Overview and History of Process Industry

Fall 2014

Today’s Agenda Today’s Agenda

– Birth, growth and development of the industry

– Impact of the industry on the community and the economy

– Responses of the industry to global issues

– Regulation of the Industry– New terminology

The Process IndustryThe Process Industry

Process Industry

Pharmaceuticals

Pipeline

Chemical Refining Food/Bev Pulp/Paper

OilfieldEnergy

Traditional Nuclear

Alternative

Metals

TermsTerms

• Exploration• Process• Process Technology• Process Industry• Process Unit• Refining• Feedstock• Petrochemicals

Early Uses of PetroleumEarly Uses of Petroleum

• Egypt - mummification• China – heating homes• Persia – asphalt street paving• Sumatra (Indonesia) - medicine• Native Americans - medicine• Medicine shows – miracle elixirs

In Search of a MarketIn Search of a Market

• 1556: Petroleum first named by Georg Bauer

• Late 1700s - 1800s: Industrial revolution, beginning of chemical industry

• 1792: Natural gas industry born in England – William Murdock

• 1800s: Demand for manufactured consumer products increases– Growth of paper industry

– 1879: Light bulb invented

• 1850: First refinery• 1853: Kerosene

The Market ExpandsThe Market Expands

• 1859: Colonel Edwin Drake drilled First oil well in Titusville, PA, by adapting old steam engine to drill bit

• 1860: Fifteen refineries producing naphtha, kerosene, heavy oils and tars

• 1865: First pipeline in Titusville, PA• 1869: New products: Vaseline, candle wax, gum• 1886: Henry Ford designs first gasoline-powered

automobile

• Early 1900s: Britain and U.S. dominate industry

Chemical ProcessingChemical Processing

• 1913: Thermal cracking to produce gasoline

• 1917: First fractionating column• 1920: First gas stations

• 1936: Catalytic cracking to produce gasoline

• 1940: Catalytic reforming to increase octane

War, Petroleum, and War, Petroleum, and ChemicalsChemicals

• In the 1940’s, WWI and WWII dramatically increase importance of processing industries

• Industry advances help Allied victories– Synthetic rubber– Plastic– Rayon & Nylon– Higher octane fuels

• Post WWII Booms– automobile travel– babies - consumer products

The 1950s - 1970sThe 1950s - 1970s

• 1950s: U.S. and European domination of petroleum business

• 1950 – now: Nuclear medicine• 1954: First nuclear power plant in

Russia• 1960s: Foreign nationalization• 1960’s - 70’s: Plastics manufacturing

advances• 1970s: Oil glut and Arab Oil Embargo

1980’s - Today1980’s - Today

• 1980’s – 2000’s: Process automation advancements, cogeneration

• 2000’s – today: Environmentally friendlier / renewable raw materials, recycling, waste minimization, sustainability

End Products………..

Pollution, Accidents – Pollution, Accidents – Crisis and ResponseCrisis and Response

• 1960’s - Warning signs… dying lakes, book Silent Spring

• “Critical Mass” of chemicals in the environment

• Growing awareness of ecological damage – DDT & bird egg shells

• 1984 – Bhopal plant explosion in India• 1989 – Exxon Valdez oil tanker spill in

Alaska• Responses by government and industry

Regulation of the IndustryRegulation of the Industry

Major Regulatory Agencies• EPA

– Clean Air Act (1970)– Clean Water Act (1977)

• OSHA• DOT• NRC• Homeland Security

Today’s Process IndustryToday’s Process Industry

Impact on Gulf Coast Region• Process industries responsible for

about 50% of Houston’s economy • Employs 60,000 workers• Needs 4,800 – 6,000 new

hires/year• Jobs have become more complex

Current TrendsCurrent Trends

• Oil prices (hence petrochemical product prices) very dependent on world events, politics

• Big Rollover – peak production…. many believe it came in 2006-2007– Hubert Peak Theory of global petroleum

production peaking, then declining 2006-07… but then comes shale production – what else might we be able to recover in future?

Current TrendsCurrent Trends

• Consolidations in industry– Mergers and acquisitions– Reduction of duplicate processes– Emphasis on keeping costs low

• Impact on Process Technicians– Higher expectations, more

responsibility– More education and training needed– More proactive work strategies

Trends for the FutureTrends for the Future

1. Serious foreign competition

2. More use of computers, advanced control simulation, process automation

3. Rapid technological change

4. Partnerships between education and industry

5. More regulation6. More legal issues

7. More responsibility, higher expectations of workers

8. More education/training9. Less supervision10. More smart jobs, 11. Job sharing12. Sex equity and

diversity issues

Review QuestionsReview Questions

• Page 40 – Introduction to Process Technology (Thomas – 2010)