2014 AFPM (NPRA) Q&A and PADS

Emerson Alignment

2014 AFPM (NPRA) Q&A and PADS

Emerson Alignment

Hyatt Regency Denver

Denver, CO

October 5-8

Reminder!Reminder!

One important note about this event is that the AFPM is very sensitive about anyone speaking about price, even comments/discussion about current oil prices (public knowledge). With refiners all at one location, people speculate about price-fixing… just avoid the subject all together.

Industry ChallengesIndustry Challenges Gasoline demand still down

– Gasoline demand has not returned from the 2009 recession

– The US now exports more fuel products than imports

– Lowest cost producer wins – export to other regions

Tight oil (light) and Canadian (heavy) are the Opportunity Crudes– Challenges processing each

Shortage of skilled resources– Especially with turnarounds

Opportunity CrudesOpportunity CrudesTight Oil Properties: API > 42°, and <0.3 wt% sulfur Concerns: Higher concentrations of light components, large amount of

naphtha, high levels of Ca and Fe that can lead to catalyst poisoning, very paraffinic (lower gasoline octane), and immiscibility concerns when blending tight oil with heavy crude that can lead to fouling and corrosion issues

Heavy Sour Crude Properties: API < 26°, and >1 wt% sulfur Concerns: Yield slate, increased delta coke causes lower conversion

and higher regeneration temperature in FCC, contaminants may harm catalysts, corrosion problems in the crude unit, and fouling problems

 

Opportunity Crudes (cont.)Opportunity Crudes (cont.)Extra-heavy crude or bitumen Properties: API < 10°, typically also have high metals content, viscosity

100-10,000 cP at 60° F (15.6° C) for extra-heavy oil, and viscosity > 10,000 cP at 60° F (15.6° C) for bitumen

Concerns: Low cetane index for diesel, large amount of resid material, large amount of contaminants may harm catalysts, and fouling problems

 

High acid crude Properties: TAN >0.5 mg KOH/g, typically also heavy, API < 26° Concerns: Increased corrosion, poor salt removal and separation of oil

and water, fouling reduces plant capacity, degradation of catalyst by calcium, low cetane index for diesel, and may impact product specs

Tight Oil Crude AvailabilityTight Oil Crude Availability

Source: U.S. Energy Information Administration based on Drilling Info and LCI Energy Insight

Did you know?

United States crude oil domestic supply has

increased over one million bpd in each of the past two years, among the highest historical gains worldwide.

Cannot Export…

North America refiners will use a higher percentage of

tight oil

Tight Oil ChallengesTight Oil Challenges

Oil Movement H2S, amines, and high volatility Light Tight Oil (LTO) and crude blending LTO crude blends with Canadian crudes Hot section heat exchanger and fired heater tube

fouling Cold section heat exchanger fouling Variability in API Gravity Filterable solids and desalter operation Corrosion Downstream operations – catalyst and reactor controls

Near FutureNear Future Refiners will process a higher percentage of

tight oil Crude blending and incompatibilities will get

more scrutiny Fouling and corrosion monitoring will get more

attention Catalyst suppliers will make adjustments to get

expected yield and product qualities when processing higher percentage of tight oil

Heat ExchangersHeat Exchangers New opportunity crudes

and new normal with blending different combinations of crudes

Difficult to take measurements– Hot process fluids – Stacked exchangers– Other access constraints

Lack of temperature measurements between bundles

Time consuming to take measurements manually

Up to 50% of the heat delivered to the crude unit comes from the crude unit heat

exchangers

Increase Operations AwarenessIncrease Operations Awareness Early detection of accelerating fouling

– Filterable solids plugging– Paraffin accumulation – Asphaltene precipitation

Continuous health trending – Continuous monitoring and analysis to alert

of accelerated rate of fouling

Configurable Alerts– Email, text or alarm– Can be based on calculated heat transfer

degradation, or process measurements

Determine which exchanger needs cleaning– Fouling is not linear across heat exchanger

bundles– Only clean exchangers that require

cleaning

“With hindsight, many operators believe that a large part of the losses due to heat

exchanger fouling are avoidable”

