overview and history of process industry fall 2014
TRANSCRIPT
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
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