Asphaltenes, wt % (C7 Insolubles) V%Yld-Vacuum Residuum (1050 °F+) Jet-Mercaptan Sulfur, ppm HVGO-Viscosity @ 100 °C (212 °F), cSt VacResid-Nickel, ppm

Jet-Paraffins vol % HVGO-Characterization Factor, K VacResid-Vanadium, ppm Jet-Naphthenes, vol % VacResid-Iron, ppmJet-Aromatics, vol % VacResid-Pour Point,°F Jet-Freezing Point, °F VacResid-Viscosity @ 50 °C (122 °F), cStJet-Smoke Point, mm (ASTM) VacResid-Viscosity @ 100 °C (212 °F), cSt Jet-Acid, mg KOH/g VacResid-Viscosity @ 135 °C (275 °F), cSt Jet-Viscosity @ 50 °C (122 °F), cSt VacResid-Cutter, vol % in Fuel OilJet-Gravity, °API VacResid-Fuel Oil Yield, vol %

VacResid-Characterization Factor, K AGO-Sulfur, wt % AGO-Nitrogen, ppm AGO-Paraffins, vol%AGO-Naphthenes, vol %AGO-Aromatics, vol%AGO-Acid, mg KOH/gAGO-Pour Point, °F AGO-Viscosity @ 50 °C (122 °F), cStAGO-Cetane Index AGO-Characterization Factor, K

Typical Crude Assay Data

This is the initial information used by Planners to develop operating plans for plants and facilities


TBP Distillation Curve

Boiling Point (°F)

Yie

ld (

Wt

%) Product Yields

Naphtha/Gasoline

Kero/Jet

Diesel

Atmos Gas Oil

Vacuum Gas Oil

Resid

Distillate Cut Point


0 200 400 600 800 1000 12000

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

SIMDIS Signature of a Crude Oil

Arabian Lt Crude Oil

Boiling Point (°F)

Yie

ld (

Wt

%)


0 200 400 600 800 1000 12000

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

A Chromatographic View of Distillate Fractions

Boiling Point (°F)

Yie

ld (

Wt

%)

Naphtha/Gasoline

Kero/Jet

Diesel

Atmos. Gas Oil

Vacuum Gas Oil

Residum


Crude Unit Optimization can be worth $3-$6million /year

Crude Unit 1 Cutpoints Limit Cost$/bbl shift

MSR/JET CP 300-350 $0.52 Hit Max CPJET/DSL CP 450-490 $0.06 Hit Max CPDSL/ISO CP 550-590 ($0.01) Hit Min CP

ISO/FCC CP 730-780 $4.22 /bbl to increaseFCC/RES CP 930-960 $6.20 Hit Max CP

Crude Unit 2 Cutpoints Limit Cost$/bbl shift

MSR/JET CP 300-350 $0.00 Floating on CPJET/DSL CP 450-500 $0.00 Floating on CPDSL/ISO CP 550-590 ($0.24) Hit Min CP

ISO/FCC CP 730-790 $3.85 /bbl to increaseFCC/RES CP 920-940 $0.04 Hit Max CP

Better Measurement Techniques (SIMDIS) allow us toincrease Isomax/FCC cutpoint by 20 F and stay withinIsomax catalyst limits.

Result:More conversion capacity and higher valued products.

Estimated value of 3 to 6 million $/year


0 200 400 600 800 1000 12000

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

The Value of Accurate Cut Points

Boiling Point (°F)

Yie

ld (

Wt

%)

Shift of 10°F in Cutpoint is worth $1.00/BBL


New Process Models Assign

Value to Specific Compounds

Molecule DestinationsMogas

Propane ($111.30)Iso Butane ($15.30)

Normal Butane ($2.80)Iso Pentane $16.90

Normal Pentane $12.50Cyclo pentane $24.70

Di-Methyl Butane $25.502 Methyl Pentane $21.003 Methyl Pentane $21.80

Normal hexane $11.70Me- cyclo pentane $20.90

Cyclohexane $19.90Benzene $29.70

C7 Iso Paraffins $19.60C7 Normal Paraffin $8.60

C7 Naphthenes $19.30Toluene $32.40

C8 Iso Paraffins $16.10C8 Normal Paraffin $7.70

C8 Naphthenes $17.80C8 Aromatics $32.80


The Value of Compositional Measurements

Molecular transformations have differential values

Dimethyl-butane

Cyclohexane

Process DestinationMogas Blend Pool

Aromatics Conversion

$25 /Bbl $16 /Bbl

$30 /Bbl $35 /Bbl


Carbon/Hydrogen Measurements

When properly configured the GC-AED provides a direct measure of the C/H ratio of petroleum streams

0 200 400 600 800 10000

0.005

0.01

0.015

0.02

0.025

BP (°F)