- Shell Global Solutions International Himanshu Joshi et al

“We improved the efficiency of our crude preheat train,

and reduced emergency shutdowns in two of our

refineries. This reduced our fuel use, improved our capacity and made life

easier for our operators.” – Refining Operations Manager, Major

Refining Company

Convert Data into InformationConvert Data into Information Online system providing timely, actionable information

– Interface to existing control system and plant historian applications – Pre-engineered Monitoring and Analysis modules for Heat Exchangers– Information visibility to multiple departments

Information from heat exchanger on-line monitoring application

Event LogisticsEvent Logistics

Who attends?Who attends? Don’t forget, this is for refiners and petrochemical

manufacturers. Typical audience is process engineers, control

engineers, and decision-makers. This is a big event for catalyst providers, and

they will spend a lot in their hospitality suites.

Hyatt Regency DenverHyatt Regency Denver650 Fifteenth StreetDenver, CO 80202(303) 436-1234

Dress CodeDress Code Badge Required – Go to Registration First

Business casual – shirts with collars; no ties, no jeans, no sneakers and no shorts.

Emerson Hospitality SuiteEmerson Hospitality Suite Blue Spruce (Room assigned Monday)

– Monday (10/6), 6:30-10:30pm Food and drinks

– Please allow attendees to get food first– Food from 6:30-9:30pm only

Please wear Emerson logo shirt – Business casual

Sunday, Oct 5th Sunday, Oct 5th Registration - Badge Pick-up

– 03:00 pm - 06:30 pm

Q&A Kickoff Networking Event – 05:30 pm - 06:30 pm

If someone attends Sunday, can they please put up a flyer about the Emerson Suite details for Monday night?

Otherwise, Tom plans to put up Monday morning.

Monday, Oct. 6th Monday, Oct. 6th Registration

– 07:00 am - 06:30 pm

General Session and Keynote– 08:00 am - 08:55 am

Plant Automation: Keynote Address – 09:00 am - 10:00 am

Presentations for Principles and Practices, Plant Automation and Decision Support, and the Q&A

– Throughout the day

Lunch in Exhibit Hall– 12:00 pm - 02:00 pm

Reception in Exhibit Hall – 05:15 pm - 06:30 pm

Emerson Hospitality Suite– 06:30 pm - 10:30 pm

Tuesday, Oct 7Tuesday, Oct 7 Registration

– 07:00 am - 05:00 pm

Plant Automation: Cybersecurity - "An Examination of the Challenges of Cybersecurity Implementation for Process Control Systems"

– 08:00 am - 10:00 am

Lunch in Exhibit Hall– 12:00 pm - 02:00 pm

Plant Automation: Refinery Project Development - "Implementation of New Control System"– 02:00 pm - 03:30 pm

Plant Automation: Refinery Project Development (cont.) - "DCS Migration - What We Did"– 03:45 pm - 05:15 pm

Suite open at night– 6:00 pm on

Wednesday, Oct 8Wednesday, Oct 8 Plant Automation: Work Process Automation - "Closing the GAP: Real-time Integration

of Planning, Scheduling and Process Operation"– 08:00 am - 09:30 am

Coffee Break– 09:30 am - 09:45 am

Plant Automation: Instrumentation Technology - "Safety and Operational Excellence with Industrial Wireless Applications"

"Extend Proving and Maintenance Intervals with Meter Verification“ by Tom O’Banion from MMI

– 09:45 am - 11:00 am

More details online - http://www2.afpm.org/forms/meeting/Microsite/QA14,1

Trust FactorTrust Factor This event is primarily a networking opportunity to speak

with potential refining customers. Ask first, listen, and then position your reply to address

the customer’s challenges and needs.

Questions?Questions?

Contact Tim Olsen