Ele

me

nt R

ela

tive

Res

po

nse

CH Adjusted Response Curves

Carbon Hydrogen Elemental Signature -Heavy Gas Oil

Total CHCarbonHydrogen

400 600 800 10000

10

20

30

40

50

60

70

80

90

100

BP (°F)

Cum

ulat

ive

Yie

ld W

t%

CH SIMDIS for Heavy Gas Oil

Total CHCarbonHydrogen


Metals in FCC Feed

Ni and V in FCC FeedDetermined by HT-GC-AED

400 500 600 700 800 900 1000 1100 1200 1300 14000

5

10

15

20

25

30

BP (°F)

Richmond Refinery FCC Total Feed 3/29/99

C179S181

V292Ni301

400 500 600 700 800 900 1000 1100 1200 1300 14000

0.05

0.1

0.15

0.2

0.25

0.3

0.35

BP (°F)

4 ppm Total Ni

High Temperature AED Signatures for C,S,Ni,V

400 500 600 700 800 900 1000 1100 1200 1300 14000

5

10

15

20

25

30

BP (°F)

Richmond Refinery FCC Total Feed 3/29/99

C179S181

V292Ni301

400 500 600 700 800 900 1000 1100 1200 1300 14000

0.05

0.1

0.15

0.2

0.25

0.3

0.35

BP (°F)

4 ppm Total Ni

High Temperature AED Signatures for C,S,Ni,V


Process Variation

QuickTime™ and aVideo decompressor

are needed to see this picture.


-0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8 10

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

HDN Feed

HDN Product

Splitter Btms

Iso Jet

Variation of Isomax Process Streams

Iso Heavy

Iso LightIso Light

Monitor Process Variation


0 500 1000 15000

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1 HDN Prd 6/11 Target: HDN Prd 6/11

HDN Prd 5/14 Distance=6.2708°




Monitor Process Variation


0 500 1000 15000

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1FCC HCO Source: FCC HCO

FCC HCO

FCC HCO

FCC HCO

FCC HCO

Fingerprinting


ARAB EXTRA LIGHT

ARABIAN MEDIUM

ARABIAN HEAVY

Crude Oil Signature

Here we show Carbon and Sulfur SIMDIS signatures as an archival record of the composition of crude oil (GC-AED Methodology)


Crude Oil Characterization

Carbon and Sulfur Distributions in Crude Oils

0 200 400 600 800 10000

100

200

300

0 200 400 600 800 10000

20

40

60

80

0 200 400 600 800 10000

100

200

0 200 400 600 800 10000

10

20

30

0 200 400 600 800 10000

200

400

0 200 400 600 800 10000

50

100

150

Crude A (Asian) Crude B (Mid-East)Crude C (South American)


WEST TEXAS EUGENE ISLAND MIRI LIGHT KUWAIT EXP GREEN CANYON

ALASKAN NORTH SLOPE BRUNEI VENTURA PIPELINE LAGO TRECO ALASKAN NORTH SLOPE

NIGERIAN MEDIUM NIGERIAN HEAVY WEST TEXASWEST TEXAS INTERMEDIATEAMOCO PIPELINE

KUTUBU EXPORT BLENDPALANCA EXPORT RIO NEGRO SOUDIE WEST LINAPAKAN

KUWAITI ORITO CAAMAR ARCO PIPELINE 63 BEAR RIVER BLEND

CANADON SECO ESCRAVOZ OMAN LENNOX URALS EXPORT

Crude Oil Signatures

Reference Crude Oil Library


0 500 1000 15000

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1KUWAITI Target: KUWAITI

ARABIAN HEAVY Distance=4.8828°

ARABIAN MEDIUM Distance=4.9904°

KUWAIT EXP Distance=5.1902°

IRANIAN LIGHT Distance=5.5716°

Crude Oil Fingerprinting


A B C D E F G H I J

A

B

C

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E

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2D Map of the Sample Universe2D Map of the Sample Universe

This plot presents a visualization in a 2D mathematical space of the chromatographic profiles for 1650 samples


A B C D E F G H I J

A

B

C

D

E

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2D Map of the Sample Universe (n=1650)

Source: KUWAIT EXP

4.4° ARABIAN MEDIUM

5.2° KUWAITI

5.2° IRANIAN LIGHT

6.1° KUWAITI

Identification and Extraction of Similar Samples-Identification and Extraction of Similar Samples-Crude OilsCrude Oils

Here we show the utility of our approach to automatically extract the samples from the data base having the greatest similarity to the source sample


A B C D E F G H I J

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2D Map of the Sample Universe (n=1650)

Source: HvyHeart2/12

7.6° HvyHeart2/26

8° HvyHeart2/19

8.5° HvyHeart 3/3

10° HvyHeart Cut

Identification and Extraction of Similar Samples-Identification and Extraction of Similar Samples-NaphthasNaphthas

Here we show the utility of our approach to automatically extract the samples from the data base having the greatest similarity to the source sample


Thanksfor the

Opportunity

Documents

Crude Oil Quality-A Composition Based Assessment